Under South Carolina's 2018 local-tax guidance, which local sales or use tax applied to delivered goods and how did the Catawba Tribal tax work?

Plain-English summary

South Carolina Revenue Ruling 18-15 is a historical reference for Department-administered local sales and use taxes and the Catawba Tribal Sales and Use Tax. Revenue Ruling 22-8 expressly superseded it, so current transactions should be checked against that later ruling and current local-tax charts.

The ruling's core rule was destination-based collection. Once a retailer had sales-tax nexus with South Carolina—through physical presence or the economic-nexus standard—the Department treated the retailer as having nexus with every local jurisdiction whose sales and use tax the Department administered. The retailer therefore collected the applicable local tax for the county, municipality, school district, or other jurisdiction where its products were delivered and reported the tax by delivery jurisdiction.

The same duty applied to in-state retailers, out-of-state retailers with nexus, and sellers that voluntarily registered even though they lacked required nexus. Under the 2018 procedures, retailers generally reported local tax on Form ST-389 attached to the applicable sales and use tax return or through the Department's electronic systems.

When a retailer did not collect local use tax, the purchaser remained liable. Property bought for use rather than resale was reported where it was first stored, used, or consumed. Credit principles prevented double local taxation: tax paid in the delivery jurisdiction offset the use tax due in the destination jurisdiction, with the purchaser owing a difference when the amount paid was lower but receiving no refund when it was higher.

The ruling also cataloged local taxes then administered by the Department, but exemptions differed by tax type. A transaction exempt from state sales and use tax was generally exempt locally, while some state-taxable items were exempt under particular local laws. RR 18-15 specifically excluded county-collected accommodations taxes and prepared-meal taxes from its scope.

Catawba Reservation rules in this ruling

The Catawba Indian Claims Settlement Act supplied special rules for deliveries on the Reservation in Lancaster and York counties. Purchases by the Tribe for tribal-government functions and sales of Catawba pottery and artifacts made and sold by the Tribe or its members received the stated exemptions.

For other Reservation sales, the ruling distinguished the seller's location and transaction amount. On-Reservation sales generally bore the Tribal sales tax, equal to the combined state and local rate. A delivery from elsewhere in South Carolina of $100 or less bore the 6% state sales tax under the ruling, while an over-$100 delivery bore the Tribal sales tax. A registered out-of-state seller collected the 6% state use tax; when an out-of-state seller did not collect, the Tribe administered the Tribal use tax directly. These are historical descriptions that must be checked against RR 22-8 and current law.

What this meant under the 2018 ruling

Retailers delivering within South Carolina

Determine the delivery jurisdiction for each sale and apply the local taxes and exemptions in effect there. South Carolina nexus was not confined to the retailer's own physical location; it extended to every Department-administered local jurisdiction into which the retailer delivered.

Purchasers and nonprofit organizations

If the seller did not collect the local use tax, report it based on where the property was first stored, used, or consumed. Licensed businesses and nonprofits used the local-tax schedule with their sales and use tax return; other purchasers used the applicable return identified in the ruling.

Sellers delivering to the Catawba Reservation

Do not apply ordinary county destination rules without first checking the Settlement Act's special classification. The seller's location, whether an out-of-state seller collected tax, and—in certain in-state deliveries—the $100 threshold changed which government administered the tax.

Common questions

Q: Is RR 18-15 current guidance?
A: No. RR 22-8 expressly superseded and updated it.

Q: Which local jurisdiction's tax applied to delivered goods?
A: Under this ruling, the jurisdiction where the retailer delivered the product.

Q: Did a remote seller with South Carolina nexus have to collect local tax?
A: Yes. State nexus meant nexus with every Department-administered local jurisdiction, so the seller collected the applicable local tax by delivery destination.

Q: What if the retailer did not collect local use tax?
A: The purchaser paid it directly based on where the property was first stored, used, or consumed.

Q: Did every local tax have the same exemptions?
A: No. The ruling instructed taxpayers to consult the Department's local-tax chart because exemptions varied by the authorizing law.

Q: Did RR 18-15 cover county accommodations and prepared-meal taxes?
A: No. It expressly excluded those directly county-collected taxes.

Citations and references

• S.C. Code Ann. Title 4, Chapters 10 and 37 (authorized local sales and use taxes)
• S.C. Code Ann. Title 12, Chapter 36 and Chapter 117 of the regulations (state sales and use tax framework)
• S.C. Code Ann. Section 12-36-70 and South Dakota v. Wayfair, Inc., 585 U.S. 162, 138 S. Ct. 2080 (2018) (retailer nexus)
• S.C. Code Ann. Sections 12-36-940 and 12-36-1350 (tax on billings and use-tax receipts)
• S.C. Code Ann. Section 12-60-470 (refund rights and claims)
• S.C. Code Ann. Section 27-16-130(H) (Catawba Tribal tax rules)
• SC Revenue Ruling #22-8 (expressly superseded and updated RR #18-15)

Subject

Local Sales and Use Taxes and Catawba Tribal Sales and Use Tax

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR18-15.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC REVENUE RULING #18-15 (Revised)
SUBJECT:

Local Sales and Use Taxes and
Catawba Tribal Sales and Use Tax
(Sales and Use Tax)

EFFECTIVE DATE:

For sales made on or after November 1, 2018.

SUPERSEDES:

SC Revenue Ruling #09-9, SC Revenue Ruling #05-16 and all
previous advisory opinions and any oral directives in conflict
herewith.

REFERENCES:

Title 12, Chapter 36 of SC Code of Laws (2014, Supp. 2017)
Title 4, Chapter 10 of SC Code of Laws (Supp. 2017)
Title 4, Chapter 37 of SC Code of Laws (Supp. 2017)
Chapter 117 of SC Code of Regulations (2012, Supp. 2017)
School District and Other Local Sales and Use Tax Laws 1

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public and to Department personnel. It is an advisory opinion
issued to apply principles of tax law to a set of facts or general
category of taxpayers. It is the Department’s position until
superseded or modified by a change in statute, regulation, court
decision, or another Departmental advisory opinion.

I.

PURPOSE OF ADVISORY OPINION UPDATE:

On June 21, 2018, the United States Supreme Court in South Dakota v. Wayfair, Inc., 585
U.S.
, 138 S. Ct. 2080 (2018), ruled that retailers (including online retailers) without
physical presence in a state may be subject to sales and use tax. This decision overturned
1

Many school districts and other local sales and use tax laws have not been codified. For information as to
the act number assigned to, and the year of enactment of, such local sales and use tax laws, see SC
Information Letter #18-1. SC Information Letter #18-1 contains the most recently published information;
updated information will be published in new information letters on the Department’s website (dor.sc.gov)
as warranted.

1

the Court’s longstanding position in Quill Corp. v. North Dakota, 504 U.S. 298 (1992) and
National Bellas Hess, Inc. v. Department of Revenue of Illinois, 386 U.S. 753 (1967),
which only allowed states to collect sales and use tax on retailers with a physical presence.
The purpose of this advisory opinion is to update Department guidance with respect to the
criteria that must be met to require a retailer to remit a local jurisdiction’s sales and use tax
when delivering the product to a purchaser located in another local jurisdiction (e.g.,
counties, municipalities, school districts).
It is the Department’s position that once a retailer has established nexus with South Carolina
for sales and use tax purposes, the retailer has nexus for sales and use tax purposes with
every local jurisdiction in the state for which the Department administers and collects a local
sales and use tax. As such, the retailer must remit local sales and use taxes for any local
jurisdiction into which deliveries are made by, or on behalf of, the retailer.

Since this advisory opinion changes the position set forth by the Department in SC
Revenue Ruling #09-9, it will be implemented on a prospective basis and will therefore
only apply to deliveries made on or after November 1, 2018.
II. INTRODUCTION:
The South Carolina Code of Laws allows the imposition of various types of local sales
and use taxes. Citizens of a county, depending upon the needs within the county, may
impose one or several local sales and use taxes. Municipal councils, or the citizens of a
municipality, may impose a sales and use tax 2 for tourism development if the
municipality is located in a county where revenue from state accommodations tax is at
least $14 million in a fiscal year.
The Department publishes a chart with the various types of local sales and use taxes
collected by the Department and the exemptions allowed under each tax. As of the date
of this document, SC Information Letter #18-1 contains the most recently published
information; updated information will be published in new information letters on the
Department’s website (dor.sc.gov) as warranted.
Most local taxes administered and collected by the Department on behalf of local
jurisdictions are administered and collected on a county-wide basis. However, the
Catawba Tribal Sales and Use Tax is only imposed on the Catawba Indian Reservation
and the Tourism Development Fee is only imposed on a municipal-wide basis. The
criteria discussed in this advisory opinion, unless otherwise indicated in legislation
enacted by the General Assembly, will also apply to any future sales and use taxes
administered and collected by the Department on behalf of a jurisdiction on a countywide, municipal-wide, or other basis as established by the General Assembly.

2

This municipal sales and use tax is actually a fee (Local Option Tourism Development Fee) imposed
under Article 9 of Chapter 10 of Title 4. For purposes of simplicity, this fee will be referred to as a sales
and use tax in this revenue ruling.

2

Note: This advisory opinion addresses only the general local sales and use taxes collected
by the Department on behalf of local jurisdictions (e.g., counties, municipalities, school
districts) and the tribal sales tax collected by the Department on behalf of the Catawba
Indian tribal government. 3 It does not address the local taxes on sales of
accommodations or on sales of prepared meals that are collected directly by the counties.
III. TYPES OF LOCAL SALES AND USE TAXES:
The following is a list of local sales and use taxes 4 that the General Assembly has
authorized the Department to administer and collect on behalf of local jurisdictions that
may enact one or more of these local sales and use taxes.
Local Option: The local option sales and use tax is authorized under Code Section 4-1010, et seq. This tax is a general sales and use tax on all sales at retail (with a few
exceptions) taxable under the state sales and use tax. This tax is imposed to reduce the
property tax burden on persons in the counties that impose this type of local sales and use
tax.
Capital Projects: The local capital projects sales and use tax is authorized under Code
Section 4-10-300, et seq. This tax is a general sales and use tax on all sales at retail (with
a few exceptions) taxable under the state sales and use tax. This tax is imposed
specifically to defray the debt service on bonds issued for various capital projects in the
counties that impose this type of local sales and use tax.
Transportation: The local transportation projects sales and use tax is authorized under
Code Section 4-37-30, et seq. This tax is a general sales and use tax on all sales at retail
(with a few exceptions) taxable under the state sales and use tax. This tax is imposed
specifically to defray the debt service on bonds issued for various transportation projects
in the counties that impose this type of local sales and use tax.
Personal Property Tax Relief: The personal property tax relief sales and use tax is
authorized under Code Section 4-10-540, et seq. This tax is a general sales and use tax
on all sales at retail (with a few exceptions) taxable under the state sales and use tax.
This tax is imposed in lieu of the personal property tax imposed on private passenger
motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors. The tax
may not exceed the lesser of 2% or the amount necessary to replace the property tax on
motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors in the most
recently completed fiscal year.
Local Property Tax Credits: The local option sales and use tax for local property tax
credits is authorized under Code Section 4-10-720, et seq. This tax is a general sales and
3

The tribal use tax is collected directly by the Catawba Indian tribal government.
The General Assembly may authorize other local sales and use taxes in the future. Unless such legislation
states otherwise, any such new local sales and use tax will be administered and collected in the same
manner as the taxes listed in this advisory opinion. In addition, the Catawba Indian Tribal Sales Tax is not
a local tax; however, it is administered and collected by the Department in a similar manner and is therefore
included on this list.

4

3

use tax on all sales at retail (with a few exceptions) taxable under the state sales and use
tax. This local sales and use tax is imposed to provide a credit against property tax
imposed by a political subdivision for all classes of property subject to the property.
Education Capital Improvement Sales and Use Tax: The school district or school
districts within a county may impose a 1% sales and use tax within the county for specific
education capital improvements for the school district for not more than 15 years. The tax
is authorized under Code Section 4-10-410, et seq. and must be approved by a
referendum open to all qualified electors residing in the county. Pursuant to a
memorandum of agreement, a portion of the revenue may be shared with the area
commission (governing body of a technical college) or higher education board of trustees
(governing body of a public institution of higher learning) or both, for specific education
capital improvements on the campus of the recipient located in the county listed in the
referendum. This tax may only be imposed in counties which have met certain criteria
provided by the statute.
School District Taxes: The General Assembly has authorized certain school districts to
impose a sales and use tax within the county. These taxes are generally imposed to pay
debt service on general obligation bonds and/or the cost of capital improvements.
Catawba Indian Tribal Tax: The application of either the State sales and use tax or the
Catawba Tribal sales and use tax for sales (deliveries) made on the Catawba Indian
Reservation are determined by the Catawba Indian Claims Settlement Act. The specific
sales and use tax provisions can be found in Code Section 27-16-130(H). The Catawba
Indian Reservation is located in Lancaster and York counties. The sales tax is
administered and collected by the Department. The use tax is administered and collected
by the Catawba Indian tribal government.
Tourism Development Tax: The local tourism development sales and use tax is
authorized under Code Section 4-10-910, et seq. This tax is a general sales and use tax on
all sales at retail (with a few exceptions) taxable under the state sales and use tax and may
only be imposed by a municipality located in a county where revenue from the state
accommodations tax is at least $14 million in a fiscal year. This tax may be imposed by
an ordinance adopted by a two-thirds majority of the municipal council or by approval by
a majority of qualified electors voting in a referendum authorized by a majority of the
municipal council. The tax is imposed specifically for tourism advertisement and
promotion directed at non-South Carolina residents; however, in the third and subsequent
years of this tax, a portion of the tax may be used for certain property tax rollbacks.
IV. RETAILER’S RESPONSIBILITY TO REMIT LOCAL SALES AND USE
TAXES:
Retailers who have nexus with South Carolina have nexus for sales and use tax purposes
with all local jurisdictions in South Carolina and must collect and remit to the
Department local sales and use tax for each jurisdiction where their products are
delivered.

4

Nexus is a sufficient connection between a person and a state, and a sufficient connection
between an activity, property, or transaction and a state, that allows the state to subject
the person, and the activity, property, or transaction to its taxing jurisdiction. Nexus can
be established by physical presence or by meeting a certain level of economic activity
within South Carolina. 5
Physical presence can be established by a retailer maintaining a place of business in
South Carolina. This includes any retailer having or maintaining, directly or by a
subsidiary, an office, distribution house, sales house, warehouse or other place of
business, or any agent operating within South Carolina under the authority of the retailer
or its subsidiary, regardless of whether the business or agent is located here permanently
or temporarily or whether the retailer or subsidiary is admitted to do business in South
Carolina.
Economic presence is established when an out-of-state retailer has gross revenue from
sales delivered into South Carolina which exceed $100,000 in the previous calendar year
or the current calendar year. For information on economic nexus standards in South
Carolina for out-of-state retailers, see SC Revenue Ruling #18-14.
V. QUESTIONS & ANSWERS CONCERNING LOCAL SALES AND USE
TAXES:
In-State Retailers – Remittance and Reporting Requirements:

1. Q. When must an in-state retailer collect a jurisdiction's local sales and use tax and
   how must the in-state retailer report sales for purposes of local sales and use
   taxes?
   A. An in-state retailer must collect and remit to the Department local sales or use tax
   for each local jurisdiction where its products are delivered.
   The retailer must report local sales or use tax by jurisdiction of delivery on Form
   ST-389, which is to be attached to the appropriate sales and use tax return, or
   through one of the Department’s electronic filing and payment systems.
   Information as to which type of local sales and use tax must be reported by county
   and municipality and which type of local sales and use tax must be reported only
   by county or only by municipality can be found on Form ST-389 and the
   Department’s electronic filing and payment systems.
   Out-of-State Retailers – Remittance and Reporting Requirements:
2. Q. When must an out-of-state retailer collect and remit a jurisdiction's local sales and
   use tax, and how must the out-of-state retailer report sales for purposes of local
   sales and use taxes?
   5

In accordance with Code Section 12-36-70 and the principles of Wayfair, a remote seller whose gross
revenue from sales delivered into South Carolina exceeds $100,000 in the previous calendar year or the
current calendar year has economic nexus (i.e., substantial nexus) with South Carolina and is responsible
for obtaining a retail license and remitting South Carolina sales and use tax.

5

A. An out-of-state retailer who has nexus with South Carolina must collect and remit
to the Department local sales and use tax for each local jurisdiction where its
products are delivered.
The retailer must report local sales or use tax by jurisdiction of delivery on Form
ST-389, which is to be attached to the appropriate sales and use tax return, or
through one of the Department’s electronic filing and payment systems.
Information as to which type of local sales and use tax must be reported by county
and municipality and which type of local sales and use tax must be reported only
by county or only by municipality can be found on Form ST-389 and the
Department’s electronic filing and payment systems.
Voluntary Collection of State and Local Tax:

3. Q. Must a retailer who has voluntarily registered with the Department (i.e., a retailer
   who does not have either physical or economic nexus, but has obtained a retail
   license) collect and remit both the State and local sales and use tax to the
   Department?
   A. Yes. A retailer who voluntarily registers with the Department (i.e., a retailer who
   does not have either physical or economic nexus, but has obtained a retail license)
   must collect and remit to the Department both State sales and use tax and local
   sales and use tax for each jurisdiction where its products are delivered.
   Purchasers - Reporting Requirements:
4. Q. The liability for a local use tax, as with the state use tax, is on the purchaser.
   However, the retailer is required to collect the sales and use tax from the
   purchaser and to remit the local sales and use tax to the Department if it meets the
   nexus standards outlined in Section IV above. See also Questions #1 through #3
   above for information as to when a retailer is required to remit a local jurisdiction
   tax for tangible personal property delivered in or into a local tax jurisdiction. If
   the retailer does not collect the local use tax from the purchaser, then the
   purchaser must pay the tax directly to the Department on his return.
   In those situations where the retailer does not collect the local use tax, how is the
   purchaser to report the tax?
   Purchases of tangible personal property (not for resale) first stored, used or
   consumed in a local tax jurisdiction are subject to the local use tax. Such
   purchases are to be reported by county and/or municipality where the property is
   first stored, used, or consumed using the applicable form (e.g., ST-389, UT-3) or
   through one of the Department’s electronic filing and payment systems.
   Business or Nonprofit – Licensed Retailer: A business or nonprofit organization
   that is a licensed retailer and that purchases tangible personal property for its own
   use (i.e., not for resale) should report and remit the local use tax on Form ST-389,
   which is to be attached to the appropriate sales and use tax return, or through one
   of the Department’s electronic filing and payment systems.

6

Note: The purchaser is not liable for a jurisdiction's local use tax if he takes
delivery in another jurisdiction and pays the other jurisdiction's local sales tax,
provided the local sales tax he paid is equal to or greater than the local use tax that
would otherwise be due. If the local sales tax he paid is less than the local use tax,
then the purchaser owes the difference. Also, the purchaser is relieved of the
liability for the local use tax if he has a receipt from a retailer showing the retailer
has collected the full local use tax due.
Business or Nonprofit – Not a Licensed Retailer: A business or nonprofit
organization that is not a licensed retailer and that purchases tangible personal
property for its own use (i.e., not for resale) can report the State and local tax as
provided below, based upon the frequency of its out-of-state purchases:

(1) For a purchaser who is not a licensed retailer and who does not regularly
purchase property for its own use from an out-of-state retailer: Use Form
UT-3, “Use Tax Payment Return” to report and remit South Carolina use tax
due on a specific purchase for its own use or the total of all purchases for its
own use made in one month, a calendar quarter, or during the calendar year.
(2) For a purchaser who is not a licensed retailer and who regularly purchases
property for its own use from an out-of-state retailer: (a) obtain a purchaser’s
certificate of registration; and (b) file and make payment using the applicable
form (e.g., ST-3, ST-389) or through one of the Department’s electronic
filing and payment systems.
Note: A purchaser’s certificate of registration for remitting use tax on a periodic
basis may be obtained free of charge by completing Form SCDOR-111, “South
Carolina Department of Revenue Tax Registration Application.”
Individual: An individual can report and remit the State and local use tax in the
following ways:
(1) Using Form SC 1040, “South Carolina Individual Income Tax Return.” An
individual may report his South Carolina use tax due on purchases made during
the year on his individual income tax return when filed.
(2) Using Form SC UT-3, “Use Tax Payment Return.” An individual may
report South Carolina use tax due on a specific purchase or the total of all
purchases made in one month, a calendar quarter, or during the calendar year on
a use tax return. This method is used by an individual who does not have a
South Carolina individual income tax filing requirement for the year, such as a
retiree or student.

Artists, Craftsmen & Transient or Temporary Retailers:

5. Q. How are “artists and craftsmen” licensed under Code Section 12-36-510(A)(2)
   and “transient or temporary” retailers licensed under Code Section
   12-36-510(A)(3) to report their sales?
   7

A. Such retailers are to report their sales on Form ST-389 or through one of the
Department’s electronic filing and payment systems by jurisdiction where
delivery is made. (See Questions #1 and #2.) Information as to which type of
local sales and use tax must be reported by county and municipality and which
type of local sales and use tax must be reported only by county or only by
municipality can be found on Form ST-389 and the Department’s electronic filing
and payment systems.
Withdrawals for Use:

6. Q. Code Section 12-36-110(c) defines "retail sale" to include "the withdrawal, use, or
   consumption of tangible personal property by anyone who purchases it at
   wholesale." How are such "retail sales" to be reported?
   A. These retail sales are to be reported on Form ST-389 or through one of the
   Department’s electronic filing and payment systems by jurisdiction where the
   property is first withdrawn, used, or consumed. Information as to which type of
   local sales and use tax must be reported by county and municipality and which
   type of local sales and use tax must be reported only by county or only by
   municipality can be found on Form ST-389 and the Department’s electronic filing
   and payment systems.
   For additional information about the taxation of “withdrawals for use,” see SC
   Revenue Ruling #08-11.
   Sales Made via Outside Salesmen:
7. Q. How are in-state retailers to report sales made as a result of orders taken by
   outside salesmen?
   A. Such retailers are to report their sales on Form ST-389 or through one of the
   Department’s electronic filing and payment systems by jurisdiction where
   delivery is made. (See Questions #1 and #2.) Information as to which type of
   local sales and use tax must be reported by county and municipality and which
   type of local sales and use tax must be reported only by county or only by
   municipality can be found on Form ST-389 and the Department’s electronic filing
   and payment systems.
8. Q. How are in-state retailers to report sales made by outside salesmen who, at the
   time of taking the order, also deliver the merchandise to the customer?
   A. Such retailers are to report their sales on Form ST-389 or through one of the
   Department’s electronic filing and payment systems by jurisdiction where
   delivery is made. (See Questions #1 and #2.) Information as to which type of
   local sales and use tax must be reported by county and municipality and which
   type of local sales and use tax must be reported only by county or only by
   municipality can be found on Form ST-389 and the Department’s electronic filing
   and payment systems.
   8

9. Q. How are out-of-state retailers who solicit orders via salesmen in South Carolina to
report their sales?
A. Such retailers are to report their sales on Form ST-389 or through one of the
Department’s electronic filing and payment systems by jurisdiction where
delivery is made. Information as to which type of local sales and use tax must be
reported by county and municipality and which type of local sales and use tax
must be reported only by county or only by municipality can be found on Form
ST-389 and the Department’s electronic filing and payment systems.
If the property is delivered into a local tax jurisdiction, then the sale is subject to
the local sales and use tax. If the property is delivered into a jurisdiction that has
not imposed a local tax, then a local sales and use tax is not due. (See Questions

1 and #2.)

“Direct Pay” Certificates:

10. Q. What effect, if any, does the use of a "direct pay" exemption certificate (Code
    Section 12-36-2510) have on the reporting of a local sales and use tax?
    A. By using a so-called "direct pay" certificate, a taxpayer can make all purchases
    tax free and must pay any taxes due directly to the Department. The taxpayer is
    liable for any taxes due and the tax (sales or use) is due upon the property being
    "withdrawn, used, or consumed by the taxpayer." For purposes of a local sales
    and use tax, such withdrawals, use or consumption are reportable on Form ST-389
    or through one of the Department’s electronic filing and payment systems by
    jurisdiction where the property is first withdrawn, used or consumed. Information
    as to which type of local sales and use tax must be reported by county and
    municipality and which type of local sales and use tax must be reported only by
    county or only by municipality can be found on Form ST-389 and the
    Department’s electronic filing and payment systems.

11. Q. For those taxpayers who use a "direct pay" certificate, what is the effect on a local
    sales and use tax if the property is merely transferred from one locale to another?
    By "transferred,” it is meant the property is not withdrawn from inventory for use
    or consumption, but is merely moved from one location to another.
    A. Merely transferring property from one locale to another does not trigger the tax.
    The tax is due when the property is withdrawn, used or consumed by the taxpayer
    and such withdrawal, use or consumption is reportable on Form ST-389 or
    through one of the Department’s electronic filing and payment systems by
    jurisdiction where first withdrawn, used or consumed. Information as to which
    type of local sales and use tax must be reported by county and municipality and
    which type of local sales and use tax must be reported only by county or only by
    municipality can be found on Form ST-389 and the Department’s electronic filing
    and payment systems.

9

“Limited” Exemption Certificates:

12. Q. What effect, if any, does use of a "limited" exemption certificate have on the
    reporting of a local sales and use tax?
    A. Unlike a "direct pay" certificate, which allows the holder to make all purchases
    free of the tax, a so-called "limited" exemption certificate only allows specific
    items, which are exempt under Code Section 12-36-2120, to be purchased
    tax-free.
    If the holder of the limited exemption certificate purchases an item which falls
    within an exemption provided by Code Section 12-36-2120, then the purchase is
    exempt from the state tax and the local sales and use tax.
    However, if the holder uses the certificate to purchase an item not exempt under
    Code Section 12-36-2120, then the holder of the certificate is liable for any tax
    due upon the property being withdrawn, used, or consumed. For purposes of a
    local sales and use tax, such withdrawals, use or consumption are reportable on
    Form ST-389 or through one of the Department’s electronic filing and payment
    systems by jurisdiction where the property is first withdrawn, used or consumed.
    Information as to which type of local sales and use tax must be reported by county
    and municipality and which type of local sales and use tax must be reported only
    by county or only by municipality can be found on Form ST-389 and the
    Department’s electronic filing and payment systems.
    Transactions Not Subject to the Local Sales and Use Taxes:
13. Q. Are there any transactions which are not subject to the local sales and use taxes?
    A. Yes.
    The Department publishes a chart with the various types of local sales and use
    taxes collected by the Department and the exemptions allowed under each tax. As
    of the date of this document, SC Information Letter #18-1 contains the most
    recently published information; updated information will be published in new
    information letters on the Department’s website (dor.sc.gov) as warranted.
    Construction Contracts:
14. Q. How does a local sales and use tax apply to construction contracts?
    A. Each local sales and use tax provides that "[t]he gross proceeds of sales of
    tangible personal property delivered after the imposition date of the [local sales
    and use] tax levied … in a [jurisdiction], either under the terms of a construction
    contract executed before the imposition date, or a written bid submitted before the
    imposition date culminating in a construction contract entered into before or after
    the imposition date are exempt from the local sales and use tax...provided a
    verified copy of the contract is filed with the South Carolina Department within
    six months after the imposition of the local option sales and use tax.”
    10

To apply for the above exemption, use Form ST-10C.
Local Sales Tax:
For those transactions which are not exempt under the above provisions, the local
sales tax is reportable by the contractor's supplier by the local jurisdiction where
the tangible personal property is delivered.
Local Use Tax:
For those transactions which are not exempt under the above provisions, the local
use tax is reportable on Form ST-389 or through one of the Department’s
electronic filing and payment systems by jurisdiction where the property is first
stored, used, or consumed. Information as to which type of local sales and use tax
must be reported by county and municipality and which type of local sales and
use tax must be reported only by county or only by municipality can be found on
Form ST-389 and the Department’s electronic filing and payment systems.
The liability for a local use tax, as with the state use tax, is on the contractor.
However, the supplier is required to collect the sales and use tax from the
contractor and to remit the local sales and use tax to the Department if it meets
certain nexus standards as outlined in Section III above. See also Questions #1
through #3 above for information as to when a supplier is required to remit a local
jurisdiction tax for tangible personal property delivered in or into a local tax
jurisdiction. If the supplier does not collect the local use tax from the contractor,
then the contractor must pay the tax directly to the Department on his return.
Note: The contractor is not liable for a jurisdiction's local use tax if he takes
delivery in another jurisdiction and pays the other jurisdiction's local sales tax,
provided the local sales tax he paid is equal to or greater than the local use tax that
would otherwise be due. If the local sales tax he paid is less than the local use tax,
then the contractor owes the difference. Also, the contractor is relieved of the
liability for the local use tax if he has a receipt from a supplier showing the
supplier has collected the full local use tax due.

15. Q. Code Section 12-36-110(1)(d) includes in the definition of "retail sale" "the use
    within this State of tangible personal property by its manufacturer as building
    materials in the performance of a construction contract."
    How are such businesses, which are generally referred to as “manufacturer/
    contractors,” to report these “retail sales”?
    A. “Manufacturer/contractors” are to report the local sales or use tax on Form ST389 or through one of the Department’s electronic filing and payment systems by
    jurisdiction where the property is used or consumed - the location of the
    construction site. Information as to which type of local sales and use tax must be
    reported by county and municipality and which type of local sales and use tax
    must be reported only by county or only by municipality can be found on Form
    ST-389 and the Department’s electronic filing and payment systems.
    11

Vending Machine Operators:

16. Q. How are businesses that make sales from vending machines to report their sales?
    A. Local Sales Tax:
    Items to be sold from vending machines, except for cigarettes and soft drinks in
    closed containers, purchased from suppliers and subject to the local sales tax
    when delivered to the vending machine operator in or into a local tax jurisdiction
    are the liability of the vending machine operator's supplier. The supplier must
    account for these sales on Form ST-389 or through one of the Department’s
    electronic filing and payment systems by the jurisdiction where the property is
    delivered to the vending machine operator. Information as to which type of local
    sales and use tax must be reported by county and municipality and which type of
    local sales and use tax must be reported only by county or only by municipality
    can be found on Form ST-389 and the Department’s electronic filing and payment
    systems.
    Sales of cigarettes and soft drinks in closed containers are subject to a local sales
    tax upon being sold from the vending machines, if the machines are located in a
    local tax jurisdiction. The liability for the tax is on the vending machine operator
    and he is to account for such sales on Form ST-389 or through one of the
    Department’s electronic filing and payment systems by jurisdiction in which the
    vending machines are located. Information as to which type of local sales and use
    tax must be reported by county and municipality and which type of local sales and
    use tax must be reported only by county or only by municipality can be found on
    Form ST-389 and the Department’s electronic filing and payment systems.
    Local Use Tax:
    Items to be sold from vending machines, except for cigarettes and soft drinks in
    closed containers, which are purchased from suppliers and subject to the local use
    tax are the liability of the vending machine operator. However, the supplier is
    required to collect the sales and use tax from the vending machine operator and to
    remit the local sales and use tax to the Department if it meets certain nexus
    standards as outlined in Section III above. (See also Questions #1 through #3
    above for information as to when a supplier is required to remit a local
    jurisdiction tax for tangible personal property delivered in or into a local tax
    jurisdiction.)
    Note: The vending machine operator is not liable for a jurisdiction's local use tax
    if he takes delivery in another jurisdiction and pays the other jurisdiction's local
    sales tax, provided the local sales tax he paid is equal to or greater than the local
    use tax that would otherwise be due. If the local sales tax he paid is less than the
    local use tax, then the vending machine operator owes the difference. Also, the
    vending machine operator is relieved of the liability for the local use tax if he has
    a receipt from a supplier showing the supplier has collected the full local use tax
    due.
    12

If the supplier (whether in-state or out-of-state) does not collect the local tax from
the vending machine operator (who is liable for the local use tax), or the local
sales tax is not paid, then the vending machine operator is to pay the tax directly
to the Department on his return.
Purchases by the vending machine operator of cigarettes and soft drinks in closed
containers for sale from vending machines are not subject to the local use tax.
The local sales tax is due upon such items being sold from machines located in a
local tax jurisdiction. The liability for the local sales tax is on the vending
machine operator. Again, such sales are to be accounted for on Form ST-389 or
through one of the Department’s electronic filing and payment systems by
jurisdiction where the machines are located. Information as to which type of local
sales and use tax must be reported by county and municipality and which type of
local sales and use tax must be reported only by county or only by municipality
can be found on Form ST-389 and the Department’s electronic filing and payment
systems.
Utilities:

17. Q. How are utilities to report the local sales or use tax?
    A. Utilities must report sales by the jurisdiction in which consumption of the tangible
    personal property occurs. In other words, utilities are to report their sales on
    Form ST-389 or through one of the Department’s electronic filing and payment
    systems by jurisdiction where their customers are located. Information as to
    which type of local sales and use tax must be reported by county and municipality
    and which type of local sales and use tax must be reported only by county or only
    by municipality can be found on Form ST-389 and the Department’s electronic
    filing and payment systems.
18. Q. For purposes of Question #17, what is a "utility"?
    A. A "utility" for the purposes of this advisory opinion is an entity which sells
    products or services subject to the state sales and use tax and transmits or delivers
    its products or services via electronic transmissions or pipelines (i.e., electric and
    gas companies, telephone companies, cable TV companies, satellite TV or radio
    companies, and other communications companies).
    Note: Entities which sell water via pipelines to the public are also "utilities";
    however, their sales are exempt from the state sales and use tax and all local sales
    and use taxes administered and collected by the Department.
    Businesses Which Bill on a Monthly Basis:
19. Q. For those taxpayers who sell and bill their services on a monthly basis (e.g.,
    electric utilities and cable TV companies), when are they to begin reporting the
    local sales or use tax?

13

A. Taxpayers who sell and bill their services on a monthly basis (e.g., electric
utilities and cable TV companies) must report the local tax beginning on the first
day of the billing period beginning on or after the date of general imposition. The
phrase “date of general imposition” means the date the local sales and use tax
becomes effective in a particular jurisdiction.
For example, if an electric power company has a billing period ending May 10,
2018, the first "billing cycle" subject to a local sales and use tax that became
effective on May 1, 2018 would be the period beginning May 11, 2018. The
period May 1st through May 10th would not be subject to the local sales and use
tax.
Leases:

20. Q. If tangible personal property is leased prior to the imposition date of a local sales
    and use tax in a local tax jurisdiction and the lease period extends beyond the
    imposition date, does the local sales or use tax apply to those lease payments
    made after the imposition date?
    A. No. The local sales or use tax would not apply to those lease payments made after
    the imposition date on leases entered into before the imposition date of a local
    sales and use tax. However, if the lease has an optional renewal provision and the
    lessee renews the lease under this option after the imposition date of the local
    sales and use tax, then the local sales and use tax would apply to those lease
    payments made after the renewal.
    Note: For more information concerning leases, see SC Revenue Ruling #91-9.
    Installment Sales:
21. Q. Code Section 12-36-2560, which concerns sales made on an installment basis,
    allows a retailer to elect "to include in the return only the portion of the sales price
    actually received by the retailer during the taxable period or to include the entire
    sales price in the return for the taxable period during which the sale was
    consummated."
    If the retailer has elected to pay the tax as payments are received, are payments
    received after the imposition date of the local sales and use tax subject to the local
    sales or use tax?
    A. For sales made after the imposition date, the local sales or use tax applies to all
    payments received. For sales made before the imposition date, the local sales or
    use tax would not apply.
    See Questions #1 - #4 above for reporting requirements of retailers and
    purchasers.

14

Accommodations:

22. Q. Does a local sales tax apply to charges for accommodations? See Code Section
    12-36-920(A).
    A. Yes. A local sales tax applies to charges for accommodations.
    Note: Since the sales tax is imposed on “accommodations furnished,” the local
    sales tax on accommodations applies to accommodations furnished on or after the
    imposition date of the local sales tax, regardless of when the reservation and/or
    payment was made. For example, if a local sales tax is imposed effective May 1,
    2018, the local sales tax on accommodations applies to accommodations
    furnished on or after May 1, 2018, even if the guest reserved and/or paid for the
    accommodations prior to May 1, 2018.
23. Q. Does a local sales tax apply to "additional guest charges," as defined at Code
    Section 12-36-920(B)?
    A. Yes. A local sales tax applies to charges for "additional guest charges."
24. Q. How are taxpayers who are subject to the sales tax on accommodations and
    "additional guest charges" to report a local sales tax if they own or manage rental
    units in different counties or municipalities?
    A. Taxpayers who are subject to the sales tax on accommodations and "additional
    guest charges" must report separately in their sales tax returns the total gross
    proceeds from business done in each jurisdiction, using Form ST-389 or one of
    the Department’s electronic filing and payment systems. Information as to which
    type of local sales and use tax must be reported by county and municipality and
    which type of local sales and use tax must be reported only by county or only by
    municipality can be found on Form ST-389 and the Department’s electronic filing
    and payment systems.
    Note: For more detailed information as to the application of the state and local
    sales taxes to accommodations and “additional guest charges,” see SC Regulation
    117-307 and SC Revenue Ruling #14-5.
    Credit for Sales and Use Taxes Paid in Another State:
25. Q. May credit be taken against the local use tax for sales and use tax due and paid in
    another state?
    A. Yes. Credit may be taken against the local use tax for sales and use tax due and
    paid in another state, as provided below:
    (1) If the total tax due and paid in another state (state plus local) is less than state
    and local tax due in a South Carolina jurisdiction which has imposed one or
    more local taxes, then the use tax owed in South Carolina is to be allocated to
    the State and to the jurisdiction.
    15

Example: Assume another state has a 5% state tax and a 1% local tax. A
taxpayer makes a purchase in that state with a sales price of $1,000, upon
which the 6% tax was due and paid. The taxpayer stores, uses or consumes
the property in a South Carolina jurisdiction which has imposed a 1% use
tax. As such, the total tax rate in South Carolina is 7% (6% state plus 1%
local). The difference owed in South Carolina (1%) is to be allocated as
follows State portion = 6/7 times 1% times $1,000 =

$ 8.57

Local portion = 1/7 times 1% times $1,000 =

1.43

Total due

$ 10.00

(2) If the total sales and use taxes due and paid in another state (state plus local)
is equal to or greater than the state and local tax due in a South Carolina
jurisdiction, no tax will be due in South Carolina (either state or local).
(3) If the property is stored, used, or consumed in a South Carolina county which
has not imposed a sales and use tax, credit will be allowed against the state
use tax up to the amount of state and local taxes due and paid in the other
state.
Note: If the purchaser takes delivery of tangible personal property in a local tax
jurisdiction and pays that jurisdiction's local sales tax to the retailer, the purchaser
is not liable for the local use tax if the property is first stored, used or consumed in
another local tax jurisdiction, provided the local sales tax he paid is equal to or
greater than the local use tax that would otherwise be due. If the local sales tax he
paid is less than the local use tax, then the purchaser owes the difference. Also,
the purchaser is relieved of the liability for the local use tax if he has a receipt
from a retailer showing the retailer has collected the full local use tax due.
Refunds of State & Local Sales and Use Taxes:
26 Q. If a retailer pays taxes which should not have been paid, who is entitled to a
refund - the retailer or the purchaser?
A. Sale Involving State Sales Tax and Local Sales Tax: If a retailer delivers property
in or into a local tax county, the retailer may receive a refund for the state sales
tax and the local sales tax, if the tax should not have been paid.
Sales Involving State Sales Tax and Local Use Tax: If a retailer has property
delivered into a local tax jurisdiction, the retailer may receive a refund for the
state sales tax, if the tax should not have been paid. The retailer may not,
however, receive a refund for the local use tax.

16

The purchaser is the taxpayer for purposes of the local use tax and is, therefore,
the only one entitled to the refund for the local use tax. To receive the refund, the
purchaser must have documentation showing he has paid the local use tax to the
retailer.
Sales Involving State Use Tax and Local Use Tax: If a retailer has property
delivered into a local tax jurisdiction, the retailer may not receive a refund for the
state use tax or the local jurisdiction use tax, if the tax should not have been paid.
The purchaser is the taxpayer for purposes of the state use tax and the local
jurisdiction use tax and is, therefore, the only one entitled to the refund for the
state and local use taxes. To receive the refund, the purchaser must have
documentation showing he has paid the state and local use taxes to the retailer.
Exceptions: See Code Section 12-60-470(C) for information as to (1) the
authority of a retailer to assign the right to a refund of the state sales tax or the
local sales tax to the purchaser and (2) the authority of a retailer to claim a refund
of the state use tax and the local use tax when (a) the retailer can establish the use
tax has been repaid to the purchaser (from whom the use tax was collected) or (b)
the retailer has obtained the written consent of the purchaser (from whom the use
tax was collected) that allows the retailer to claim the refund of the state use tax
and the local use tax.
How to Request a Refund: Taxpayers who are requesting to a refund of the state
or local sales and use tax may send a letter to:
South Carolina Department of Revenue
Sales Tax Refund Request
P.O. Box 125
Columbia, S.C. 29214-0840
This letter must contain the following information as required by Code Section
12-60-470:
(1) the name, address, and telephone number of the taxpayer;
(2) the appropriate taxpayer identification number or numbers;
(3) the tax period or date for which the tax was paid;
(4) the nature and kind of tax paid;
(5) the amount which the taxpayer claims was erroneously paid;
(6) a statement of facts supporting the taxpayer’s position;
(7) a statement outlining the reasons for the claim, including law or other
authority upon which the taxpayer relies; and
(8) a schedule showing (by month) a breakdown by county and
municipality where the tax was originally reported. This schedule must
also show the type of tax (sales or use) and amount to be refunded.

17

The Department may also require other relevant information depending on the
facts and circumstances.
All refunds are subject to verification by audit, either before or after issuance.
How Taxes Should Be Shown On Billings To Customers:
27.Q. Are retailers required to show the state tax and the local tax separate from the
sales price on billings to their customers?
A. Both the state and local sales taxes are the liability of the retailer. Code Section
12-36-940 allows, but does not require, the retailer to include in the sales price the
amount of the sales tax.
The state and local use taxes are the liability of the purchaser. Code Section
12-36-1350 requires the retailer to "collect the use tax from the purchaser and
give to the purchaser a receipt showing the amount subject to the tax and the
amount of tax collected."
Sales Involving State Sales Tax and Local Sales Tax: A retailer making
deliveries in or into a local tax county is not required to separately show either the
state sales tax or the local sales tax from the sales price on billings to a customer.
The retailer, however, does have the option under Code Section 12-36-940 to
separately show the state sales tax and the local sales tax from the sales price.
Sales Involving State Sales Tax and Local Use Tax: A retailer that ships into a
local tax jurisdiction is not required to separately show the state sales tax from the
sales price. The retailer, however, does have the option under Code Section
12-36-940 to separately show the state sales tax from the sales price.
However, in collecting the local use tax, the retailer is required to separately show
the local use tax from the sales price on billings to a customer.
Sales Involving State Use Tax and Local Use Tax: A retailer that ships into a
local tax jurisdiction is required to separately show the state use tax and the local
use tax from the sales price on billings to a customer. The retailer is not required
to separate the two taxes. The retailer may just show a combined South Carolina
tax was collected.
Special Rules for the Catawba Indian Reservation and the Catawba Tribal Sales
and Use Tax:

28. Q. Since the Catawba Tribal Sales and Use Tax is imposed as a result of the Catawba
    Indian Claims Settlement Act, are there any special rules for sales (deliveries)
    made on the Catawba Indian Reservation?
    A. The application of either the State sales and use tax or the Catawba Tribal sales
    and use tax for sales (deliveries) made on the Catawba Indian Reservation are
    determined by the Catawba Indian Claims Settlement Act. The specific sales and
    18

use tax provisions can be found in Code Section 27-16-130(H). The Catawba
Tribal sales and use tax expires on November 28, 2092.
Code Section 27-16-130(H) states:
(H) The Tribe, its members, and the Tribal Trust Funds are liable for the
payment of all state and local sales and use taxes to the same extent as any other
person or entity in the State, except as specifically provided as follows:
(1) Purchases made by the Tribe for tribal government functions during
ninety-nine years from the effective date of this chapter are exempt from state
and local sales and use taxes.
(2) Catawba pottery and artifacts made by members of the Tribe and sold on
or off the Reservation by the Tribe or members of the Tribe are exempt from
state and local sales and use tax.
(3) During ninety-nine years from the effective date of this chapter, the sale on
the Reservation of all other items, made on or off the Reservation, are exempt
from state and local sales and use taxes but are subject to a special tribal sales
tax levied by the Tribe equal to the state and local sales tax that would be
levied in the jurisdiction encompassing the Reservation but for this
exemption.
(a) The South Carolina sales and use tax laws, regulations, and rulings apply
to the special tribal sales tax, and the special tribal sales tax must be
administered and collected by the South Carolina Tax Commission.
(b) The South Carolina Tax Commission separately shall account for the
special tribal sales tax, and the State Treasurer shall remit the special tribal
sales tax revenues periodically to the Tribe at no cost to the Tribe.
(c) The tribal sales tax does not apply to retail sales occurring on the
Reservation as a result of delivery from outside the Reservation when the
gross proceeds of sale are one hundred dollars or less. If it does not apply,
the state sales tax applies.
(d) The Tribe shall impose a tribal use tax on the storage, use, or other
consumption on the Reservation of tangible personal property purchased at
retail outside the State when the vendor does not collect the tax. However,
use taxes collected by a vendor which is not located in the State are subject
to state use taxes, and the use tax must be remitted to the State and not the
Tribe. Use taxes not collected by the vendor and remitted to the State are
subject to the tribal use tax and must be collected directly by the Tribe.

19

The following chart provides a summary of these provisions:
Delivery on the
Reservation From:

Type Tax Applicable

Administered and
Collected By:

Location On the
Reservation
Location Off the
Reservation But in SC
– Sales $100 or less
Location Off the
Reservation But in SC
– Sales Over $100
Location Off the
Reservation and
Outside the State –
Seller Registered with
DOR
Location Off the
Reservation and
Outside the State –
Seller Not Registered
with DOR

Tribal Sales Tax (Equal to
Combined State and Local Rate)
State Sales Tax (6%) (Local taxes
would not be applicable in these
circumstances.)
Tribal Sales Tax (Equal to
Combined State and Local Rate)

Department of Revenue

State Use Tax (6%) (Local taxes
would not be applicable in these
circumstances.)

Department of Revenue

Tribal Use Tax (Equal to
Combined State and Local Rate)

Catawba Indian Tribe

Department of Revenue

Department of Revenue

Maximum Tax Items: For sales (deliveries) made on the Reservation of tangible personal
property subject to the maximum tax provisions, the tribal sales and use tax rate is 5% in
each county (since the state sales and use tax on maximum tax items is 5% and maximum
tax items are exempt from all local sales and use taxes), but the tax may not exceed the
maximum tax set forth in Code Section 12-36-2110.
Casual Excise Tax Items: Counties imposing a local sales and use tax that do not exempt
casual excise tax items will impose the local tax on sales and purchases of boat motors.
Therefore, for sales (deliveries) of boat motors made on the Reservation within each
county, the tribal sales and use tax rate will depend on the type of local tax imposed in
the respective counties.
Infrastructure Maintenance Fee: For items which are subject to the infrastructure
maintenance fee under Code Section 56-3-627, and thereby exempt from state and local
sales and use tax by Code Section 12-36-2120(83), see SC Revenue Ruling #18-1 and SC
Information Letter #17-10.
Please note that the rate for the tribal sales tax and the tribal use tax may increase
or decrease dependent upon whether the total state and local sales and use tax rates
change in Lancaster county or York county in the future.
For additional information concerning the Catawba Tribal Tax, see SC Revenue
Ruling #98-18.

20

Note: The Department publishes a chart with the various types of local sales and use
taxes collected by the Department and the exemptions allowed under each tax, including
information concerning the Catawba Tribal Tax. As of the date of this document, SC
Information Letter #18-1 contains the most recently published information; updated
information will be published in new information letters on the Department’s website
(dor.sc.gov) as warranted.
Other Information:

29. Q. Do the discount provisions for filing and paying timely (Code Section
    12-36-2610) apply to a local sales and use tax?
    A. Yes.
30. Q. How is the discount amount(s) for timely filing and payment to be computed?
    A. The discount amount is to be computed by applying the appropriate discount rate
    to the total tax due on the return (the state tax combined with the local tax).
31. Q. Is a local sales and use tax to be considered in determining whether or not a
    taxpayer may be permitted to file a quarterly return?
    A. Yes. A local sales and use tax should be considered in determining whether or
    not a taxpayer may be permitted to file a quarterly return. In other words, the
    local tax should be added to the state tax liability.
32. Q. Do the penalty and interest provisions of Chapter 54 of Title 12 apply to a local
    sales and use tax?
    A. Yes.
33. Q. Are the penalties and interest to be applied to a local sales and use tax separately
    from the state tax?
    A. Yes. Penalties and interest are to be applied to a local sales and use tax separately
    from the state tax.
34. Q. Is a local sales and use tax to be considered in computing warrant costs, pursuant
    to Code Section 12-53-40?
    A. Yes.
35. Q. Are warrant costs shared with the counties?
    A. No. Warrant costs are collected from taxpayers for costs incurred by the State in
    collecting warrants and tax executions.

21

Notification of Imposition of a Local Sales and Use Tax:

36. Q. When are those jurisdictions which approve a local tax to notify the Department
    that they have approved the imposition of a local sales and use tax?
    A. The statutes and laws authorizing the various local sales and use taxes require a
    local jurisdiction that has approved the imposition of a local sales and use tax to
    notify the Department by a specified date, depending on the type of local tax.
    Local jurisdictions seeking to impose a local sales and use tax should carefully
    review the statute authorizing the tax for this information. Failure to notify the
    Department will delay the imposition of the tax.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
September 20
, 2018
Columbia, South Carolina

22