South Carolina State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in South Carolina, with full citations and the original source on every page.
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What South Carolina sales-tax exemptions were available to motion picture companies under RR 05-7?
A certified production expecting at least ,000 of South Carolina spending within 12 months could exempt qualifying in-state production expenditures from state and Department-administered local sales a…
How did RR 05-6 tax a vacation-rental provider's optional or mandatory hurricane-protection charge?
If lodging was furnished for any part of the reserved period, optional hurricane protection was taxed at the historical 5% additional-guest-charge rate, while a mandatory charge was part of lodging ta…
Were charges for printed or online medical records and related retrieval fees taxable in SC PLR 05-2?
Yes, for the taxpayer and facts in this PLR. Printed medical-record copies were taxable tangible personal property, and Quickview online access was a taxable communications service. Retrieval, per-pag…
What counted as an expansion for South Carolina job-tax-credit eligibility under RR 05-5?
An expansion could be physical growth of a qualifying facility, capital investment that required new employees, or a qualifying increase in full-time jobs. Ordinary repairs or upgrades did not count a…
How did RR 05-4 historically tax sales and leases of trailers, semitrailers, and pole trailers?
South Carolina residents generally owed sales or use tax. Certain recreational trailers, truck-tractor-only trailers and semitrailers, and horse trailers qualified for the historical $300 maximum tax;…
Which federal income-tax changes had South Carolina adopted for 2004 and early 2005 under temporary RR 05-2?
South Carolina generally conformed to the Internal Revenue Code only through the dates specified by its temporary 2004 budget proviso, with state exceptions. The ruling required state adjustments for …
Which fuel sales counted as aviation gasoline whose South Carolina sales and use tax was credited to the State Aviation Fund?
Qualifying fuel included aviation gasoline meeting ASTM D 910 and civil aviation turbine fuel meeting ASTM D 1655, but the sales and use tax was credited to the State Aviation Fund only when the fuel …
Were radioactive seeds sold to medical providers for prostate-cancer brachytherapy exempt from South Carolina sales tax?
Yes, for the taxpayer and facts in this PLR. Radioactive seeds sold to hospitals, medical centers, and practitioners for prostate-cancer brachytherapy were exempt therapeutic radiopharmaceuticals. The…
Was a retailer's fuel surcharge for delivering taxable merchandise in its own vehicle subject to South Carolina sales and use tax?
Yes, when the underlying merchandise was taxable. A fuel surcharge charged for delivery in the retailer's own vehicle was part of gross proceeds or sales price, so the tax base included the merchandis…
Was computer equipment leased to the federal government under a lease-to-own financing plan subject to South Carolina property tax?
No. Because the lease-to-own arrangement was treated as a sale and the federal government as the income-tax owner, South Carolina treated the equipment as federal property immune from ad valorem prope…
Which communications and online services did South Carolina treat as taxable under RR 04-15?
The ruling taxed charges to access or use many voice, message, programming, email, website, and database systems, while excluding specified data processing, cooperative databases, and statutory servic…
Could a buyer of an exempt South Carolina facility continue the seller's property-tax exemption or receive a new five-year exemption?
Yes, if the county approved, the buyer was unrelated, the sale was arm's length, and the buyer preserved the facility and jobs. A new five-year exemption also required the buyer to satisfy the facilit…
When did South Carolina collect casual excise tax or use tax on historical vehicle, boat, motor, airplane, and trailer transfers?
Casual excise tax generally applied at titling after a non-retailer sale of a vehicle, motorcycle, boat, motor, or airplane; use tax generally applied to out-of-state retailer purchases for South Caro…
When did RR 04-12 treat rentals of a small vacation home, second home, or owner-occupied bed-and-breakfast as taxable accommodations?
Short rentals were taxable when the property was not the owner's place of abode. A rental to the same person for at least 90 continuous days was not transient lodging, and rooms in an owner-occupied h…
What design, sale, approval, and recordkeeping standards did South Carolina set for electronic bingo tickets?
Electronic bingo used a Department-approved, perforated two-part ticket sold at face value through licensed manufacturers and distributors. Each ticket needed prescribed identifiers, matching player a…
Did South Carolina treat a jet ski as a boat eligible for the maximum sales and use tax under RR 04-10?
Yes. The ruling classified a jet ski or other qualifying personal watercraft as a boat and applied the then-current $300 maximum tax. RR 18-4 expressly superseded it and updated the maximum to 5% capp…
Were materials bought by contractors and subcontractors for a federal construction project exempt from South Carolina sales tax?
A prime contractor's qualifying purchases were exempt when its written federal contract required the property to pass to the government. Subcontractor purchases were taxable unless a documented agency…
How did South Carolina tax nonprofit fundraising dinners, entertainment, alcohol, and auctions under RR 04-8?
Tax depended on what attendees were really paying for and whether a specific exemption applied. True donations could be nontaxable, while meals, admissions, drinks, and auction sales could be taxable.…
Was XYZ's tear-duct implant sold to an ophthalmologist exempt as a prosthetic device in SC PLR 04-5?
No exemption applied. The tear-duct implant was taxable because it prevented drainage and restored a function but did not replace a missing part of the body, as South Carolina's prosthetic-device defi…
Was ABC Gas Company's recurring charge for a company-owned LP gas storage tank subject to South Carolina sales tax?
Yes. When ABC owned the LP gas tank, the recurring maintenance and upkeep fee was effectively rent for the customer's possession and use of tangible personal property, so it was subject to sales tax.
Which machines and related items qualified for South Carolina's manufacturing sales-tax exemption under RR 04-7?
A machine qualified when it was integral and necessary to making tangible personal property for sale and was substantially used in that process. Buildings, storage, administration, and general mainten…
Were printed materials transferred between related companies taxable when payment occurred only through internal accounting entries?
Yes when the printed materials were delivered in South Carolina. The companies' accounting entries established consideration even without a paper invoice or cash transfer. Seller-required delivery out…
How did South Carolina Revenue Ruling 04-6 apply the deed recording fee to common real-estate transfers?
This historical ruling applied a $1.85 fee per $500 or fraction of $500 of realty value and answered 59 transaction questions. RR 15-3 expressly superseded it, and RR 24-1 now incorporates the January…
Does a South Carolina medical professional charge sales tax for copies of a patient's medical records?
Usually not when the medical professional provides the copies to a patient as part of medical services. Copies sold to a third party were exempt only when the transaction qualified as a casual or isol…
Could a practitioner charge a contingent fee for South Carolina tax-return or refund-claim work?
Not for preparing or advising on an original return. The ruling allowed a contingent fee for an amended return or refund claim only when the practitioner reasonably expected substantive review by the …
Can a buyer avoid South Carolina's tax lien on transferred business assets by obtaining a transferor affidavit?
Yes, in limited cases. A buyer receiving no business assets or less than a majority by fair market value could use a transferor affidavit valid for 30 days; a majority-business-asset transfer generall…
When were South Carolina hotel stays for government, diplomatic, credit-union, nonprofit, or Red Cross travelers exempt?
Direct federal-government, federal-credit-union, American Red Cross, and qualifying diplomatic purchases could be exempt, while an employee-paid stay reimbursed later was generally taxable. State-gove…
Were ABC's separately stated dumpster delivery, daily rent, dumping, disposal, and fuel charges taxable in SC PLR 04-2?
No, for ABC's stated full-service operation. Customers were buying construction-waste hauling and disposal, not renting the container, so all listed charges were nontaxable service charges. A containe…
Were ABC's healthcare claims, patient-statement, network, and compliance-software charges taxable in SC PLR 04-1?
No, for ABC's stated customer-specific processing. Claims, statements, archives, network access, and compliance tools qualified as excluded data processing when the information remained tied to the su…
Which state, local, and foreign tax deductions had to be added back when computing South Carolina taxable income under RR 03-6?
South Carolina denied deductions for state and local income taxes, franchise taxes measured by net income, and other taxes measured by or with respect to net income. The ruling classified selected tax…
How did South Carolina classify tangible and electronic software, ASP access, and software maintenance under RR 03-5?
Software delivered by tangible media was taxable, while a completely electronic remote transfer was generally nontaxable if no tangible copy or update was provided. Hosted ASP access was taxable commu…
Which activities did RR 03-4 analyze as creating South Carolina income tax nexus for an out-of-state corporation?
The ruling gave fact-specific yes, no, or qualified answers for more than 100 activities involving property, sales, employees, contractors, delivery, finance, and printing. Each answer assumed that ac…
When did a retailer with South Carolina nexus collect tax on a gift shipped between South Carolina and another state?
Delivery generally controlled. A retailer with South Carolina nexus collected tax when the gift was delivered to the buyer or recipient in South Carolina. Seller-required shipment to a recipient outsi…
Which medicines, prosthetic devices, diabetic supplies, and other medical products did RR 03-2 treat as exempt from South Carolina sales tax?
Exemption depended on the product, prescription, purchaser, and use. Medical providers were generally taxable users of supplies furnished with care, while specified prescription medicines, prosthetics…
Was a South Carolina Universal Service Fund surcharge passed through on a telephone bill subject to sales and use tax?
Generally yes. A telephone company that passed through its Universal Service Fund expense included the surcharge in taxable communications gross proceeds. The portion tied to exempt or nontaxable tele…
Was a hospital ventilator system exempt as a prosthetic device sold by prescription?
No. The Department found that the ventilator was hospital medical equipment, not an artificial device replacing a missing body part, and its sale was not exempt as a prosthetic device sold by prescrip…
Was a separately charged DSL service used only for Internet access taxable during the federal Internet-tax moratorium addressed in PLR 03-2?
No, for the historical period addressed. The Department did not impose sales or use tax on the described DSL Internet-access charges from October 1, 1998 through November 1, 2003 because of the federa…
How did South Carolina apportion a corporation's royalty income from licensing FCC intangibles?
The corporation used South Carolina's single-factor gross-receipts method. On the stated facts, royalties from FCC licenses used to serve markets outside South Carolina were sourced outside the state,…
What bingo-paper standards did South Carolina Revenue Ruling 99-13 require beginning January 1, 2000?
Beginning January 1, 2000, bingo paper had to show its face value, use controlled serial numbers, be sold in complete approved sets, and carry an approved South Carolina emblem. Color-coded paper coul…
Were supplier allowances funding XYZ's discount-card prices included in taxable gross proceeds?
No. Supplier allowances based on XYZ's past purchases, negotiations, market share, or similar factors were not taxable gross proceeds because they were not earned from particular customer sales. Sales…
Which delinquent South Carolina taxes could be paid by credit card under RR 99-12, and how?
Under the 1999 procedure, any tax type could be paid by credit card only after the Department assigned a receivable or tax-lien number. Visa or MasterCard payments went through the telephone TAPS syst…
Which per-capita income figures applied to South Carolina job and headquarters credit compensation tests under RR 99-11?
Taxpayers had to use the most recent state or county per-capita income data available on the last day of the tax year in which the qualifying jobs were filled. RR 99-11 supplied the figures available …
How did coupons and discount cards affect South Carolina's taxable sales price under RR 99-9?
Tax applied to everything the retailer received from the customer and a manufacturer for the sale. A retailer-funded coupon reduced the taxable price, while a manufacturer-reimbursed coupon generally …
How did South Carolina's repealed motion-picture project and production-facility credits work under RR 99-10?
The repealed statute allowed a 33% credit for qualifying cash investment in a South Carolina film project, capped at $15,000 per project, and a separate 33% facility-investment credit capped at $5 mil…
Were ethylene concentrate and generators used to ripen produce at warehouses exempt from South Carolina sales and use tax?
No. Ethylene concentrate sold for produce warehouses and generators bought for their use were taxable because the warehouses were distribution or storage facilities, not processing facilities. The rul…
Was XYZ Corporation's equipment sale-and-leaseback a taxable lease or a nontaxable financing arrangement?
It was a nontaxable financing arrangement, not a true sale and lease. The customer never gave up possession or ownership responsibilities, the payments followed a principal-and-interest schedule, and …
When were federal employee credit-card purchases exempt from South Carolina sales tax under RR 99-8?
A purchase was exempt when the federal government was directly billed or paid by government check. It was taxable when the employee was personally billed and later reimbursed, because the sale was to …
Were XYZ, Inc.'s sales of feed used for horses exempt from South Carolina sales and use tax?
Yes. The Department concluded that XYZ, Inc.'s sales of feed used for horses were exempt from South Carolina sales and use tax because horses are livestock. It advised obtaining and retaining a signed…
Did offering an over-limit video-game-machine jackpot count as a prohibited inducement under SC RR 99-7?
No. The ruling said an excessive jackpot was not a prohibited special inducement and carried no specific criminal penalty under the Video Game Machines Act, but an excessive payment could trigger a $5…
Which infrastructure costs qualified for South Carolina's utility license-tax credit under RR 99-6?
The historical credit covered cash paid for specified public-serving water, sewer, utility, communications, and fixed transportation infrastructure for an eligible project, but not facilities the payi…
How did South Carolina Revenue Ruling 99-5 compute and claim the job tax credit?
The ruling compared the taxpayer's monthly average full-time employment with the prior year, rounded the increase down to whole jobs, applied the county's historical per-job amount, and allowed qualif…
Under South Carolina's 1999 guidance, who qualified for the refundable college tuition tax credit and how was it calculated?
An eligible student or qualifying dependent claimant could receive 25% of qualifying tuition after scholarship grants, capped under the ruling at $850 for four-year study or $350 for two-year study. T…
When did South Carolina Revenue Ruling 99-3 exempt a farm trailer from sales and use tax?
A flatbed or stock trailer qualified only when used substantially, not merely incidentally, to plant, cultivate, or harvest farm crops sold in their original state. Use only for cattle, equipment, or …
Does an IRC Section 1031 real-estate exchange avoid South Carolina's deed recording fee?
No. A Section 1031 exchange is still a transfer for consideration subject to South Carolina's deed recording fee unless a statutory exemption applies. Each deed is tested separately, including deeds t…
How did South Carolina Revenue Ruling 99-1 compute a school district's index of taxpaying ability?
The Department converted each district's taxable property and retained fee payments into fiscal capacity, adjusted specified real-property values through sales ratio studies, and divided that district…
Under RR 98-23, who could protest a South Carolina beer, wine, minibottle, or retail liquor license, and what made the protest valid?
A county resident or person living within five miles could file a written, timely protest with the required applicant, location, reasons, and hearing-attendance statement. A protest declining a hearin…
Did PLR 98-4 exempt propane and a filled tank sold for a barbecue grill at a South Carolina residence?
Yes. Propane sold for an outdoor grill at a person's residence was exempt as residential fuel, and a filled tank was incidental to that exempt sale. Propane for a nonresidential location and an empty …
Under the now-superseded RR 98-21, how were hotel room charges, mandatory fees, optional services, packages, and cancellations taxed?
Room charges and mandatory services generally used the ruling's 7% accommodations rate. Optional guest services often used a 5% additional-guest-charge rate or another sales-tax rule. RR 14-5 expressl…
Under the now-superseded RR 98-20, when was kerosene subject to South Carolina motor-fuel tax?
RR 98-20 imposed motor-fuel tax when kerosene was delivered into a highway vehicle's fuel tank or blended with undyed diesel fuel or gasoline. RR 18-3 expressly superseded and updated this ruling.
Under RR 98-19, did South Carolina's manufacturing exemption cover computers and machines used in CAD, CAM, or integrated CAD/CAM systems?
Design-only CAD equipment was taxable because design preceded production. CAM equipment used in manufacturing goods for sale was exempt. Integrated systems were divided by function, and a dual-use mac…
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These are official tax letter rulings and advisory opinions issued by South Carolina's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.