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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How did RR 98-18 distinguish South Carolina sales and use tax from the Catawba tribal tax for Reservation transactions?
Sales on the Reservation generally used a special tribal sales tax equal to the otherwise-applicable state and local rate, while off-Reservation sales generally used state and local tax. Tribal-govern…
Did RR 98-17 allow state reimbursement for extra depreciation on manufacturers' machinery in joint industrial parks or fee-in-lieu arrangements?
Yes. RR 98-17 said machinery and equipment in a joint industrial or business park, or under a negotiated fee-in-lieu arrangement, qualified for state reimbursement tied to depreciation above 80 percen…
How did RR 98-16 apply South Carolina sales tax, admissions tax, and alcohol rules to nonprofit fundraising dinners, shows, festivals, and auctions?
Treatment depended on what attendees were paying for, whether a statutory nonprofit exemption applied, who made the sale, and whether alcohol was sold or provided for consideration. A genuine donation…
Under the now-superseded RR 98-15, how did coupons and discount cards change South Carolina's taxable sales price?
Tax was based on what the retailer received from the customer plus any reimbursement tied to that sale. Store-funded coupons and purchase-based supplier allowances reduced the taxable price; manufactu…
Under RR 98-14, could a South Carolina taxpayer deduct commissions paid to a foreign sales corporation instead of treating them as dividend-related expenses?
Yes, if the foreign sales corporation had economic substance and was properly formed and operated under IRC Sections 921-927. RR 98-14 treated the commissions as deductible business expenses, not expe…
Could a licensed South Carolina bingo operation sell a bingo card for more or less than its printed face value under RR 98-13?
No. RR 98-13 said a licensed bingo operation could neither mark a card up nor discount it: every bingo card had to be sold to the player at its printed face value.
When did RR 98-12 treat a resident's or nonresident's boat as subject to South Carolina property tax?
Tax depended on domicile, the boat's December 31 location, whether an absence was temporary, and whether the boat had a more permanent tax situs elsewhere. Business and interstate-commerce boats requi…
How did South Carolina treat a single-member LLC for income tax, corporate license fees, and deed recording fees under RR 98-11?
South Carolina followed the LLC's federal classification. A disregarded LLC was treated as its individual owner's sole proprietorship or its corporate owner's division; an LLC electing corporate treat…
Did PLR 98-3 include a supermarket's purchase-based supplier allowances in taxable gross proceeds when customers used its loyalty card?
No. The supplier allowances were based on the retailer's past purchases or negotiations, not on particular customer sales, so they were outside gross proceeds. Tax applied to the discounted amount the…
What had to be present for a location to qualify as a corporate office facility for South Carolina job-credit and property-tax purposes?
The location needed managerial, professional, technical, and administrative personnel, and it had to perform the listed financial, personnel, legal, technical, support, and other business functions fo…
Were coronary stents, catheters, guide wires, and angioplasty accessories exempt when sold to South Carolina hospitals?
No. The listed coronary stents, catheters, guide wires, and angioplasty accessories were taxable when sold to hospitals. Hospitals consumed them while providing medical services, and a stent was not a…
Who owed South Carolina sales or use tax when a retailer had a manufacturer or distributor drop-ship goods to its customer?
The retailer owed sales tax if engaged in business in South Carolina. A voluntarily licensed remote retailer collected use tax. If the retailer had neither South Carolina business activity nor a licen…
Could South Carolina withhold bingo-tax distributions from an organization it determined was a fictitious charity?
Yes. After properly notifying the organization and explaining its determination, the Department could withhold bingo-tax distributions during the dispute and appeal, seek repayment for periods when th…
Which telephone-company assets qualified for South Carolina's economic-impact-zone investment credit under PLR 98-2?
Qualifying communications assets included switching and terminal equipment, satellite towers, cable, and repair trucks and tools when they met the federal property, depreciation, original-use, and zon…
Were South Carolina timeshare and membership-resort accommodation exchanges subject to accommodations sales tax?
Yes. When South Carolina accommodations were furnished through a membership or timeshare exchange, the provider owed accommodations sales tax on the reasonable rental value of the exchanged stay plus …
Did PLR 98-1 impose South Carolina sales or use tax on a digital imaging company's electronic work for newspaper advertising inserts?
No. On the stated facts, the imaging company produced and transferred images entirely electronically and delivered no tangible personal property in South Carolina, so its charges were not subject to s…
Were utility late-payment fees finance charges excluded from South Carolina taxable gross proceeds under RR 98-4?
No. RR 98-4 treated electric, cable, and telephone late-payment fees as default charges rather than finance charges, so they entered taxable gross proceeds. RR 09-6 later superseded this ruling and ex…
Which limited South Carolina contacts did RR 98-3 say would not, by themselves, create income-tax nexus?
Many isolated contacts did not create income-tax nexus by themselves, including remote product sales, an out-of-state website, South Carolina bank accounts, certain passive loans, temporary purchasing…
Were bank drive-up windows, night depositories, pneumatic systems, and security equipment real or personal property for South Carolina property tax?
They were generally real property. Installed drive-up windows, night depositories, pneumatic systems, and security equipment could be treated as personal property only if removal would not be costly, …
Who counted as an immediate family member for South Carolina property-tax purposes under RR 98-1?
An immediate family member was a relative within the third degree by blood or marriage: parents, children (including adopted children), grandparents, grandchildren, siblings, great-grandparents, great…
Under RR 97-23, was buying a prepaid telephone calling card taxable, and when did tax apply to calls made with it?
The card purchase was not taxable because it represented an intangible future right to telephone service. Under the ruling's 1997 rules, tax arose when the card was used: local South Carolina calls we…
Did RR 97-22 impose South Carolina accommodations tax on membership and timeshare exchanges even when no cash rent changed hands?
Yes. RR 97-22 treated the reciprocal promise to furnish accommodations as taxable consideration and based the tax on reasonable rental value plus reservation, upgrade, or similar fees. RR 98-5 later e…
Could airplanes, trucks, boats, cars, or other mobile property qualify for South Carolina fee-in-lieu-of-property-tax treatment under RR 97-21?
Only if the property stayed at the qualifying project site. Mobile property used both on and away from the site was not considered located in the required county, multicounty park, or contiguous tract…
Could counties share only the revenue from new property in a joint industrial park while excluding revenue from pre-existing property added to the park?
No. Once pre-existing property was incorporated into a joint industrial or business park, its revenue became park revenue and had to be included in the percentage allocation between participating coun…
When did RR 97-20 treat a local fee or tax as part of gross proceeds subject to South Carolina state sales tax?
A local hospitality tax or qualifying local accommodations fee was included in gross proceeds when imposed on the retailer and passed through as the retailer's receipt. It was excluded when imposed on…
When did RR 97-17 require a bingo promoter to hand over session proceeds, and when did the nonprofit have to deposit the proceeds and entrance fees?
The promoter had to deliver net session proceeds to the nonprofit's representative at the end of the session. The nonprofit had to deposit those proceeds and the entrance fees no later than the day af…
Could a nonprofit use the Department's share of bingo-card-charge distributions to pay bingo expenses under RR 97-16?
No. RR 97-16 said the Department's distribution from bingo-card charges had to remain separate and be used for charitable or organizational purposes. Promoter compensation and other reasonable bingo e…
Which South Carolina activities did RR 97-15 treat as protected or unprotected under Public Law 86-272?
RR 97-15 protected solicitation of orders for tangible personal property when orders were approved and filled from outside South Carolina, together with activities entirely ancillary to that solicitat…
Did PLR 97-6 impose South Carolina sales tax on mobile homes sold with the land as part of a mobile home park?
No. The mobile homes were fixtures and therefore real property because their wheels were removed, they sat on permanent foundations, they were connected to utilities, and their porches, additions, and…
What general filing and payment-lookback limits did SC Revenue Ruling 97-14 apply to state tax refund claims?
RR 97-14 generally required a refund claim by the later of three years after a timely return was filed or two years after payment; if no timely return supported the three-year rule, the two-year payme…
How did PLR 97-5 tax commercial security monitoring when equipment was sold or separately rented, and how were installation and repairs treated?
Monitoring fees were not taxable communications charges. Equipment sold to the customer was taxable, and a separately stated periodic charge for provider-owned equipment was a taxable rental. Reasonab…
How did PLR 97-4 tax residential alarm monitoring, provider-owned standard equipment, customer-owned add-ons, installation, and repairs?
Periodic charges for the provider-owned standard package and burglary/fire monitoring were not taxable because the true object was a nontaxable monitoring service, so the provider paid tax when buying…
Was a mandatory city or county tax included in the amount subject to South Carolina admissions tax under RR 97-13?
Yes. RR 97-13 said a mandatory local tax paid as part of entering or using a place of amusement was included in 'paid admissions' and subject to state admissions tax, whether the city or county impose…
Which aircraft-fuel tax receipts did RR 97-12 treat as the tax on aviation gasoline credited to South Carolina's Aviation Fund?
RR 97-12 said the relevant tax was South Carolina sales and use tax and credited it to the State Aviation Fund only for gasoline meeting the cited aviation-gasoline specifications. Tax on jet fuel and…
What bingo-paper controls did South Carolina Revenue Ruling 97-11 require beginning October 1, 1997?
RR 97-11 required approved bingo paper with a printed face value or approved color-code equivalent, controlled serial numbers, complete-set sales, and a South Carolina emblem distributed only through …
Were city or county cable-franchise fees included in taxable gross proceeds when passed through to South Carolina cable customers?
Yes. RR 97-10 said a city or county cable-franchise fee calculated as a percentage of the cable system's gross receipts was included in taxable gross proceeds, whether the customer bill stated the fee…
Could reinstated or related nonprofit organizations immediately qualify for separate South Carolina bingo licenses under RR 97-9?
Not automatically. A reinstated organization's South Carolina domicile could remain uninterrupted, but it still had to be active and operated for qualifying nonprofit purposes for the three years imme…
Did RR 97-7 require a South Carolina resident partner to report personal-service income earned by the partnership in other states?
Yes. A South Carolina resident partner had to report the full distributive share of personal-service income from all states, not only the South Carolina-apportioned amount, with a credit for qualifyin…
Under the superseded RR 97-6, what material-handling equipment and investments qualified for South Carolina's sales-tax exemption?
The exemption covered systems, equipment, racks, and repair parts used in distribution or manufacturing facilities when the taxpayer gave advance notice and invested at least $35 million in South Caro…
Which South Carolina tax benefits did PLR 97-2 approve for an integrated expansion of a certified qualified recycling facility?
The Department approved the integrated, recertified addition for the 30% recycling-property investment credit, conditional fee-in-lieu treatment, the taxpayer's existing separate-accounting method, an…
Under RR 97-5, how much South Carolina sales tax did a nonresident owe when buying a travel trailer?
With the required notarized form, tax was the lesser of the buyer's home-state tax or South Carolina's then-applicable amount: 5% of price after trade-in or $300. No South Carolina tax was due if the …
Under the superseded RR 97-3, how were hotel room charges, mandatory fees, optional guest services, and tourist packages taxed?
Room charges and mandatory customary services generally used the ruling's 7% accommodations rate. Optional services often used a 5% guest-charge rate or another tax rule. RR 98-21 expressly superseded…
Under the superseded RR 97-1, when did firefighting equipment share a fire truck's $300 maximum sales or use tax?
Equipment shared the truck's $300 cap only when necessary for it to be a fire truck, sold by the same vendor, and mounted or stowed before the buyer took title or possession. Otherwise the equipment w…
How did SC Revenue Ruling 96-11 apply the utility license-tax credit for cash infrastructure contributions?
Under the 1996 ruling, a company subject to the Section 12-20-100 utility license tax could claim a credit for cash paid toward qualifying public-purpose infrastructure. A project needed to be eligibl…
Was interest from qualifying loans to a South Carolina business development corporation exempt from state income tax under RR 96-10?
Yes. Interest on loans made to a South Carolina business development corporation in accordance with Sections 33-37-250 and 33-37-460 was exempt from South Carolina income tax because Section 33-37-70 …
Did RR 97-8 require a taxpayer to qualify as an 'economic impact zone business' before claiming the zone investment tax credit?
No. RR 97-8 said the separate 'economic impact zone business' definition did not limit the investment credit. Eligibility turned on qualifying property being placed in service in an economic impact zo…
How did RR 96-9 administer the historical 1% Cherokee County school sales and use tax beginning July 1, 1996?
The 1% tax applied countywide from July 1, 1996. Retailers in Cherokee County owed sales tax on covered property delivered there, while property delivered into the county could create purchaser use ta…
When did superseded RR 96-8 include a city or county tourism or restaurant fee in taxable gross proceeds?
A fee imposed on the restaurant or hotel was the retailer's receipt and expense, so an amount recovered from the customer entered taxable gross proceeds. A fee legally imposed on the customer was excl…
When did superseded RR 96-7 exempt a federal employee's South Carolina hotel stay from accommodations sales tax?
The stay was exempt only when the federal government directly purchased it—through direct billing, a government check, or a qualifying centrally billed government card. An employee-paid stay was taxab…
Who qualified for the historical $5-per-work-day firefighter and EMS subsistence deduction under RR 96-5, and which days counted?
Paid, certified full-time firefighters and EMTs, EMT-intermediates, or paramedics providing ambulance-type emergency service could deduct $5 for each regular work shift longer than six hours. On-duty …
Did RR 96-3 impose South Carolina sales or use tax when software was delivered entirely by modem and telephone line with no physical media?
No. Software delivered entirely by modem and telephone line, with no diskette, tape, or other physical copy, was intangible software rather than taxable tangible personal property. The transmission sy…
How did superseded RR 96-2 classify amusement machines, video games, free-play devices, and game tables for South Carolina license tax?
RR 96-2 assigned historical Type I, II, or III licenses based on the device's function, payment slot, video display, and free-play feature, while specified for-profit physical game tables followed the…
Did RR 96-1 continue the full disability-retirement income exclusion after benefits converted to a regular retirement plan?
No. Once benefits changed from a disability retirement plan to a regular retirement plan—whether the change was mandatory or optional—the full disability-retirement exclusion no longer applied. The re…
How did RR 95-18 treat current-year property taxes in a South Carolina delinquent-tax sale and redemption?
RR 95-18 required the forfeited land commission's minimum bid to include taxes levied for the year the redemption period began. A sale had to wait until those taxes could be computed. A redeemer paid …
Did a late South Carolina withholding-tax deposit trigger interest before the quarterly return due date under RR 95-17?
Not by itself. RR 95-17 said interest began only when withholding tax remained unpaid after the quarterly return due date. The Department could still impose a discretionary $10-to-$1,000 penalty for a…
How did RR 95-16 direct admissions-tax revenue from major South Carolina tourism or recreation facilities?
RR 95-16 applied to qualifying tourism or recreation facilities with at least $20 million invested within five years. One-fourth of admissions tax went to the county or municipality and one-fourth to …
Could a South Carolina taxpayer amend a return to change the historical retirement-income deduction election under RR 95-15?
Sometimes. RR 95-15 treated the election to defer deductions until the applicable retirement age for a later $10,000 annual deduction as irrevocable. A taxpayer who chose the $3,000 annual deduction c…
Did South Carolina follow federal nonrecognition treatment for the bank holding-company reorganization described in PLR 95-10?
Yes. For the addressed merger, South Carolina followed federal tax treatment for the bank, interim corporation, holding company, and shareholders under the specifically listed reorganization provision…
How did PLR 95-9 apportion trademark royalties earned by a South Carolina licensing subsidiary?
The addressed subsidiary used the historical gross-receipts formula. Its numerator included royalties from the licensee's sales delivered to customers in South Carolina, and its denominator included r…
Were ABC's purchases of parts and materials for temporary dual-vacuum extraction systems exempt when the systems cleaned soil and groundwater pollution caused by manufacturing machines?
Yes, for ABC's stated facts and only if every requirement of Regulation 117-173 was met. The systems removed water, vapor, and contaminants caused by machines manufacturing tangible personal property …
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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.