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 is South Carolina's state per capita income figure for tax-incentive purposes (per SC IL #22-5)?
South Carolina's most recent state per capita personal income figure is $52,074, per SC Information Letter #22-5 (March 24, 2022). Several income, sales and use, and property tax incentives require th…
How do South Carolina pass-through entities and owners report the new entity-level active trade or business income election on 2021 tax forms?
SC Information Letter #22-4 gives filing-season guidance for South Carolina's new entity-level active trade or business income (ATBI) election for tax year 2021. Under Code Section 12-6-545(G), certai…
How are South Carolina micro-distillery tours and liquor tastings taxed — the tour charge, the tasting, and giveaways?
After a 2021 law change (effective May 17, 2021), a South Carolina micro-distillery may NOT charge for the liquor consumed at a tasting, but MAY charge for the tour that goes with it. The tour charge …
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning April 1, 2022 (per SC IL #22-3)?
4%. SC Information Letter #22-3 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2022 through June 30, 2022, up from 3% for the prior period (Jul…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through December 31, 2021?
Use the subject index attached to SC Information Letter #22-2. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through December 31, 2021 under administrative, alco…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through December 31, 2021?
Use the citator attached to SC Information Letter #22-1. It lists South Carolina Department of Revenue advisory opinions from 1987 through December 31, 2021 that the Department identifies as modified,…
How long did South Carolina extend its COVID-19 remote-work nexus and withholding relief in December 2021?
SC Information Letter #21-31 extended through March 31, 2022 the temporary COVID-19 relief originally stated in SC Information Letter #20-11. Under that relief, a business did not establish South Caro…
What South Carolina tax interest rate applied from January 1 through March 31, 2022?
The listed South Carolina tax interest rate was 3% for January 1 through March 31, 2022. It applied to tax underpayments and overpayments and was compounded daily, except simple interest applied to un…
What were South Carolina's 2022 job-credit county tiers, moratorium counties, and reduced fee counties?
SC Information Letter #21-28 publishes South Carolina's 2022 county designations for the job tax credit, tax moratorium, and reduced fee-in-lieu investment. The Tier IV counties were Allendale, Bamber…
What state and county per capita income figures did South Carolina publish in December 2021?
SC Information Letter #21-27 reports South Carolina state per capita personal income of $48,021 and lists a figure for each county. The Department publishes these figures because several income, sales…
If my South Carolina plant is contractually obligated to deliver the goods to my customer at a point outside the state, do I owe South Carolina sales tax on that sale?
No. Under S.C. Code § 12-36-2120(36), a sale of tangible personal property is exempt from South Carolina sales tax when the seller, by the contract of sale, is obligated to deliver the goods to the bu…
When are eyeglasses and eye-care charges taxable in South Carolina?
An optician's retail sale of prescription eyeglasses is taxable on total gross proceeds, including insurance payments. An ophthalmologist's or optometrist's professional charges to a patient—including…
What South Carolina retirement, age-65, and military-income deductions applied under the law addressed by RR 21-13?
Under the pre-2022 law addressed by RR 21-13, an original retirement-account owner could deduct up to $3,000 of qualified retirement income before age 65 or $10,000 at age 65 and older. A South Caroli…
Where was the Department's index of South Carolina advisory opinions through September 30, 2021?
SC Information Letter #21-26 attaches the Department's index of South Carolina advisory opinions issued from 1987 through September 30, 2021 and supersedes SC Information Letter #21-21. The index cata…
How could taxpayers check the status of South Carolina advisory opinions through September 30, 2021?
SC Information Letter #21-25 attaches the Department's citator for advisory opinions issued from 1987 through September 30, 2021 and supersedes SC Information Letter #21-20. It identifies opinions kno…
Can South Carolina's retirement income deduction be claimed on a COVID-related retirement plan distribution under the CARES Act, and what happens if the distribution is repaid?
Yes. A COVID-related (coronavirus-related) distribution from a qualifying retirement plan under CARES Act Section 2202 can qualify for South Carolina's retirement income deduction — up to $3,000 for a…
What major South Carolina tax-law changes did the 2021 legislative session make?
SC Information Letter #21-24 summarizes major South Carolina tax and regulatory changes enacted in 2021. Act 87 updated state conformity to the Internal Revenue Code through December 31, 2020, while l…
What South Carolina tax interest rate applied from October 1 through December 31, 2021?
The listed South Carolina tax interest rate was 3% for October 1 through December 31, 2021. It applied to tax underpayments and overpayments and was compounded daily, except simple interest applied to…
How long did South Carolina extend its COVID-19 remote-work nexus and withholding relief in August 2021?
SC Information Letter #21-22 extended through December 31, 2021 the temporary COVID-19 relief originally stated in SC Information Letter #20-11. Under that relief, a business did not establish South C…
Where was the Department's index of South Carolina advisory opinions issued through June 30, 2021?
SC Information Letter #21-21 attaches the Department's index of South Carolina advisory opinions issued from 1987 through June 30, 2021 and supersedes SC Information Letter #21-10. The index catalogs …
How could taxpayers check the status of South Carolina advisory opinions through June 30, 2021?
SC Information Letter #21-20 attaches the Department's citator for advisory opinions issued from 1987 through June 30, 2021 and supersedes SC Information Letter #21-9. It identifies opinions known to …
What South Carolina tax interest rate applied from July 1 through September 30, 2021?
The listed South Carolina tax interest rate was 3% for July 1 through September 30, 2021. It applied to tax underpayments and overpayments and was compounded daily, except simple interest applied to u…
Could a South Carolina retail beer-and-wine permit holder continue curbside sales to a customer who stayed in a vehicle after the COVID state of emergency ended?
No. After the COVID-19 state of emergency ended on June 6, 2021, South Carolina reinstated Regulation 7-702.5. The regulation prohibited a retail beer or wine permit holder, employee, or agent from se…
How does South Carolina's Catastrophe Savings Account work — who can open one, how much is deductible, and when are withdrawals taxed?
A Catastrophe Savings Account (CSA) lets a South Carolina homeowner set aside money — with a state income tax deduction — to cover a homeowner's-insurance deductible and uninsured storm losses to thei…
Which purchases and sales by beekeepers are exempt from South Carolina sales and use tax, and what exemption certificates do beekeepers use?
Many of a beekeeper's purchases are exempt as agricultural inputs, but some are not. Because beekeeping is part of the agricultural industry (and beekeepers also 'process' honey), commercial beekeeper…
When is a military servicemember's spouse exempt from South Carolina income tax on wages earned in South Carolina, and how do they claim it?
A military servicemember's spouse is NOT taxed by South Carolina on the personal-service income (wages, salary, self-employment service income) they earn in South Carolina if three things are true: (1…
When someone comes to South Carolina to make a one-time sale of an airplane or boat, does South Carolina sales tax or casual excise tax apply?
It turns on whether the SELLER is in the business of selling. When a seller comes to South Carolina for the sole purpose of a one-time retail sale of an airplane or boat and the buyer takes possession…
How does South Carolina's discount for timely filing and paying sales and use tax work — how much is it, what's the cap, and which returns qualify?
South Carolina rewards on-time filers with a discount off the sales and use tax they remit. Under Code Section 12-36-2610, when a required sales or use tax return is filed AND the tax is paid in full …
When are optional equipment warranties and repair-part withdrawals taxable in South Carolina?
For the requesting medical-equipment manufacturer, an optional extended warranty sold as part of the equipment sale is taxable as part of gross proceeds or sales price, even if billed later. A separat…
How did South Carolina increase the statewide Community Development Tax Credit limit for 2021 and later years?
Act No. 83 added $3 million to the aggregate Community Development Tax Credit limit. Up to $1 million of the new amount could support credits earned and certificates issued in tax year 2021, while the…
Did South Carolina exclude the first $10,200 of 2020 unemployment compensation from state income tax, and is unemployment taxable after 2020?
Yes, for tax year 2020 only. SC Information Letter #21-14 announces that South Carolina adopted the federal exclusion of the first $10,200 of unemployment compensation per person from taxable income f…
Is South Carolina's abandoned building revitalization credit still available, and where is the guidance on how it works?
South Carolina's abandoned building revitalization credit is still available — its repeal date has been postponed to December 31, 2025. SC Information Letter #21-13 announces that Act No. 21 of 2021 (…
Are "buydown" payments a retailer receives from a manufacturer or wholesaler subject to South Carolina sales tax?
No — effective April 16, 2021, "buydown" payments are excluded from the "gross proceeds of sales" and are not subject to South Carolina sales tax. SC Information Letter #21-12 announces that the Legis…
Are sales of honey bees subject to South Carolina sales and use tax, or are they exempt as 'livestock'?
Exempt. Sales of honey bees are exempt from South Carolina sales and use tax as 'livestock' under Code Section 12-36-2120(4). Because honey bees are livestock and ALL sales of livestock are exempt, an…
What is South Carolina's per capita income figure used for tax incentive qualification, per SC Information Letter #21-11?
$47,502. SC Information Letter #21-11 reports the most recently available per capita personal income figure for the State of South Carolina — $47,502 — which the Department publishes so taxpayers can …
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through March 31, 2021?
Use the citator attached to SC Information Letter #21-9. It lists South Carolina Department of Revenue advisory opinions from 1987 through March 31, 2021 that the Department identifies as modified, mo…
Where is the Department of Revenue's index of South Carolina advisory opinions issued from 1987 through March 31, 2021 (per SC IL #21-10)?
SC Information Letter #21-10 attaches the Department of Revenue's index of every South Carolina advisory opinion issued from 1987 through March 31, 2021. The index catalogs the Department's advisory o…
Did an employee temporarily working remotely in South Carolina because of COVID-19 create nexus or change withholding for the employer, and how long did the relief last?
South Carolina extended its COVID-19 relief so that a business does not establish South Carolina nexus (for income or sales tax) solely because an employee is temporarily working from a different loca…
Did South Carolina extend the 2020 individual income tax filing deadline to May 17, 2021, and what was South Carolina's IRC conformity status for 2020?
South Carolina automatically extended the deadline to file and pay 2020 individual income tax to May 17, 2021, matching the IRS's COVID-19 relief. SC Information Letter #21-7 explains that returns and…
What is South Carolina's tax interest rate for underpayments and overpayments for the period ending June 30, 2021 (per SC IL #21-5)?
3%. SC Information Letter #21-5 sets South Carolina's interest rate on tax underpayments and overpayments at 3% for the period July 1, 2020 through June 30, 2021. Interest is compounded daily, except …
How does South Carolina's housing tax credit for low-income housing projects work — who qualifies, what taxes it offsets, how partnerships allocate it, and can it be sold?
South Carolina's housing tax credit (Code Section 12-6-3795, the 'Workforce and Senior Affordable Housing Act,' enacted May 14, 2020) gives investors in qualified low-income housing a state credit EQU…
For tax year 2020, may South Carolina taxpayers use the higher 2019 earned income amount to compute the South Carolina earned income credit (per SC IL #21-4)?
No. For tax year 2020, the South Carolina earned income credit must be figured using the 2020 earned income amount, even though a federal COVID-19 relief provision let taxpayers elect to use their hig…
If I receive a South Carolina tax credit for donating to a charity, does that reduce the charitable contribution deduction I can claim on my federal and South Carolina income tax returns?
Usually yes. Under a federal Treasury regulation that South Carolina follows (Treas. Reg. 1.170A-1(h)(3), final August 11, 2020), if you donate to a charity and receive a state or local tax CREDIT in …
After Stone v. Thompson abolished common-law marriage in South Carolina, what filing status can a common-law married couple use on their South Carolina income tax return?
It depends on WHEN and WHERE the common-law marriage was formed. In Stone v. Thompson (2019), the South Carolina Supreme Court abolished the ability to enter into a common-law marriage in South Caroli…
Does South Carolina follow the federal IRC Section 163(j) limit on deducting business interest expense, or can taxpayers deduct their full business interest for South Carolina income tax purposes?
South Carolina does NOT follow the federal IRC Section 163(j) limit on business interest expense for tax years beginning after 2017. South Carolina's adoption of the Internal Revenue Code is selective…
Through what date did South Carolina extend the simplified COVID-19 admissions tax refund procedure (per SC IL #21-3)?
Through June 30, 2021. SC Information Letter #21-3 extends the simplified admissions tax refund procedure the Department first announced in SC Information Letter #20-18. Under it, a qualifying busines…
How does South Carolina's housing tax credit for low-income housing projects work — who qualifies, what taxes it offsets, how it passes through partnerships, and can it be sold?
South Carolina's housing tax credit (Code Section 12-6-3795, the 'Workforce and Senior Affordable Housing Act,' enacted May 14, 2020) gives investors in qualified low-income housing a state credit EQU…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through December 31, 2020?
Use the citator attached to SC Information Letter #21-2. It lists South Carolina Department of Revenue advisory opinions from 1987 through December 31, 2020 that the Department identifies as modified,…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through December 31, 2020?
Use the subject index attached to SC Information Letter #21-1. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through December 31, 2020 under administrative, alco…
Are tariff costs and tariff surcharges included in South Carolina's sales or use tax base?
A tariff cost is included in taxable gross proceeds or sales price when the seller or another party is the importer and passes the cost to the purchaser, whether the amount is embedded in the price or…
Were COVID-19 surcharges, handling fees, carryout charges, and delivery fees included in the South Carolina sales-tax base?
Yes, when the charge was part of a retail sale of tangible personal property. A COVID-19 surcharge, handling fee, carryout charge, delivery fee, or similar retailer charge was included in gross procee…
What were the main South Carolina Department of Revenue refund, assessment, property-tax, and Administrative Law Court appeal deadlines in the 2020 guides?
The letter attached four quick-reference guides for nonproperty refund claims, nonproperty assessments and license actions, Department-administered property-tax refund claims, and Department-administe…
How could taxpayers check the status of South Carolina advisory opinions through June 30, 2020?
SC Information Letter #20-21 attaches the Department's citator for advisory opinions issued from 1987 through June 30, 2020. It identifies opinions the Department knew to be modified, modifying anothe…
Where was the Department's index of South Carolina advisory opinions issued through June 30, 2020?
SC Information Letter #20-20 attaches the Department's index of South Carolina advisory opinions issued from 1987 through June 30, 2020 and supersedes SC Information Letter #20-6. The index catalogs R…
What major South Carolina tax changes had been enacted by May 12 during the COVID-disrupted 2020 legislative session?
The July 2020 update summarized four enacted bills and the temporary continuing budget. It extended the $750 energy-efficient manufactured-home credit and the related sales-tax exemption through July …
How did South Carolina sales tax apply to the requesting company's electric-vehicle charging stations?
Electricity sold by utilities to the requesting charging-station operator for resale to drivers was a nontaxable wholesale sale. The operator's sale of electricity to charging customers was a taxable …
How could a South Carolina venue recover admissions tax after refunding tickets for COVID-affected 2020 events?
A registered place of amusement could use the temporary Form L-3060 process no more than once a month to claim admissions tax it had already remitted and then refunded to ticket purchasers. The proced…
When was South Carolina's 2020 sales-tax holiday, and which purchases qualified for the state and local tax exemption?
South Carolina's 2020 sales-tax holiday ran from 12:01 a.m. Friday, August 7 through midnight Sunday, August 9. Eligible purchases were free from the 6% state sales and use tax and Department-collecte…
What South Carolina filing and payment relief applied to people and businesses affected by the April 2020 tornadoes, storms, and flooding?
South Carolina matched the IRS and postponed covered state-equivalent filing and payment deadlines to October 15, 2020 for affected taxpayers in Aiken, Barnwell, Berkeley, Colleton, Hampton, Marlboro,…
Are tobacco-company buydown payments to South Carolina retailers included in taxable gross proceeds?
Yes, when the tobacco-company payment is based on the retailer's actual retail sales. The customer payment and later tobacco-company reimbursement together make up taxable gross proceeds, because both…
Browse South Carolina rulings by topic
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.