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 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 …
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…
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…
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 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 …
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…
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…
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…
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 …
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…
Who owed South Carolina sales tax on the requesting company's peer-to-peer vehicle rentals?
The requesting platform was the retailer responsible for remitting South Carolina sales tax on all of its peer-to-peer motor vehicle rentals of 30 days or less in the state. It qualified as a marketpl…
How were micro-distillery tours and liquor tastings taxed before the May 17, 2021 law change?
Under RR 19-3's pre-May 17, 2021 rules, a paid tour that included liquor was treated as a liquor sale: sales tax and the 5% liquor-by-the-drink excise tax applied to gross proceeds, while admissions t…
How do South Carolina sales and admissions taxes apply to brewery tours and beer samples?
When a brewery provides beer as part of a paid tour, the true object is the beer sale: sales tax applies to the full charge and admissions tax does not. The same sales-tax result applies when the tour…
When can a South Carolina purchaser age 85 or older receive the one-percentage-point reduction in the state sales, use, or casual excise tax rate?
A purchaser age 85 or older receives the one-percentage-point state tax reduction only when the individual personally buys an item for personal use, requests the reduction at the time of sale, and pro…
How much South Carolina sales tax is due when a dealer sells a motor vehicle or trailer to an out-of-state resident (per SC IL #14-2)?
When a South Carolina dealer sells a motor vehicle, trailer, semitrailer, or pole trailer to a nonresident who will register and license it in their home state, S.C. Code § 12-36-930 limits the South …
How did South Carolina apply sales tax, admissions tax, and alcohol licensing to nonprofit fundraising events?
Tax treatment depended on what attendees paid for and whether the nonprofit qualified for a statutory exemption. A true charitable donation could be nontaxable even with an incidental meal, while a me…
How do loyalty points and paperless autopay discounts affect South Carolina sales tax on wireless service, phones, and accessories?
Loyalty points do not change the taxable monthly wireless fee when issued, and redeemed discounts generally reduce the taxable price. But phones transferred for one cent or far below cost may be taxab…
When is South Carolina sales tax due on layaway and partial-payment sales, and is a layaway fee taxable?
Tax is due when title or possession of the merchandise transfers, not when advance payments are received. A layaway fee becomes taxable as part of the sale if the transfer occurs, but is not taxable i…
Is customer-owned excess renewable electricity taxable when it is banked under a net-metering plan and later offsets the customer's utility usage?
No. When the customer retained ownership of excess renewable electricity and banked it with the utility, later use of that electricity was not a utility sale or customer consideration, so its value wa…
Are hosted business-collaboration and electronic-messaging subscription services subject to South Carolina sales and use tax?
Yes. The Department treated the described hosted collaboration and messaging subscriptions as taxable communications services, taxed all associated fees, and sourced them to each end user's primary bu…
Did qualifying low-speed vehicles receive South Carolina's former $300 maximum sales tax as motor vehicles?
Yes, under the former law. A low-speed vehicle meeting South Carolina's highway, title, registration, licensing, insurance, and safety requirements qualified for 5% tax capped at $300 with no local ta…
Did a rebate paid under South Carolina's 2010 Energy Star appliance program reduce the amount subject to sales tax?
No. The 2010 rebate did not reduce taxable gross proceeds because the retailer received the discounted customer payment plus reimbursement from the State Energy Office program. A separately stated tra…
Which medicines, prosthetic devices, diabetic supplies, and other medical products did South Carolina treat as sales-tax exempt in 2010?
Exemption depended on the product, purchaser, prescription, and use. Prescription-required medicine sold by prescription to an individual was exempt, while many supplies sold to doctors or hospitals w…
How did South Carolina apply sales tax, admissions tax, alcohol permits, and liquor-by-the-drink tax to nonprofit fundraising events?
Tax treatment depends on what guests are really buying and whether an exemption applies. True donations are not sales or admissions, but meals, entertainment, drinks, and auctioned goods can be taxabl…
Are mandatory housekeeping charges billed to fractional owners during their assigned resort-villa weeks taxable as additional guest charges?
No. During their assigned ownership weeks, the co-owners were not transients paying room rent, so housekeeping was not an additional guest charge. The result changed when the villa was rented to a tra…
Did a federal Cash for Clunkers voucher reduce the South Carolina sales-tax base for a new vehicle?
No. The dealer's federal voucher payment and the buyer's payment both entered taxable proceeds. The separate salvage value allowed for the trade-in was excluded.
How did South Carolina's 2009 guidance source and administer local sales and use taxes and Catawba Tribal tax?
Under this superseded guide, qualifying retailers collected Department-administered local tax for the delivery jurisdiction, while purchasers handled uncollected use tax where property was first used.…
When did paying an individual from nonprofit sales proceeds cause a South Carolina nonprofit to lose its sales-tax exemption?
The exemption was lost for sales tied to percentage-of-proceeds payments to an artist, shop manager, or event promoter. Donated or purchased goods, volunteers, and reasonable fixed wages could qualify…
Are guest units rented by a South Carolina retirement community to residents' family and friends subject to accommodations tax?
Yes. Nightly, weekly, and monthly guest-unit rentals were taxable accommodations unless the same unit was supplied to the same person for at least 90 continuous days or another exemption applied.
Are late-payment fees charged by South Carolina utilities included in taxable gross proceeds?
Usually yes for taxable cable and telephone service because a default charge was not a finance charge. But late fees on electricity or natural-gas bills were expressly excluded from tax.
Are portable-toilet rental and servicing charges subject to South Carolina sales and use tax?
Yes, but only 30% of the total was taxable under the ruling. The toilet was rented tangible property, servicing fees were part of the rental, and a statute exempted the other 70%.
What South Carolina tax consequences followed a federal Internal Revenue Code § 338(h)(10) election under the 2009 guidance?
The federal election automatically applied for South Carolina income tax, but the deemed asset sale created no sales tax or deed recording fee. Income allocation, credits, and personal-property basis …
Were monthly charges for a repair plan covering an existing connected residential water heater subject to South Carolina sales tax?
No. The connected water heater was treated as real property, while South Carolina taxed the described warranty and maintenance contracts only when they covered tangible personal property.
When are South Carolina hotel stays for government, diplomatic, nonprofit, or Red Cross travelers exempt from sales tax?
Exemption depended on the purchaser and payment method. Direct federal, qualifying diplomat, federal-credit-union, Red Cross, and one narrow hospital category could qualify; most employee-paid and sta…
When is a purchase made with a federal government credit card exempt from South Carolina sales and use tax?
A purchase was exempt when the U.S. government was billed and paid directly. It was taxable when the federal employee was personally billed and later reimbursed.
Were a taxpayer's DVD rentals and sales made exclusively through automated vending machines subject to South Carolina sales tax?
No, on the taxpayer's specific facts. Customer rentals or sales made exclusively through automated DVD vending machines were not retail sales subject to sales tax. Instead, the vending-machine operato…
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…
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…
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…
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…
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…
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…
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 …
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…
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 …
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 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…
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…
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…
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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.