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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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…
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 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…
Are a restaurant's monthly charges for table-ordering tablets taxable, and is its separate $1 customer charge for playing offline tablet games taxable?
The vendor's monthly service fee and its share of game revenue were taxable because they paid for the restaurant's rental and use of the tablets. But the restaurant's $1 customer game fee was not taxa…
When does South Carolina use tax apply to purchases from Internet, catalog, auction-site, or out-of-state sellers, and how is it reported?
South Carolina use tax generally applies when taxable property is bought at retail for use, storage, or consumption in the state and South Carolina sales tax was not fully collected. Credit may be ava…
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…
What historical South Carolina use-tax rules did Revenue Ruling 16-6 give individuals, businesses, and nonprofits?
The ruling said South Carolina use tax generally applied when taxable property was bought at retail for use, storage, or consumption in the state and the full South Carolina sales tax was not collecte…
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…
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…
When could property temporarily kept in South Carolina avoid use tax because it was intended for out-of-state use?
The exclusion applied only to a use-tax purchase made for known out-of-state use, with first substantial use outside South Carolina or qualifying in-state processing followed by exclusive out-of-state…
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.…
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%.
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 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.
Under the historical 2008 guidance, when did South Carolina collect casual excise tax or use tax on vehicles, boats, motors, airplanes, and trailers?
Casual excise tax generally applied when South Carolina issued title or ownership proof after a non-retailer sale of a vehicle, motorcycle, boat, motor, or airplane. Use tax generally applied to prope…
Did a federal television-converter-box coupon reduce the South Carolina sales or use tax base under the 2008 ruling?
No. The retailer had to include both the customer's payment and the federal reimbursement in gross proceeds or sales price. The coupon did not make the transaction an exempt sale to the federal govern…
How did RR 06-9 historically tax sales and renewals of warranty, maintenance, and similar service contracts?
For transactions from October 1, 2005 until the rule changed in 2011, retail sales and renewals of contracts covering tangible personal property were generally taxable, whether sold with the property,…
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…
Who owed sales or use tax when a property manager bought operating supplies for a commercial property owner?
For these agreements, the property manager provided a nontaxable management service and did not resell the supplies. The commercial property owner was the purchaser of goods delivered for immediate us…
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…
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…
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…
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…
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 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…
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…
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…
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…
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…
When did South Carolina's historical casual excise tax or use tax apply to vehicles, boats, airplanes, motors, and trailers under RR 95-12?
RR 95-12 imposed casual excise tax at titling after a nonretailer sale of a motor vehicle, motorcycle, boat, motor, or airplane, while use tax applied to covered property bought from an out-of-state r…
Were blood glucose meters exempt from South Carolina sales and use tax under PLR 95-6?
Yes, for the addressed taxpayer when a blood glucose meter was sold to a diabetic under a physician's authorization and direction. The Department treated the meter as a technological development servi…
Which restaurant purchases were taxable or exempt from South Carolina sales and use tax under RR 95-6?
RR 95-6 treated food and beverage ingredients and qualifying containers or packaging used to sell and deliver the meal as nontaxable wholesale or exempt purchases. It treated supplies consumed by the …
Who owed South Carolina sales and use tax under PLR 95-4 when a food-service company managed hospital or private-company cafeterias?
For the addressed contracts, the food-service company made a nontaxable wholesale sale when it supplied food to a hospital and provided a nontaxable service when the hospital bought the food itself; t…
Did RR 94-11 extend South Carolina's school and public-library book exemptions to alternative media?
Yes. Qualifying school and public-library books, periodicals, and newspapers remained exempt when supplied on media such as audio or video tape, CD-ROM, microfilm, or microfiche. The ruling did not ad…
Did PLR 94-11 apply South Carolina's historical $300 maximum tax to a research electron microscope?
Yes. Each item of the electron-microscope system qualified because it was used directly and exclusively to develop or improve membrane-filter applications and was located in a separate facility devote…
How did PLR 94-10 tax an out-of-state fabricated ornamental railing installed at a South Carolina dealership?
The ruling classified the railing as a unique product. Materials used to fabricate it out of state were not taxed because they were not sold and delivered to the contractor in South Carolina, but inst…
Did PLR 94-7 exempt grease and oil used to lubricate tax-exempt manufacturing machinery?
No. The ruling treated the lubricants as taxable purchases for ABC's own use, not exempt machine parts or purchases for resale. Later burning the used oil as boiler fuel, recycling it, selling it, or …
How did PLR 94-4 tax a food-service company selling university meal plans as the school's agent?
The ruling treated unprepared food bought for board-plan meals as taxable retail purchases and treated separate meal or food sales as taxable retail sales. For shared inventory, the agent bought whole…
How did RR 94-2 tax standard and custom-fabricated building products used by their maker in construction contracts?
A true manufacturer regularly selling standard finished products owed tax on fair market value when it used those products at a South Carolina job site. A contractor fabricating unique, job-specific p…
When did PLR 94-2 treat a federal security contractor's purchases as exempt federal-government purchases?
The purchases were exempt when ABC bought on the federal government's behalf, did not risk its own credit, disclosed the government agency on purchase orders, vested title in the government, and paid …
Did PLR 94-1 impose South Carolina sales, use, or property tax on equipment sold for foreign resale and temporarily stored in-state?
No, on the stated facts. The sale to the foreign company was a wholesale sale for resale, and the equipment remained exempt inventory while temporarily stored in South Carolina before export.
Did South Carolina PLR 93-6 apply the historical $300 maximum tax to each item in a university supercomputer system used for research and development?
Yes. Each item qualified because the system was used exclusively to develop software and other R&D products and was housed in a restricted, separately staffed facility devoted exclusively to research …
How did South Carolina Revenue Ruling 93-9 apply sales and use tax to meals furnished or sold by colleges, hospitals, and their food-service companies?
Institutional meals were taxable at different transaction points: food inputs used for board-plan or patient meals were retail purchases, while separate cash food sales were taxable retail sales by th…
Under South Carolina PLR 93-5, were sales of Lupron exempt when dispensed by a pharmacist or sold by the manufacturer to a physician for administration?
A licensed pharmacist's sale of Lupron under a medical professional's prescription was exempt. LOP's sale to a physician who would administer the drug was taxable because the doctor was the consumer a…
How did South Carolina Revenue Ruling 93-8 tax basic horse and stock trailers compared with trailers containing a camper package?
Basic trailers, tack- or dressing-room trailers, and goosenecks without camper packages were taxed at the full 5% historical rate. A trailer with a camper package paid the lesser of 5% or $300.
Under South Carolina Revenue Ruling 93-6, when were charges for extended warranties subject to sales or use tax?
A warranty sold with tangible personal property was taxable in full, even if optional and separately stated. A separate warranty bought after the property sale was not subject to sales or use tax.
When did South Carolina Revenue Ruling 93-4 treat computer-software maintenance and support contracts as taxable?
A maintenance contract sold with software was fully taxable, whether optional or mandatory. A separately sold or later contract was taxable when its true object was software or updates, but not when i…
Did SC PLR 92-10 impose sales or use tax when exempt manufacturing machines were sold to a lessor and leased back to the manufacturer?
No. The sale to the lessor, the lease back to ABC, and ABC's continued use of the machines were exempt because the equipment was used to manufacture tangible personal property for sale. The ruling sai…
How did South Carolina Revenue Ruling 92-5 apply sales and use tax to vending-only businesses and businesses also making counter sales?
A vending-only operator generally paid tax when buying inventory. A business also making counter sales could buy common inventory for resale, then report vending withdrawals and counter sales separate…
Which restaurant purchases did South Carolina Revenue Ruling 92-3 treat as tax-free resale or packaging items, and which as taxable supplies?
Food, beverage ingredients, and containers or wrapping used to sell and deliver them were generally tax-free. Napkins, straws, utensils, cleaning items, furniture, office supplies, and other operating…
When did SC Revenue Ruling 91-9 tax lease payments for tangible personal property delivered in or later brought into South Carolina?
In-state delivery from a South Carolina lessor made every lease payment taxable even if the lessee immediately moved the property out of state. Lessor-required out-of-state delivery made the payments …
Which components of a municipal water-treatment-plant expansion qualified for the manufacturing-machine sales-tax exemption under SC RR 91-8?
Equipment within the processing window—from the rapid-mix tank through final filtration—generally qualified, including mixers, flocculators, sludge machinery, processing piping, filter tanks, media fi…
Were time-based charges for accessing an out-of-state computer research database over telephone lines subject to South Carolina sales and use tax?
Yes. Charges for computer database access time were taxable as charges for transmitting messages through a modem and telephone lines. XYZ became liable for sales and use tax on those charges effective…
How did South Carolina sales and use tax apply when a flight school leased aircraft from owners, used them for instruction, rented them to customers, and bought aviation fuel and repair parts?
Lease payments to aircraft owners were not taxed when XYZ acquired the aircraft for rental and also used them for instruction, but the first instructional use triggered tax on fair market value. Quali…
Who was liable for South Carolina use tax when an in-state contractor bought building materials from an out-of-state retailer?
The contractor was liable for the use tax. If the out-of-state retailer was required or authorized to collect South Carolina tax, either party could be assessed. A receipt from such a retailer showing…
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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.