Is South Carolina's Energy Star sales tax holiday still in effect (per SC IL #09-10)?

Plain-English summary

South Carolina's Energy Star sales tax holiday has been eliminated — it will not take place. During the 2008 legislative session, the General Assembly established a month-long Energy Star Sales Tax Holiday that would have applied to purchases of certain energy-efficient products (for example, dishwashers, clothes washers, air conditioners, ceiling fans, and fluorescent light bulbs). It was to occur every October beginning in 2009, provided state revenue-growth forecasts met or exceeded certain levels.

On May 4, 2009, the South Carolina Supreme Court ruled the act authorizing the Energy Star holiday unconstitutional (American Petroleum Institute and BP Products North America Inc. v. South Carolina Department of Revenue, Opinion No. 26645). As a result, the Energy Star Sales Tax Holiday is eliminated.

The same court decision also eliminated the Second Amendment Sales Tax Holiday — but the General Assembly then re-enacted a Second Amendment Sales Tax Holiday in the 2009-2010 State Appropriations Act (House Bill 3560, Part 1B, Section 89, Proviso 89.135). That two-day holiday applies to purchases of handguns (as defined in § 16-23-10(1)), rifles, and shotguns, and took place on the Friday and Saturday after Thanksgiving — November 27 and 28, 2009. Because it was enacted as a temporary proviso, it will not recur in later years unless the General Assembly re-enacts the proviso or codifies a new exemption.

What this means for you

If you are a shopper or appliance/electronics retailer

Do not plan for an Energy Star sales tax holiday — it no longer exists after the Supreme Court struck down the authorizing act.

If you sell firearms

A two-day Second Amendment Sales Tax Holiday applied to handguns, rifles, and shotguns on November 27-28, 2009, but it was a temporary proviso, so whether it recurs in any later year depends on the General Assembly re-enacting or codifying it.

Common questions

Q: Is the Energy Star sales tax holiday still happening?
A: No. The South Carolina Supreme Court ruled the authorizing act unconstitutional on May 4, 2009, and the holiday has been eliminated.

Q: What about the Second Amendment Sales Tax Holiday?
A: It was also eliminated by the same decision, but the General Assembly re-enacted a two-day version (handguns, rifles, shotguns) for November 27-28, 2009 as a temporary proviso.

Q: Which court case eliminated these holidays?
A: American Petroleum Institute and BP Products North America Inc. v. South Carolina Department of Revenue, Opinion No. 26645 (May 4, 2009).

Subject

Energy Star Sales Tax Holiday Eliminated

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL09-10.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC INFORMATION LETTER #09-10

SUBJECT:

Energy Star Sales Tax Holiday Eliminated

DATE:

June 5, 2009

SUPERSEDES:

All previous advisory opinions and any oral directives in
conflict herewith.

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000; Supp. 2008)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public
to announce general information useful in complying with the
laws administered by the Department. An Information Letter
has no precedential value.

During the 2008 legislative session, the General Assembly established an Energy Star
Sales Tax Holiday.
This month-long sales tax holiday would have applied to purchases of certain specific
energy efficient products (e.g., dishwashers, clothes washers, air conditioners, ceiling
fans, fluorescent light bulbs, etc.) and would have taken place every October beginning in
2009, provided revenue growth forecasts for state government met or exceeded certain
levels.
However, on May 4, 2009, the South Carolina Supreme Court ruled that the act
authorizing the Energy Star Sales Tax Holiday was unconstitutional.1 As such, the
Energy Star Sales Tax Holiday has been eliminated.

1

The American Petroleum Institute and BP Products North America Inc v. South Carolina Department of
Revenue, et al. (Opinion No. 26645, May 4, 2009). As a result of the decision in this case, the Second
Amendment Sales Tax Holiday was also eliminated. However, the General Assembly subsequently
included a Second Amendment Sales Tax Holiday in the 2009 – 2010 State Appropriations Act (House Bill
3560 of 2009, Part 1B, Section 89, Proviso 89.135). This two-day Second Amendment Sales Tax Holiday
applies to purchases of handguns (as defined in Code Section 16-23-10(1)), rifles and shotguns and will
take place on the Friday and Saturday after Thanksgiving - November 27th and 28th of 2009.
This “new” Second Amendment Sales Tax Holiday was enacted as a temporary proviso; therefore, it will
not take place in subsequent years unless the General Assembly re-enacts the temporary proviso or codifies
a new Second Amendment Sales Tax Holiday exemption.

1