What local sales and use taxes and Catawba tribal tax rates does South Carolina collect effective March 1, 2015 (per SC IL #14-17)?

Plain-English summary

This Information Letter is a set of three reference charts, effective March 1, 2015, showing the local sales and use taxes the South Carolina Department of Revenue collects and which exemptions apply to each. The charts cover general local taxes collected on behalf of counties, municipalities, and school districts (Chart 1), the Catawba Indian tribal tax (Chart 2), and the municipal local tourism-development sales tax/fee (Chart 3). They do not cover local accommodations taxes or prepared-meals (hospitality) taxes, which counties and municipalities collect directly. This letter supersedes SC Information Letter #14-5.

The March 1, 2015 edition reflects that Aiken and Anderson Counties will begin collecting a 1% Education Capital Improvement Tax, and that the School District Tax in Cherokee County ends February 28, 2015 while a new Education Capital Improvement Tax begins in Cherokee County the next day, March 1, 2015.

For the Catawba Indian Reservation, which spans Lancaster and York Counties, the tribal sales and use tax rates are:

• Lancaster County portion: 8% general tangible personal property, 9% accommodations, 2% unprepared food.
• York County portion: 7% general tangible personal property, 8% accommodations, 0% unprepared food.

For maximum-tax items (such as vehicles), the tribal rate is 5% in each county, capped at the § 12-36-2110 maximum tax. The tribal sales tax is collected by the Department; the tribal use tax is collected by the Catawba Indian Tribe.

What this means for you

If you are a retailer collecting local tax

Use the chart for the specific county to confirm which local taxes apply and which exemptions (state exemptions, maximum-tax items, casual excise items, food stamp purchases, unprepared food) apply to each.

If you sell on or deliver to the Catawba Indian Reservation

Apply the tribal rates above rather than the ordinary county local taxes; the specific rate depends on whether the delivery is in the Lancaster or York County portion and on the type of item sold.

Common questions

Q: What changed effective March 1, 2015?
A: Aiken and Anderson Counties begin a 1% Education Capital Improvement Tax; Cherokee County's School District Tax ends February 28, 2015 and is replaced by an Education Capital Improvement Tax on March 1, 2015.

Q: What are the Catawba tribal tax rates?
A: In the Lancaster County portion, 8% general TPP / 9% accommodations / 2% unprepared food; in the York County portion, 7% / 8% / 0%. Maximum-tax items are taxed at 5% in each county, capped at the state maximum tax.

Q: Do these charts cover accommodations and prepared-meals taxes?
A: No. Those local taxes are collected directly by the counties or municipalities, not by the Department, and are outside these charts.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL14-17.pdf

Original ruling text

State of South Carolina

Department of Revenue
P.O. Box 12265, Columbia, South Carolina 29211
Website Address: http://www.dor.sc.gov

SC INFORMATION LETTER #14-17 (Revised)
SUBJECT:

Local Sales and Use Tax Charts, Catawba Tribal Sales and Use Tax Chart and
Exemption Information
(Sales and Use Tax)

EFFECTIVE

DATE: March 1, 2015

SUPERSEDES:

SC Information Letter #14-5

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2014)
S. C. Code Ann. Section 1-23-10(4) (2005)
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.

The South Carolina Code of Laws allows the imposition of various types of local sales and use
taxes. Citizens of a county, depending upon the needs within the county, may impose one or
several local sales and use taxes. Municipal councils, or the citizens of a municipality, may
impose a sales and use tax 1 for tourism development if the municipality is located in a county
where revenue from state accommodations tax is at least $14 million in a fiscal year. 2
While most of these local sales and use taxes provide the same exemptions for certain sales and
purchases, there are some differences. Attached are three charts that should provide guidance
concerning the various types of local sales and use taxes collected by the Department of Revenue
and the types of exemptions allowed under each tax.
Please note that these charts only address the general local sales and use taxes collected by the
Department of Revenue on behalf of the counties, municipalities, school districts, and the
Catawba Indian tribal government. They do not address the local taxes on sales of
accommodations or on sales of prepared meals that are collected directly by the counties or
municipalities.

1

This municipal sales and use tax is actually a fee (Local Option Tourism Development Fee) imposed under
Article 9 of Chapter 10, Title 4. For purposes of simplicity, this fee will be referred to as a sales and use tax in this
information letter.
2
As of the date of this information letter, only Horry County meets this criterion.

1

Note: This information letter is effective March 1, 2015. It is being issued to reflect that
effective March 1, 2015, Aiken and Anderson Counties will begin collecting a 1%
Education Capital Improvement Tax. In addition, the School District Tax in Cherokee
County will end on February 28, 2015; however, an Education Capital Improvement Tax
will begin in Cherokee County the next day on March 1, 2015. 3
CHART 1: COUNTY SALES AND USE TAXES 4
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
1/1/13

Yes

Yes

No

Yes

Yes

Yes

1 & 26

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

1 & 26

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

5

Capital Projects
5/1/09

Yes

Yes

No

Yes

No

Yes

1&5

Anderson

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

1 & 32

Bamberg

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

29

Capital Project
5/1/13

Yes

Yes

No

Yes

Yes

Yes

1 & 29

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Abbeville
Aiken

Allendale

Barnwell

No Local Sales and Use Tax is Imposed in this County

Beaufort
Berkeley

NOTE

6

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

17

Transportation
5/1/09

Yes

Yes

No

Yes

No

Yes

1 & 17

3

The following counties will begin imposing a local sales and use tax effective May 1, 2015: Colleton (Capital
Projects) and Georgetown (Capital Projects). Another information letter will be issued at a later date to reflect the
imposition of these local sales and use taxes effective May 1, 2015.
4
“County Sales and Use Taxes” listed in this chart (Chart 1) are imposed county-wide, whether imposed by the
county or one or more school districts.

2

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Calhoun

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Charleston

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

8

Transportation
5/1/05

Yes

Yes

No

Yes

No

Yes

1&8

Ed. Capital Imp.
3/1/11

Yes

Yes

No

Yes

Yes

Yes

1&8

Local Option
5/1/09

Yes

Yes

Yes

Yes

No

Yes

1 & 18

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

18

Local Option
5/1/94

Yes

Yes

Yes

Yes

No

Yes

3

Capital Projects
5/1/09

Yes

Yes

No

Yes

No

Yes

1&3

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

4

Chesterfield
Schools
9/1/00

Yes

Yes

No

Yes

Yes

Yes

1&4

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

11

Clarendon
Schools
6/1/04

Yes

Yes

No

Yes

Yes - until
6/30/05
No - effective
7/1/05

Yes

1 & 11

Colleton

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Darlington

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

10

Darlington
Schools
2/1/04

Yes

Yes

No

Yes

Yes

Yes

1 & 10

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

7

Dillon Schools
10/1/08

Yes

Yes

No

Yes

Yes

Yes

1&7

Cherokee

Chester

Chesterfield

Clarendon

Dillon

3

NOTE

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

1

Dorchester

Transportation
5/1/05

Yes

Yes

No

Yes

No

Yes

Edgefield

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Fairfield

Local Option
5/1/06

Yes

Yes

Yes

Yes

No

Yes

Florence

Local Option
5/1/94

Yes

Yes

Yes

Yes

No

Yes

15

Capital Projects
5/1/14

Yes

Yes

No

Yes

Yes

Yes

1 & 15

Georgetown

No Local Sales and Use Tax is Imposed in this County

25

Greenville

No Local Sales and Use Tax is Imposed in this County

25

Greenwood

No Local Sales and Use Tax is Imposed in this County

23

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

9

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

1&9

Horry

Ed. Capital Imp.
3/1/09

Yes

Yes

No

Yes

Yes

Yes

1 & 16

Jasper

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

2

Jasper Schools
12/1/02

Yes

Yes

No

Yes

Yes

Yes

1&2

Kershaw

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Lancaster

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

19

Capital Projects
5/1/09

Yes

Yes

No

Yes

No

Yes

1 & 19

Laurens

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Lee

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

14

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

1 & 14

Hampton

4

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

Yes

Yes

No

Yes

Yes

Yes

1 & 24

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

28

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

1 & 28

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

27

Marlboro
Schools
2/1/13

Yes

Yes

No

Yes

Yes

Yes

1 & 27

McCormick

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Newberry

Capital Projects
4/1/12

Yes

Yes

No

Yes

Yes

Yes

Lexington

Marion

Marlboro

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE
Lexington
Schools
3/1/12

Oconee
Orangeburg

No Local Sales and Use Tax is Imposed in this County

1 & 22

25

Capital Projects
4/1/13

Yes

Yes

No

Yes

Yes

Yes

Pickens

Local Option
5/1/95

Yes

Yes

Yes

Yes

No

Yes

Richland

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

30

Transportation
5/1/13

Yes

Yes

No

Yes

No

Yes

1 & 30

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Saluda

Spartanburg
Sumter

No Local Sales and Use Tax is Imposed in this County

1 & 31

25

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

20

Capital Projects
5/1/09

Yes

Yes

No

Yes

No

Yes

1 & 20

Union

No Local Sales and Use Tax is Imposed in this County

25

Williamsburg

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

York

Capital Projects
1/1/12

Yes

Yes

No

Yes

Yes

Yes

5

1 & 21

CHART 2: CATAWBA INDIAN RESERVATION TRIBAL TAX 5
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
RESERVATION
LOCATED IN
YORK AND
LANCASTER
COUNTIES

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

Catawba Indian
Reservation

Tribal Tax (See
Notes #12 and

13)

Yes

See Note #13

See Note #13

Yes

See Note #12

See Note #13

12 &13

CHART 3: MUNICIPAL SALES AND USE TAXES 6
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
Municipality

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

Myrtle Beach

Tourism
Development
8/1/09

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

Yes

Yes

No

Yes

Yes

Yes

1

LOCAL TAX RATES:
Each local tax listed in the above charts is imposed at a rate of 1%, except for the Charleston
County Transportation Tax which is imposed at a rate of 1/2 of 1% (Chart #1) and the Catawba
Tribal Sales and Use Tax (Chart #2). See Notes #12 and #13 for information on the tax rates and
the application of either the State sales and use tax or the Catawba Tribal Sales and Use Tax for
sales (deliveries) made on the Catawba Indian Reservation.

5

Chart 2 concerns the Catawba Tribal Sales and Use Tax; however, see Notes #12 and #13 for information on the
tax rates and the application of either the State sales and use tax or the Catawba Tribal Sales and Use Tax for sales
(deliveries) made on the Catawba Indian Reservation.
6
Chart 3 concerns the Local Tourism Development Sales and Use Tax that may only be imposed by municipalities
located in a county where revenue from state accommodations tax is at least $14 million in a fiscal year.
As of the date of this information letter, only Horry County meets this criterion; therefore, only municipalities in
Horry County may impose the Local Tourism Development Sales and Use Tax at this time.

6

TYPES OF LOCAL SALES AND USE TAXES:
Local Option: The local option sales and use tax is authorized under Code Section 4-10-10 et
seq. This tax is a general sales and use tax on all sales at retail (with a few exceptions) taxable
under the state sales and use tax. This tax is imposed to reduce the property tax burden on
persons in the counties that impose this type of local tax and is collected by the Department of
Revenue on behalf of these counties.
Capital Projects: The local capital projects sales and use tax is authorized under Code Section
4-10-300 et seq. This tax is a general sales and use tax on all sales at retail (with a few
exceptions) taxable under the state sales and use tax. This tax is imposed specifically to defray
the debt service on bonds issued for various capital projects in the counties that impose this type
of local tax and is collected by the Department of Revenue on behalf of these counties.
Transportation: The local transportation projects sales and use tax is authorized under Code
Section 4-37-30 et seq. This tax is a general sales and use tax on all sales at retail (with a few
exceptions) taxable under the state sales and use tax. This tax is imposed specifically to defray
the debt service on bonds issued for various transportation projects in the counties that impose
this type of local tax and are collected by the Department of Revenue on behalf of these counties.
Personal Property Tax Relief: The personal property tax relief sales and use tax is authorized
under Code Section 4-10-540 et seq. This tax is a general sales and use tax on all sales at retail
(with a few exceptions) taxable under the state sales and use tax. This tax is imposed in lieu of
the personal property tax imposed on private passenger motor vehicles, motorcycles, general
aviation aircraft, boats, and boat motors. The tax may not exceed the lesser of 2% or the amount
necessary to replace the property tax on vehicles, motorcycles, general aviation aircraft, boats,
and boat motors in the most recently completed fiscal year. As of the date of this information
letter, this tax is not being imposed.
Local Property Tax Credits: The local option sales and use tax for local property tax credits is
authorized under Code Section 4-10-720 et seq. This tax is a general sales and use tax on all sales
at retail (with a few exceptions) taxable under the state sales and use tax. This tax is imposed to
provide a credit against property tax imposed by a political subdivision for all classes of property
subject to the property tax and is collected by the Department of Revenue on behalf of these
counties. As of the date of this information letter, this tax is not being imposed.
Education Capital Improvement Sales and Use Tax. The school district or school districts
within a county may impose a 1% sales and use tax within the county for specific education
capital improvements for the school district for not more than 15 years. 7 The tax is authorized
under Code Section 4-10-410 et seq. and must be approved by a referendum open to all qualified
electors residing in the county. Pursuant to a memorandum of agreement, a portion of the
revenue may be shared with the area commission (governing body of a technical college) or
higher education board of trustees (governing body of a public institution of higher learning) or
both, for specific education capital improvements on the campus of the recipient located in the
county listed in the referendum.
7

Under one of the criteria for imposing this tax, the tax may not be imposed for more than 10 years.

7

The General Assembly has established several criteria that make a county or school district
eligible to impose this tax. The county or school district must meet only one of these criteria,
established in Code Section 4-10-470, in order for the tax to be imposed within the county.
School District Taxes. The General Assembly has authorized certain school districts to impose a
sales and use tax within the county. These taxes are generally imposed to pay debt service on
general obligation bonds and/or the cost of capital improvements.
As of the date of this information letter, these school district taxes are being imposed at a rate of
1% 8:
County

Act Authorizing Tax

Chesterfield
Clarendon
Darlington
Dillon
Jasper
Lexington
Marlboro

Act No. 441 of 2000
Act No. 355 of 2004 and Act No. 195 of 2005
Act No. 132 of 2003
Act No. 137 of 2007
Act No, 146 of 2001
Act No. 378 of 2004 and Act No. 88 of 2011
Act No. 204 of 2005

Catawba Indian Tribal Tax: The Catawba Indian Reservation is located in Lancaster and York
Counties where the combined sales and use tax rate in each county was 7% through April 30,
2009. Effective May 1, 2009, the combined sales and use tax rate for Lancaster County is 8% and
York County remains 7%. Code Section 27-16-130(H) contains the specific sales and use tax
provisions. The sales tax is administered and collected by the Department. See SC Revenue
Ruling #98-18 and Notes #13 and #14 of this information letter.
Tourism Development Tax: The local tourism development sales and use tax is authorized
under Code Section 4-10-910 et seq. This tax is a general sales and use tax on all sales at retail
(with a few exceptions) taxable under the state sales and use tax and may only be imposed by a
municipality located in a county where revenue from the state accommodations tax is at least $14
million in a fiscal year. As of this date, only Horry County meets this criterion; therefore, only
municipalities in Horry County may impose this tax. This tax may be imposed by an ordinance
adopted by a two-thirds majority of the municipal council or by approval by a majority of
qualified electors voting in a referendum authorized by a majority of the municipal council. The
tax is imposed specifically for tourism advertisement and promotion directed at nonresidents of
South Carolina; however, in the third and subsequent years of this tax, a portion of the tax may
be used for certain property tax rollbacks. The tax is collected by the Department of Revenue on
behalf of these municipalities.

8

See Chart 1 for the date each school district tax was first imposed.

8

REMITTANCE OF LOCAL SALES AND USE TAXES BY RETAILERS:
For information on when a retailer is required to remit a local sales and use tax when delivering
product to a purchaser in another county, see SC Revenue Ruling #09-9. 9
TYPES OF EXEMPTIONS:
State Exemptions - 12-36-2120: Except for sales of unprepared food exempt from the 6% state
sales and use tax under Code Section 12-36-2120(75), sales of tangible personal property exempt
from the State sales and use tax are exempt from the local sales and use tax if marked “Yes”
under this column.
Note: Sales of unprepared food are only exempt from a local sales and use tax if the local sales
and use tax law specifically exempts such sales. For information on the exemption for sales of
unprepared food from local sales and use taxes, see the discussion below entitled “Exemption for
Certain Food Sales.”
Exemption for Maximum Tax Items - Code Section 12-36-2110: Sales of items subject to a
maximum tax under the State sales and use tax law [i.e. aircraft, motor vehicles, motorcycles,
boats, trailers and semitrailers pulled by truck tractors, horse trailers, recreational vehicles
(including tent campers, travel trailers, park models, park trailers, motor homes, and fifth
wheels), self-propelled light construction equipment, unassembled aircraft, manufactured homes,
musical instruments and office equipment purchased by certain religious organizations and fire
safety education trailers] are exempt from the local sales and use tax if marked “Yes” under this
column.
Exemption for Casual Excise Tax Items - Code Section 12-36-1710: Sales of items subject to
the casual excise tax under Code Section 12-36-1710 through Code Section 12-36-1740 (i.e.
motor vehicles, motorcycles, boats, motors, and airplanes required to be registered, titled, or
licensed) are exempt from the local sales and use tax if marked “Yes” under this column.
Exemption for Food Stamp Purchases: Sales of food purchased with foods stamps are exempt
from the State sales and use tax; therefore, such sales are exempt from the local sales and use tax
if marked “Yes” under this column.
Exemption for Certain Food Sales: Sales of certain foods are exempt from the local sales and
use tax if marked “Yes” under this column. Sales of food which are eligible to be purchased with
United States Department of Agriculture food stamps come under this exemption. This
exemption applies to everyone, not just persons using food stamps.

9

For a detailed discussion of this matter, see also SC Revenue Ruling #05-16. However, please note that SC
Revenue Ruling #09-9 modifies SC Revenue Ruling #05-16 since, at the time it was issued, all local sales and use
taxes were administered and collected on a county-wide basis. With the enactment of the Tourism Development Tax,
the principles of SC Revenue Ruling #05-16 also apply to any local sales and use tax imposed on a municipal-wide
or other basis.

9

Foods which may be purchased with food stamps and are exempt from these local sales
and use taxes include:
*

Any food intended to be eaten at home by people, including snacks, beverages and
seasonings

• Seeds and plants intended to grow food (not birdseed or seeds to grow flowers)
• Cold items, which may include salads or sandwiches, intended to be eaten at home
  by people

Items which cannot be purchased with food stamps and are, therefore, subject to these
local sales and use taxes are:
*
*
*
*
*
*

Alcoholic beverages, such as beer, wine, or liquor
Hot beverages ready to drink, such as coffee
Tobacco
Hot foods ready to eat
Foods designed to be heated in the store
Hot and cold food to be eaten at a lunch counter, in a dining area or anywhere else
in the store or in a nearby area such as a mall food court

• Vitamins and medicines (Note: Sales of certain medicines are exempt from the State
  sales and use tax, and therefore, are also exempt from all local sales and use taxes.)
• Pet food
• Any non-food items such as tissue, soap or other household goods

For more detailed information on this food exemption, see SC Regulation 117-337.
“Grandfather Clause” Exemption for Certain Purchases By Construction Contractors: All
the local sales and use taxes discussed in this information letter exempt purchases of building
materials for use under a construction contract if both of the following conditions are met:
A. 1. the construction contract is executed before the imposition date; or

2. a written bid is submitted before the imposition date culminating in a construction
   contract entered into before or after the imposition date; and
   B. a verified copy of the contract is mailed within 6 months of the imposition date to:
   SC Department of Revenue
   ATTN: Registration
   P.O. Box 125
   Columbia, SC 29214-0140
   A "verified copy" is a copy accompanied by a statement, signed under penalties of perjury, that it
   is true and correct. If the contractor is a corporation, the statement is to be signed by an officer of
   the corporation or an employee authorized to sign. If the contractor is a partnership, the statement
   is to be signed by a general partner. If the contractor is a sole proprietorship, the owner is to sign.

10

Special Exemption Certificate. In order for a contractor to purchase building materials for a
particular contract free of the local tax, the contractor must complete Form ST-10-C
("Application for Exemption from Local Option Tax") and submit it to the Department of
Revenue. If the Department determines the contract in question meets the above requirements,
the contractor will be issued a special exemption certificate (Form ST-35). The certificate may
only be used to purchase building materials for the contract for which it is issued and may not be
used to purchase anything other than building material. If the contractor uses this certificate to
make purchases free of the local tax, upon which the tax should have been paid, then the
contractor will be held liable for the tax. Also, the certificate does not allow the contractor to
make purchases of building materials free of the State tax.
An exemption certificate (Form ST-35) issued by the Department of Revenue to a prime
contractor under this exemption may not be used by a subcontractor nor may a prime contractor
use a subcontractor's exemption certificate. Each contractor must obtain his own certificate for
each construction contract.
Note #1: Only “Local Option” taxes automatically exempt casual excise tax items. By not
exempting items subject to the casual excise tax (“No” in the “Casual Excise Items” column),
counties imposing this local sales and use tax will impose the local tax on sales and purchases of
trailers that can be pulled by vehicles other than truck tractors, sales of pole trailers and sales of
boat motors not attached to a boat at the time of sale, but will not impose the local sales and use
tax on items subject to a maximum tax under the State sales and use tax law.
Note #2: Since December 1, 2002, Jasper County has imposed two local sales and use taxes - a
1% Local Option Tax and a 1% Jasper School Tax. Jasper County has imposed the 1% Local
Option Tax since July 1, 1991. From May 1, 1999 through November 30, 2002, Jasper County
imposed a 1% Capital Projects Tax in addition to the 1% Local Option Tax.
Note #3: Since May 1, 2009, Chester County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. Chester County has imposed the 1% Local
Option Tax since May 1, 1994. Chester County had previously imposed another 1% Capital
Projects Tax for the period of May 1, 1999 through April 30, 2000.
Note #4: Since September 1, 2000, Chesterfield County has imposed two local sales and use
taxes - a 1% Local Option Tax and a 1% Chesterfield School Tax. Chesterfield County has
imposed the 1% Local Option Tax since May 1, 1997.
Note #5: Since May 1, 2009, Allendale County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. Allendale County has imposed the Local
Option Tax since May 1, 1992 and previously imposed a 1% Capital Projects Tax from May 1,
2001 until December 31, 2006. In November 2008, the citizens of Allendale County voted to
impose a 1% Capital Projects Tax again, but the vote was not timely certified, which would have
postponed the imposition of the tax until May 1, 2010. On February 25, 2009, the Governor
signed Act No. 84 of 2009, making the 1% Capital Projects Tax in Allendale County effective
May 1, 2009.

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Note #6: Effective July 1, 2012, Beaufort County imposes no local sales and use tax and only
imposes the state sales and use tax. Beaufort County imposed a 1% Transportation Tax from
June 1, 1999 until November 30, 2000. In November 2006, the citizens of Beaufort County voted
to impose a 1% Transportation Tax again, but the vote was not timely certified, which would
have postponed the imposition of the tax until May 1, 2008. On February 19, 2006, the Governor
signed Act No. 123 of 2007, making the 1% Transportation Tax in Beaufort County effective
May 1, 2007. This 1% Transportation Tax expired at midnight on June 30, 2012.
Note #7: Since October 1, 2008, Dillon County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% School District Tax. Dillon County has imposed the 1% Local
Option Tax since May 1, 1996. From May 1, 2003 until September 30, 2008, Dillon County
imposed a 1% Capital Projects Tax in addition to the 1% Local Option Tax.
Note #8: Since March 1, 2011, Charleston County has imposed three local sales and use taxes - a
1% Local Option Tax, a 1/2 of 1% Transportation Tax, and a 1% Education Capital Improvement
Tax. Charleston County has imposed the 1% Local Option Tax since July 1, 1991 and the 1/2 of
1% Transportation Tax since May 1, 2005. Prior to enacting the Transportation Tax, Charleston
County was scheduled to impose another 1/2 of 1% Transportation Tax in May of 2003, but the
tax was not imposed as a result of a South Carolina Supreme Court decision.
Note #9: Since May 1, 2013, Hampton County has imposed two local sales and use taxes - a 1%
Local Option tax and a 1% Capital Projects Tax. Hampton County has imposed the 1% Local
Option Tax since July 1, 1991. Hampton County previously imposed a 1% Capital Projects Tax
from May 1, 2003 until December 31, 2009.
Note #10: Since February 1, 2004, Darlington County imposes two local sales and use taxes - a
1% Local Option Tax and a 1% Darlington School Tax. Darlington County has imposed the 1%
Local Option Tax since May 1, 1997.
Note #11: Since June 1, 2004, Clarendon County has imposed two local sales and use taxes - a
1% Local Option Tax and a 1% Clarendon Schools Tax. Sales of foods that are eligible to be
purchased with United States Department of Agriculture food stamps, which were exempt from
the 1% Clarendon School Tax for the period of June 1, 2004 through June 30, 2005, are subject
to the 1% Clarendon School Tax effective July 1, 2005, pursuant to Act No. 195 of 2005.
Clarendon County has imposed the 1% Local Option Tax since May 1, 1997.
Note #12: Whether the State sales and use tax or the Catawba Tribal sales and use tax for sales
(deliveries) made on the Catawba Indian Reservation applies is determined by the Catawba
Indian Claims Settlement Act (Chapter 16, Title 27, South Carolina Code of Laws). The
provisions specific to sales and use tax are in Code Section 27-16-130(H).

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The Catawba Tribal sales and use tax expires on November 28, 2092.
The following chart provides a summary of these provisions:
Delivery on the
Reservation From:
Location On the
Reservation
Location Off the
Reservation But in SC –
Sales $100 or less
Location Off the
Reservation But in SC –
Sales Over $100
Location Off the
Reservation and Outside
the State – Seller
Registered with DOR
Location Off the
Reservation and Outside
the State – Seller Not
Registered with DOR

Type Tax Applicable

Administered and
Collected By:

Tribal Sales Tax (Equal to
DOR
Combined State and Local Rate)
State Sales Tax (Local Taxes Do Not DOR
Apply.)
Tribal Sales Tax (Equal to
Combined State and Local Rate)

DOR

State Use Tax (Local Taxes Do Not
Apply.)

DOR

Tribal Use Tax (Equal to
Combined State and Local Rate*)

Catawba Indian Tribe

• Lancaster County imposes a 1% local option sales and use tax and a 1% Capital Projects Tax.
  York County imposes a 1% Capital Projects sales and use tax. These local taxes are in addition
  to the State sales and use tax. Therefore, effective January 1, 2012, the tribal sales tax and the
  tribal use tax are imposed at the following rates:
  For sales (deliveries) made on the Reservation within Lancaster County:
  8% for general sales of tangible personal property
  9% for sales of accommodations
  2% for sales of unprepared foods
  For sales (deliveries) made on the Reservation within York County:
  7% for general sales of tangible personal property
  8% for sales of accommodations
  0% for sales of unprepared foods 10
  Please note that the rate for the tribal sales tax and the tribal use tax may increase or decrease
  dependent upon whether the total state and local sales and use tax rates change in Lancaster
  County or York County in the future.
  For additional information, see SC Revenue Ruling #98-18.
  10

York County “re-imposed” its 1% Capital Projects Tax effective January 1, 2012. The prior 1% Capital Projects
Tax imposed in York County expired on December 31, 2011 and the new Capital Projects Tax became effective the
next day on January 1, 2012. In addition, the new 1% Capital Projects Tax in York County exempts sales of
unprepared food effective January 1, 2012.

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Note #13: Maximum Tax Items: For sales (deliveries) made on the Reservation of tangible
personal property subject to the maximum tax provisions, the tribal sales and use tax rate is 5%
in each county (since the state sales and use tax on maximum tax items is 5% and maximum tax
items are exempt from all local sales and use taxes), but the tax may not exceed the maximum
tax set forth in Code Section 12-36-2110.
Casual Excise Tax Items: Counties imposing a local sales and use tax that do not exempt casual
excise tax items will impose the local tax on sales and purchases of (a) trailers that can be pulled
by vehicles other than truck tractors, (b) sales of pole trailers and (c) sales of boat motors not
attached to a boat at the time of sale. Therefore, for sales (deliveries) of these trailers and boat
motors made on the Reservation within each county, the tribal sales and use tax rate is 7% (since
only the local option tax in Lancaster County exempts these casual excise items).
“Grandfather Clause” Exemption for Certain Purchases By Construction Contractors: As a result
of any increase in the tribal sales and use tax rate due to the imposition of a new local sales and
use tax in either Lancaster County or York County, there is an exemption from the portion of the
tribal sales and use tax represented by the new local sales and use tax for certain purchases by
construction contractors. For more information about this partial exemption, see the discussion
earlier in this information letter concerning “Grandfather Clause” Exemption for Certain
Purchases By Construction Contractors and the Special Exemption Certificate.
Note #14: Since May 1, 2013, Lee County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. Lee County has imposed the 1% Local Option
Tax since May 1, 1996. Lee County previously imposed a 1% School District Tax from October
1, 2006 until September 30, 2011.
Note #15: Since May 1, 2007, Florence County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. The original Capital Projects Tax was imposed
from May 1, 2007 until April 30, 2014, and a new Capital Projects Tax was “re-imposed”
effective the next day on May 1, 2014. Because the referendum was held after June 3, 2009, the
new Capital Projects Tax in Florence County exempts sales of unprepared food effective May 1,
2014, pursuant to Act No. 49 of 2009.
Note #16: Since May 1, 2014, Horry County has imposed only a 1% Education Capital
Improvement Tax. From March 1, 2009 until April 30, 2014, Horry County imposed two local
sales and use taxes - the Education Capital Improvement Tax and a 1% Capital Projects Tax.
Horry County first imposed the Capital Projects Tax on May 1, 2007.
Note #17: Since May 1, 2009, Berkeley County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Transportation Tax. Berkeley County has imposed the Local Option
Tax since May 1, 1997.
Note #18: Beginning March 1, 2015, Cherokee County will impose two local sales and use taxes

• a 1% Local Option Tax and a 1% Education Capital Improvement Tax. From May 1, 2009
  through February 28, 2015, Cherokee County also had imposed two local sales and use taxes - a
  1% School District Tax and a 1% Local Option Tax. Cherokee County began imposing the
  School District Tax on July 1, 1996.
  14

Note #19: Since May 1, 2009, Lancaster County has imposed two local sales and use taxes - a
1% Local Option Tax and a 1% Capital Projects Tax. Lancaster County has imposed the Local
Option Tax since May 1, 1992.
Note #20: Since May 1, 2009, Sumter County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. Sumter County has imposed the Local Option
Tax since May 1, 1996.
Note #21: York County has “re-imposed” its 1% Capital Projects Tax. The original Capital
Projects Tax was imposed from October 1, 2004 until December 31, 2011, and the new Capital
Projects Tax went into effect the next day on January 1, 2012. Because the referendum was held
after June 3, 2009, the new Capital Projects Tax in York County exempts sales of unprepared
food effective January 1, 2012, pursuant to Act No. 49 of 2009.
Note #22: Newberry County has “re-imposed” its 1% Capital Projects Tax. The original Capital
Projects Tax was imposed from April 1, 2005 until March 31, 2012, and the new Capital Projects
Tax went into effect the next day on April 1, 2012. Because the referendum was held after June
3, 2009, the new Capital Projects Tax in Newberry County exempts sales of unprepared food
effective April 1, 2012, pursuant to Act No. 49 of 2009.
Note #23: Effective July 1, 2012, Greenwood County imposes no local sales and use tax and
only imposes the state sales and use tax. Greenwood County imposed a 1% Capital Projects Tax
from May 1, 2007 through June 30, 2012.
Note #24: Since March 1, 2005, Lexington County has imposed a 1% School District Tax. The
School District Tax was scheduled to expire on February 29, 2012 but was extended for seven
years by Act No. 88 of 2012.
Note #25: The Counties of Georgetown, Greenville, Oconee, Spartanburg, and Union have never
imposed a local sales and use tax. However, this information letter does not address local taxes
on sales of accommodations or on sales of prepared meals that are collected directly by the
counties or municipalities.
Note #26: Beginning March 1, 2015, Aiken County will impose two local sales and use taxes - a
1% Capital Projects Tax and a 1% Education Capital Improvement Tax. Aiken County “reimposed” its 1% Capital Projects Tax effective January 1, 2013. The original Capital Projects
Tax was imposed from April 1, 2006 until December 31, 2012. Because the referendum was held
after June 3, 2009, the new Capital Projects Tax in Aiken County exempts sales of unprepared
food effective January 1, 2013, pursuant to Act No. 49 of 2009.
Note #27: Since February 1, 2013, Marlboro County has imposed two local sales and use taxes a 1% Local Option Tax and a 1% School District Tax. Marlboro County has imposed the 1%
Local Option Tax since May 1, 1992.
Note #28: Since May 1, 2013, Marion County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. Marion County has imposed the Local Option
Tax since July 1, 1991.
15

Note #29: Since May 1, 2013, Bamberg County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Capital Projects Tax. Bamberg County has imposed the Local
Option Tax since May 1, 1992.
Note #30: Since May 1, 2013, Richland County has imposed two local sales and use taxes - a 1%
Local Option Tax and a 1% Transportation Tax. Richland County has imposed the Local Option
Tax since May 1, 2005.
Note #31: Orangeburg County has “re-imposed” its 1% Capital Projects Tax. The original
Capital Projects Tax was imposed from April 1, 2006 until March 31, 2013, and the new Capital
Projects Tax went into effect the next day on April 1, 2013. Because the referendum was held
after June 3, 2009, the new Capital Projects Tax in Orangeburg County exempts sales of
unprepared food effective April 1, 2013, pursuant to Act No. 49 of 2009.
Note #32: Beginning March 1, 2015, Anderson County will impose a 1% Education Capital
Improvement Tax. This will be the first local sales and use tax imposed by Anderson County.
These charts only address the general local option taxes collected by the Department of
Revenue on behalf of the counties, municipalities, school districts, and the Catawba Indian
tribal government. They do not address the local taxes on sales of accommodations or on
sales of prepared meals that are collected directly by the counties or municipalities.

16