What local sales and use taxes and Catawba tribal tax rates does South Carolina collect effective May 1, 2016 (per SC IL #16-3)?

Plain-English summary

This Information Letter is a set of three reference charts, effective May 1, 2016, 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 (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 #15-12.

The May 1, 2016 edition reflects several county changes:

• Allendale County's Capital Projects Tax expires April 30, 2016; beginning May 1, 2016 Allendale imposes only its Local Option Tax.
• The Berkeley County Transportation Tax and the Lancaster and Sumter County Capital Projects Taxes expire April 30, 2016 and are "re-imposed" the next day, May 1, 2016. The re-imposed Capital Projects Taxes in Lancaster and Sumter Counties now exempt sales of unprepared food beginning May 1, 2016.

The letter also notes that in November 2014 Charleston County voted to re-impose its Education Capital Improvement Tax, to be addressed in a later information letter.

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, 1% 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. Watch the May 1, 2016 changes in Allendale, Berkeley, Lancaster, and Sumter Counties.

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 May 1, 2016?
A: Allendale County's Capital Projects Tax expired (leaving only its Local Option Tax), and the Berkeley Transportation Tax and the Lancaster and Sumter Capital Projects Taxes were re-imposed — with the re-imposed Lancaster and Sumter Capital Projects Taxes now exempting unprepared food.

Q: What are the Catawba tribal tax rates?
A: In the Lancaster County portion, 8% general TPP / 9% accommodations / 1% 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.

Subject

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

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL16-3.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC INFORMATION LETTER #16-3

SUBJECT:

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

EFFECTIVE DATE:

May 1, 2016

SUPERSEDES:

SC Information Letter #15-12

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 from which revenues from the
state accommodations tax are 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 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 imposed on sales of accommodations 3
or on sales of prepared meals4 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 is 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.
3
Code Sections 6-1-500 through 6-1-570 provide for local accommodations taxes, and Code Sections 6-1-610
through 6-1-660 provide for beach preservation fees.
4
Code Sections 6-1-700 through 6-1-770.

1

Note: This information letter is effective May 1, 2016. It is being issued to reflect the following:
•

The Allendale County Capital Projects Tax expires on April 30, 2016, and beginning
May 1, 2016 Allendale County will only impose the Local Option Tax.

•

The Berkeley County Transportation Tax, Lancaster County Capital Projects Tax and
Sumter County Capital Projects Tax expire on April 30, 2016 and are “re-imposed”
effective the next day, on May 1, 2016. The “re-imposed” Capital Projects Taxes in
Lancaster and Sumter Counties now exempt sales of unprepared food beginning May 1,
2016.

Also in November 2014, the voters of Charleston County voted to “re-impose” the Education
Capital Improvement Tax. Another information letter will be issued at a later date to reflect
the “re-imposition” of this tax.

CHART 1: COUNTY SALES AND USE TAXES 5
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES

6

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

Abbeville

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Aiken

Capital Projects
1/1/13

Yes

Yes

No

Yes

Yes

Yes

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

Allendale

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Anderson

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

Bamberg

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Barnwell

5

“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.
6
For a description of each exemption listed in this chart, see the section of this document entitled “Types of
Exemptions.”

2

6

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

12-36-1710
EXEMPTION
FOR
CASUAL
EXCISE
ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

No Local Sales and Use Tax is Imposed in this County

Beaufort
Berkeley

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Transportation
5/1/16

Yes

Yes

No

Yes

No

Yes

Calhoun

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Charleston

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Transportation
5/1/05

Yes

Yes

No

Yes

No

Yes

Ed. Capital Imp.
3/1/11

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/09

Yes

Yes

Yes

Yes

No

Yes

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/94

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
10/1/15

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

School District
9/1/00

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

School District
6/1/04

Yes

Yes

No

Yes

No - effective
7/1/05

Yes

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/15

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

School District
2/1/04

Yes

Yes

No

Yes

Yes

Yes

Cherokee

Chester

Chesterfield

Clarendon

Colleton

Darlington

6

For a description of each exemption listed in this chart, see the section of this document entitled “Types of
Exemptions.”

3

6

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

Dillon

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

School District
10/1/08

Yes

Yes

No

Yes

Yes

Yes

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

Capital Projects
5/1/14

Yes

Yes

No

Yes

Yes

Yes

Capital Projects
5/1/15

Yes

Yes

No

Yes

Yes

Yes

Georgetown
Greenville

No Local Sales and Use Tax is Imposed in this County

Greenwood

No Local Sales and Use Tax is Imposed in this County
Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

Horry

Ed. Capital Imp.
3/1/09

Yes

Yes

No

Yes

Yes

Yes

Jasper

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

School District
12/1/02

Yes

Yes

No

Yes

Yes

Yes

Kershaw

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Lancaster

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/16

Yes

Yes

No

Yes

Yes

Yes

Laurens

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Lee

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

Hampton

6

For a description of each exemption listed in this chart, see the section of this document entitled “Types of
Exemptions.”

4

6

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

Lexington

School District
3/1/12

Yes

Yes

No

Yes

Yes

Yes

Marion

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

School District
2/1/13

Yes

Yes

No

Yes

Yes

Yes

McCormick

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Newberry

Capital Projects
4/1/12

Yes

Yes

No

Yes

Yes

Yes

Marlboro

No Local Sales and Use Tax is Imposed in this County

Oconee
Orangeburg

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

Transportation
5/1/13

Yes

Yes

No

Yes

No

Yes

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Saluda

No Local Sales and Use Tax is Imposed in this County

Spartanburg
Sumter

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/16

Yes

Yes

No

Yes

Yes

Yes

No Local Sales and Use Tax is Imposed in this County

Union
Williamsburg

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

York

Capital Projects
1/1/12

Yes

Yes

No

Yes

Yes

Yes

6

For a description of each exemption listed in this chart, see the section of this document entitled “Types of
Exemptions.”

5

CHART 2: CATAWBA INDIAN RESERVATION TRIBAL TAX 7
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF
LOCAL SALES
AND
USE TAX AND
EFFECTIVE
DATE

Catawba
Indian
Reservation

Tribal Tax
(See Notes #1
and #2)

8

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

Yes

See Note #2

See Note #2

Yes

See Note #2

See Note #2

CHART 3: MUNICIPAL SALES AND USE TAXES 9
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

10

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

Yes

Yes

No

Yes

Yes

Yes

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.

7

Chart 2 concerns the Catawba Tribal Sales and Use Tax; however, see Notes #1 and #2 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.
8
For a description of each exemption listed in this chart, see the section of this document entitled “Types of
Exemptions.”
9
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.
10
For a description of each exemption listed in this chart, see the section of this document entitled “Types of
Exemptions.”

6

Capital Projects: The local capital projects sales and use tax is authorized under Code Section 4-10300 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. 11 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.
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.

11

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

7

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%:
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 County,
where the general, combined sales and use tax rate on sales of tangible personal property is 8%, and
York County, where the general, combined sales and use tax rate is 7%. Code Section 27-16-130(H)
contains the specific sales and use tax provisions.
The tribal sales tax is administered and collected by the Department. The tribal use tax is
administered and collected by the Catawba Indian Tribe. For addition information on the Catawba
Indian Tribal Tax, including information on the specific tax rates for sales of accommodations and
unprepared food, see SC Revenue Ruling #98-18 and Notes #1 and #2 at the end 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 twothirds 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.
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. 12
12

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.

8

TYPES OF EXEMPTIONS:
State Exemptions - 12-36-2120 and 12-36-2130: 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” in this column of the above charts.
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, marked “Yes” in this column of the above charts.
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” in this column of the above charts.
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 of the above charts),
counties that impose 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.
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” in this column of the above charts.
Exemption for Certain Food Sales: Sales of certain foods are exempt from the local sales and use
tax if marked “Yes” in this column of the above charts. 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.
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
9

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.
   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.
   10

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.
CATAWBA INDIAN TRIBAL TAX-NOTES:
Note #1: 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).
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

Administered and
Collected By:

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

DOR

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

DOR

• Lancaster County imposes a 1% Local Option Tax and a 1% Capital Projects Tax. York County
  imposes a 1% Capital Projects Tax. These local taxes are in addition to the State sales and use tax.
  Therefore, as of the effective date of this information letter (May 1, 2016), the tribal sales tax and the
  tribal use tax are imposed at the following rates:
  Effective May 1, 2016, for sales (deliveries) made on the Reservation within Lancaster
  County:
  8% for general sales of tangible personal property
  9% for sales of accommodations
  1% for sales of unprepared foods 13
  13

Lancaster County “re-imposed” the 1% Capital Projects Tax effective May 1, 2016. The new Capital Projects
Tax in Lancaster County exempts sales of unprepared food effective May 1, 2016; however, the 1% local option tax
does not exempt sales of unprepared food.

11

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 14
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.
Note #2: 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 Lancaster and York Counties, 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.
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.

14

York County “re-imposed” the 1% Capital Projects Tax effective January 1, 2012. The new Capital Projects Tax
in York County exempts sales of unprepared food effective January 1, 2012.

12