How does the new infrastructure maintenance fee change sales tax on vehicle sales for South Carolina dealers effective July 1, 2017 (per SC IL #17-10)?
Apply this to your situation
This page answers the general question as of 2017. Ezel answers yours, under current South Carolina tax law, with citations.
Plain-English summary
This Information Letter is a Revised notice to motor vehicle, motorcycle, and trailer dealers and retailers explaining the new infrastructure maintenance fee (IMF) created by Act No. 40, effective July 1, 2017. It is the dealer-facing companion to the Department's overview letter, SC Information Letter #17-8.
The core change: when a vehicle, trailer, semitrailer, or other item that must be registered under Title 56, Chapter 3 is first registered with the SC Department of Motor Vehicles, the owner pays the IMF — 5% of the sale's gross proceeds (for a licensed SCDMV dealer sale) or 5% of the vehicle's fair market value (for a non-dealer sale), not to exceed $500 — remitted to the SCDMV. For vehicles of the type registered in South Carolina, this fee takes the place of the sales and use tax (which for such vehicles had been a "maximum tax" item under § 12-36-2110(A)(1)).
Two related points the notice covers:
- Casual excise tax narrowed. Beginning July 1, 2017, the casual excise tax no longer applies to motor vehicles and motorcycles — it applies only to aircraft, boats, and boat motors.
- Nonresident sales. The notice includes charts for vehicles purchased in South Carolina by nonresidents who will register in their home state, explaining when South Carolina sales tax applies and when it does not.
This is administrative guidance for dealers, not a ruling on any single taxpayer's liability.
What this means for you
If you are a vehicle, motorcycle, or trailer dealer
Collect and remit the infrastructure maintenance fee (5% of price, capped at $500) to the SCDMV on registrable vehicles instead of the old sales/use tax treatment, and stop applying casual excise tax to motor vehicles and motorcycles as of July 1, 2017. Follow the notice's charts for nonresident purchasers.
If you are buying a vehicle
Your registration cost now includes the infrastructure maintenance fee — 5% of the price or fair market value, up to a $500 maximum.
Common questions
Q: What is the infrastructure maintenance fee and its cap?
A: A fee paid to the SCDMV at first registration — 5% of gross proceeds (dealer sale) or 5% of fair market value (non-dealer sale), not to exceed $500.
Q: Does the casual excise tax still apply to cars?
A: No. Beginning July 1, 2017 the casual excise tax applies only to aircraft, boats, and boat motors, not motor vehicles or motorcycles.
Q: How does this relate to SC Information Letter #17-8?
A: #17-8 is the Department's general overview of the Act's changes; this letter (#17-10, Revised) is the detailed dealer-facing notice on the infrastructure maintenance fee.
Subject
South Carolina Infrastructure and Economic Development Reform Act
Source
- Landing page: https://dor.sc.gov/advisory-opinion-search
- Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL17-10.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 #17-10 (Revised) 1
SUBJECT:
South Carolina Infrastructure and Economic Development Reform Act
DATE:
June 27, 2017
REFERENCE:
Act No. 40 (Enacted May 10, 2017)
AUTHORITY:
S.C. Code Ann. Section 12-4-320 (2014)
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.
NOTICE TO MOTOR VEHICLE, MOTORCYCLE, AND TRAILER
DEALERS AND RETAILERS
Overview of New Infrastructure Maintenance Fee:
The General Assembly recently enacted the South Carolina Infrastructure and Economic
Development Reform Act to address the needs of South Carolina’s transportation infrastructure
system and to set the State on the path towards a first-class road network. As part of its effort to
improve the State’s transportation infrastructure network, a new infrastructure maintenance fee
has been enacted that will become effective July 1, 2017.
Registration in South Carolina upon Purchase or Lease: The owner of each vehicle, trailer,
semitrailer or other item that must be registered pursuant to Chapter 3 of Title 56 must pay the
infrastructure maintenance fee upon first registering the vehicle, trailer, semitrailer or other item
with the SC Department of Motor Vehicles (“SCDMV”). The infrastructure maintenance fee is
remitted to SCDMV and is imposed at a rate of 5% of the gross proceeds of the sale, not to
exceed $500, for a sale by a licensed SCDMV dealer or 5% of the vehicle’s fair market value,
not to exceed $500, for a sale by a person who is not an SCDMV licensed dealer.
Sales that are subject to the new infrastructure maintenance fee are exempt from the State and
local sales and use taxes.
1
See additional information on page 4.
If a dealer has a South Carolina retail license or offers to license and register the item, then the
dealer must collect the infrastructure maintenance fee and remit it to SCDMV. Generally, based
on information from SCDMV, a dealer is a person in the business of selling motor vehicles (e.g.,
cars, trucks, motorcycles, and motor homes) that is licensed with SCDMV. A dealer also
includes, effective November 19, 2018, a person licensed with SCDMV in the business of selling
mopeds.
Registration in South Carolina after First Registration in Another State: The infrastructure
maintenance fee is also imposed when a vehicle, trailer, semi-trailer or other item required to be
registered under Chapter 3 of Title 56 was first registered in another state by the owner and is
subsequently registered for the first time in South Carolina by the same owner. This
infrastructure maintenance fee is $250.
Charts for Dealers, Other Retailers, and Nonretailers:
The Department of Revenue, in coordination with the Department of Motor Vehicles, has
prepared several charts to assist dealers and other retailers in determining: (1) whether the sale is
subject to the new infrastructure maintenance fee or the sales and use tax; (2) whether to remit
the infrastructure maintenance fee to the Department of Motor Vehicles or remit the sales and
use tax on sales to nonresidents to the Department of Motor Vehicles or the Department of
Revenue; and (3) the rate of the infrastructure maintenance fee or the sales and use tax.
Attached are three charts that address the following categories of sales, with each chart providing
information concerning the type of vehicle, the fee or tax that applies to the transaction, the fee
or tax rate, and the maximum fee or tax (if applicable):
•
Chart 1: Motor Vehicles and Other Items Purchased and Registered in South Carolina by
a South Carolina Resident and Other Items Purchased by a South Carolina Resident
•
Chart 2: Motor Vehicles and Other Items Purchased in South Carolina by a Nonresident
to be Registered or Used Outside of South Carolina
•
Chart 3: Motor Vehicles and Other Items Previously Registered Outside of South
Carolina
Chart 1 and Chart 2 address three types of transactions – (1) purchases from licensed SCDOR
retailers who are also licensed SCDMV dealers (e.g., a motor vehicle dealership); (2) purchases
from licensed SC DOR retailers who are not licensed SCDMV dealers (e.g., a retailer selling
motor vehicles from its delivery fleet); and (3) purchases from nonretailers (e.g., a casual sale by
an individual).
2
General Summary:
While these charts provide information about many different types of vehicles and other items, it
is not an all-inclusive list of transactions. The application of the new infrastructure maintenance
fee or the sales and use tax can generally be summarized as follows (unless the transaction is
otherwise exempt):
General Rule:
•
If the vehicle is required to be registered and is registered with the Department of Motor
Vehicles, the Infrastructure Maintenance Fee applies and is remitted to the Department of
Motor Vehicles.
•
If the vehicle is of a type that is not required to be registered with the Department of
Motor Vehicles, then the sales tax would apply and is remitted to the Department of
Revenue (e.g., a utility trailer for personal use).
Sales to Nonresidents:
•
If the vehicle is subject to the maximum tax provisions of Code Section 12-362110(A)(1) (e.g., motor vehicle, motorcycle, recreational vehicle), is of the type that
would be registered in South Carolina if not for it being registered out-of-state, and is
sold by a SCDMV licensed dealer to a nonresident who will register it in his home state,
then the sales tax applies and is remitted to the Department of Motor Vehicles. (Note:
The sales tax imposed on such sales to a nonresident by a person who is not a licensed
SCDMV dealer are remitted to the Department of Revenue.)
However, based on Code Section 12-36-930 and Code Section 12-36-2120, the sales tax
is not due if (1) the purchaser’s state of residence does not impose a sales tax on motor
vehicles, trailers, semitrailers or pole trailers, (2) the purchaser’s state of residence does
not allow a credit against their use tax for sales tax paid on such items in South Carolina,
or (3) the sale is otherwise exempt from the sales tax.
•
If the vehicle is not subject to the maximum tax provisions of Code Section 12-362110(A)(1) and is sold to a nonresident who will register it in his home state, then the
sales tax applies and it is remitted to Department of Revenue.
Casual Excise Tax:
•
The casual excise tax will no longer apply to motor vehicles and motorcycles. Beginning
July 1, 2017, the casual excise tax will only apply to aircraft, boats and boat motors. The
infrastructure maintenance fee, however, is paid at the time of registration.
The attached charts provides the applicable rate for the infrastructure maintenance fee or the
sales and use tax for each of the above scenarios and also provide general information, including
information on exemptions for active duty military members.
3
Additional Information:
This information letter, SC Information Letter #17-10, was originally issued on June 27, 2017.
The attached charts were published as “drafts” at that time to provide immediate guidance. This
revision of SC Information Letter #17-10 does not change the original charts. It only removes the
“Draft” status of the charts and finalizes the charts as of December 12, 2017. For more detailed
information about these changes, and for other changes that became effective July 1, 2017 (e.g.,
motor fuel user fee increase, maximum sales and use tax increase from $300 to $500 on certain
items), see SC Information Letter #17-8.
If you have questions regarding the new infrastructure maintenance fee remitted to the
Department of Motor Vehicles, or sales taxes remitted by licensed SCDMV dealers to the
Department of Motor Vehicles on sales to nonresidents, please contact the Department of Motor
Vehicles at [email protected].
If you have questions regarding all other sales and use tax matters, please contact the Department
of Revenue at (803) 898-5000 or [email protected].
4
ITEMS SUBJECT TO SALES/USE TAX
OR INFRASTRUCTURE MAINTENANCE FEE (IMF)
- Effective July 1, 2017 -
CHART 1:
ITEM PURCHASED
Motor Vehicle
(Including Low Speed Vehicles &
State/County/Local Government
Vehicles with a plate class of SG,
CG, MG, or RG)
(Maximum Sales Tax Item)
MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND REGISTERED
IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT AND
OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
IMF Remitted by
Dealer to DMV
5% up to $500
No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
Motorcycle
(Maximum Sales Tax Item)
IMF Remitted by
Dealer to DMV
5% up to $500
US Government Vehicle
Exempt
No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
Exempt
(See S.C. Code § 12-36-2120(2))
5
PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
CHART 1:
ITEM PURCHASED
MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND REGISTERED
IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT AND
OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
Motor Homes
(Maximum Sales Tax Item)
IMF Remitted by
Dealer to DMV
5% up to $500
No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
Moped
(Purchased on or after
November 19, 2018 See 2017 Act No. 89)
(Maximum Sales Tax Item)
Moped
(Purchased prior to
November 19, 2018)
IMF Remitted by
Dealer to DMV
5% up to $500
No IMF Collected by Retailer
PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction
6
CHART 1:
ITEM PURCHASED
MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND REGISTERED
IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT AND
OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
Trailer or Semitrailer,
Pulled by a Truck Tractor
(Maximum Sales Tax Item)
No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
No IMF Collected by Retailer
PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
Pole Trailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83) or
S.C. Code § 12-36-2120(16)
Utility Trailers, Boat Trailers, and
Farm Trailers - Business Use
No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
7
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
CHART 1:
MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND REGISTERED
IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT AND
OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
Utility Trailers, Boat Trailers, and
Farm Trailers - Personal Use
Sales Tax Remitted by Retailer to DOR
6% + Local (Unless Exempt Under
S.C. Code § 12-36-2120(16))
No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction
Horse Trailer
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $500
No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction
ITEM PURCHASED
Recreational Vehicles
Pulled by a Motor Vehicle
(Tent Campers, Travel Trailers,
Park Models, Park Trailers,
and Fifth Wheels)
(Maximum Sales Tax Item)
Dirt Bikes (Off Road)
(Maximum Sales Tax Item)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
No IMF Collected by Retailer
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500
Sales Tax Remitted by Retailer to DOR
5% up to $500
No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction
No Sales Tax Collected by Seller
Aircraft
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $500
8
Buyer Remits Casual Excise Tax to DOR
Upon Issuance of Certificate of Title, or
Other Proof of Ownership
5% up to $500
CHART 1:
ITEM PURCHASED
MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND REGISTERED
IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT AND
OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax Collected by Seller
Boat or Boat with Motor
Permanently Attached
at Time of Sale
(Maximum Sales Tax Item)
Boat Motor
(Not permanently attached
to boat at time of sale)
(Not a Maximum Sales Tax Item)
Golf Carts, ATVs, and Go-Carts
Professional Race Cars Towed
to or from a Race Track
Single Family Modular Home
(Ch. 43, Title 23)
Musical Instrument/Office
Equipment Purchased by IRC §
501(c)(3) Religious Organization
(Maximum Sales Tax Item)
Manufactured Home
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $500
Buyer Remits Casual Excise Tax to DOR or
DNR Upon Issuance of Certificate of Title, or
Other Proof of Ownership
5% up to $500
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales Tax Collected by Seller
Note: Local Sales/Use Taxes Apply
Except for the Local Option Tax in
S.C. Code § 4-10-20
Buyer Remits Casual Excise Tax to DOR or
DNR Upon Issuance of Certificate of Title, or
Other Proof of Ownership
6%
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales or Casual Excise Tax
Due on Transaction
Sales Tax Remitted by Retailer to DOR
6% + Local
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales Tax, Casual Excise Tax or
IMF Due on Transaction
No Sales or Casual Excise Tax
Due on Transaction
Sales Tax Remitted by Retailer to DOR
5% up to $300
(See S.C. Code § 12-36-2110(C))
No Sales or Casual Excise Tax
Due on Transaction
Sales Tax Remitted by Retailer to DOR
(See S.C. Code § 12-36-2110(B))
No Sales or Casual Excise Tax
Due on Transaction
(See General Information for Chart 1 on the Following Page)
9
CHART 1 GENERAL INFORMATION
Maximum Tax Items (5% up to $500) under S.C. Code § 12-36-2110(A)
• Motor Vehicle
• Motorcycle
• Trailer or Semitrailer, capable
of being pulled only by a truck
tractor
• Recreational Vehicles including
Tent Campers, Travel Trailers,
Park Models, Park Trailers,
Motor Homes, and Fifth Wheels
• Horse Trailer
• Fire Safety Education Trailer
• Self-Propelled Light
Construction Equipment with
compatible attachments limited
to a maximum of 160 net engine
horsepower
• Boat
• Aircraft, including
unassembled aircraft to be
assembled by the purchaser,
but not items to be added to
the unassembled aircraft
Sales and Use Tax Exemptions
Chart 1 provides the tax rate and maximum tax (if applicable) for various sales and use tax transactions. Notwithstanding the above, some sales may be exempt
under S.C. Code § 12-36-2120 (e.g., farm trailers used in planting, cultivating and harvesting of farm crops - S.C. Code § 12-36-2120(16)) and therefore not
subject to the tax.
Purchases by Nonresidents for First Registration or Use in South Carolina
Chart 1 concerns motor vehicles and other items that are purchased and registered in South Carolina by South Carolina residents. However, Chart 1 also applies
to motor vehicles and other items purchased by nonresidents that are first registered in South Carolina with the SC Department of Motor Vehicles ("SCDMV")
(i.e., subject to the Infrastructure Maintenance Fee) or are purchased by nonresidents for use in South Carolina (sales or use tax), unless otherwise exempt.
Out-of-State Delivery by a Retailer or by a Common Carrier on Behalf of a Retailer
Notwithstanding the above, a sale is exempt from state and local sales and use tax if the seller, by contract of sale, is obligated either (1) to deliver the item to the
buyer (or an agent or donee of the buyer) at a point outside of South Carolina, or (2) to deliver the item to a common carrier or the US mail for transportation to
the buyer (or an agent or donee of the buyer) at a point outside of South Carolina. See S.C. Code § 12-36-2120(36).
Active Duty Military Members
See Charts 2 and 3 for information on the taxes and fees imposed on active duty military members, if any.
10
ITEMS SUBJECT TO SALES/USE TAX
OR INFRASTRUCTURE MAINTENANCE FEE (IMF)
- Effective July 1, 2017 -
CHART 2:
ITEM PURCHASED
Motor Vehicle
(Maximum Sales Tax Item)
Motor Homes
(Maximum Sales Tax Item)
Motorcycle
(Maximum Sales Tax Item)
MOTOR VEHICLES AND OTHER ITEMS PURCHASED
IN SOUTH CAROLINA BY A NONRESIDENT TO BE
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
Sales Tax Remitted by Dealer to DMV
Sales Tax Remitted by Retailer to DOR
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
See Notes 1 and 2 for exceptions
See Note 1 for exceptions
Sales Tax Remitted by Dealer to DMV
Sales Tax Remitted by Retailer to DOR
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
See Notes 1 and 2 for exceptions
See Note 1 for exceptions
Sales Tax Remitted by Dealer to DMV
Sales Tax Remitted by Retailer to DOR
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
See Notes 1 and 2 for exceptions
See Note 1 for exceptions
11
PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
CHART 2:
MOTOR VEHICLES AND OTHER ITEMS PURCHASED
IN SOUTH CAROLINA BY A NONRESIDENT TO BE
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
ITEM PURCHASED
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
Dirt Bikes (Off Road)
(Maximum Sales Tax Item)
(Not of a Type Subject to
Registration under
S.C. Code § 56-3-627)
Sales Tax Remitted by Dealer to DOR
5% up to $500
Sales Tax Remitted by Retailer to DOR
5% up to $500
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
Sales Tax Remitted by Dealer to DMV
Sales Tax Remitted by Retailer to DOR
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
See Notes 1 and 2 for exceptions
See Notes 1 and 2 for exceptions
Moped
(Purchased on or after
November 19, 2018 See 2017 Act No. 89)
(Maximum Sales Tax Item)
Recreational Vehicles
Pulled by a Motor Vehicle
(Tent Campers, Travel Trailers,
Park Models, Park Trailers,
and Fifth Wheels)
(Maximum Sales Tax Item)
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
Sales Tax Remitted by Retailer to DOR
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
See Notes 1 and 2 for exceptions
Sales Tax Remitted by Retailer to DOR
Trailer or Semitrailer of a Type
Required to be Licensed and
Registered
(Maximum Sales Tax Item)
Lesser of sales tax imposed in the
purchaser's state of residence or
5% sales tax, but no more than $500
See Notes 1 and 2 for exceptions
12
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
CHART 2:
ITEM PURCHASED
MOTOR VEHICLES AND OTHER ITEMS PURCHASED
IN SOUTH CAROLINA BY A NONRESIDENT TO BE
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
Sales Tax Remitted by Retailer to DOR
Trailer, Semitrailer, or Pole Trailer of
a Type Required to be Licensed and
Registered
(Not a Maximum Sales Tax Item)
Lesser of sales tax imposed in the
purchaser's state of residence or
6% + Local
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
See Notes 1 and 2 for exceptions
Trailer or Semitrailer of a Type Not
Required to be Licensed and
Registered
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $500
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
Trailer or Semitrailer of a Type
Not Required to be Licensed and
Registered
(Not a Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
Nonresident Military
Motor Vehicles (excluding trucks)
and Motorcycles Purchased by a NonResident Member of the Military
Located in South Carolina by Reason
of Orders of the US Armed Forces
(e.g., car, minivan, SUV, motorcycle)
(Personal Use Only)
No IMF or Sales Tax
Remitted on Transaction
No IMF or Sales Tax
Remitted on Transaction
Exempt under S.C. Code §§
12-36-2120(25) & 56-3-627(H)
regardless of state of registration
Exempt under S.C. Code §§
12-36-2120(25) & 56-3-627(H) regardless
of state of registration
13
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
CHART 2:
ITEM PURCHASED
MOTOR VEHICLES AND OTHER ITEMS PURCHASED
IN SOUTH CAROLINA BY A NONRESIDENT TO BE
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
Nonresident Military and Spouse
No IMF or Sales Tax Remitted on
No IMF or Sales Tax Remitted on
No Sales Tax or
Motor Vehicles (including trucks),
Transaction if the license, fee, or
Transaction if the license, fee, or
Casual Excise Tax
Motorcycles, Trailers and Semitrailers
excise is paid by the servicemember
excise is paid by the servicemember
Due on Transaction
Purchased by a Non-Resident
in the servicemember's State of
in the servicemember's State of
Member of the Military (including
domicile or residence.
domicile or residence.
No IMF due on Transaction if
Spouse) Located in South Carolina by
the license, fee, or
Reason of Orders of the US Armed
Exempt Under
Exempt Under
excise is paid by the
Forces
Servicemember Civil Relief Act
Servicemember Civil Relief Act
servicemember in the
(e.g., car, motor home,
See §§ 3911 (Definitions), 4001 (Exemption See §§ 3911 (Definitions), 4001 (Exemption
servicemember's State of
recreational trailer, truck,
for Personal Property), and 49 U.S. Code §
for Personal Property), and 49 U.S. Code §
domicile or residence.
minivan, SUV, motorcycle)
30102 (Definition of Motor Vehicle)
30102 (Definition of Motor Vehicle)
(Personal Use Only)
No Sales Tax or IMF Due on
Transaction
Aircraft
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $500
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No Casual Excise Tax Due,
Unless Buyer Obtains a
Certificate of Title or Other
Proof of Ownership in
South Carolina
(If Casual Excise
Tax Applies,
5% up to $500)
CHART 2:
ITEM PURCHASED
MOTOR VEHICLES AND OTHER ITEMS PURCHASED
IN SOUTH CAROLINA BY A NONRESIDENT TO BE
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
No Sales Tax or IMF Due on
Transaction
Boat or Boat with Motor Permanently
Attached
at Time of Sale
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $500
No Casual Excise Tax Due,
Unless Buyer Obtains a
Certificate of Title or Other
Proof of Ownership in
South Carolina
(If Casual Excise
Tax Applies,
5% up to $500)
No Sales Tax or IMF Due on
Transaction
Boat Motor
(Not permanently attached
to boat at time of sale)
(Not a Maximum Sales Tax Item)
Golf Carts, ATVs, and Go-Carts
Sales Tax Remitted by Retailer to DOR
6% + Local
Note: Local Sales/Use Taxes Apply Except
for the Local Option Tax in
S.C. Code § 4-10-20
No Casual Excise Tax Due,
Unless Buyer Obtains a
Certificate of Title or Other
Proof of Ownership in
South Carolina
(If Casual Excise
Tax Applies,
6% but no Local Taxes)
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
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CHART 2:
MOTOR VEHICLES AND OTHER ITEMS PURCHASED
IN SOUTH CAROLINA BY A NONRESIDENT TO BE
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
Moped
(Purchased prior to
November 19, 2018)
Sales Tax Remitted by Retailer to DOR
6% + Local
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
Musical Instrument/Office Equipment
Purchased by IRC § 501(c)(3)
Religious Organization
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
5% up to $300
See S.C. Code § 12-36-2110(C)
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
Manufactured Home
(Maximum Sales Tax Item)
Sales Tax Remitted by Retailer to DOR
See S.C. Code § 12-36-2110(B)
No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction
ITEM PURCHASED
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV
(See General Information and Notes for Chart 2 on the Following Pages)
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CHART 2 GENERAL INFORMATION
Maximum Tax Items (5% up to $500) under S.C. Code § 12-36-2110(A)
• Motor Vehicle
• Motorcycle
• Trailer or Semitrailer, capable
of being pulled only by a truck
tractor
• Recreational Vehicles including
Tent Campers, Travel Trailers,
Park Models, Park Trailers,
Motor Homes, and Fifth Wheels
• Horse Trailer
• Fire Safety Education Trailer
• Self-Propelled Light
Construction Equipment with
compatible attachments limited
to a maximum of 160 net engine
horsepower
• Boat
• Aircraft, including
unassembled aircraft to be
assembled by the purchaser,
but not items to be added to
the unassembled aircraft
Sales and Use Tax Exemptions
Chart 4 provides the tax rate and maximum tax (if applicable) for various sales and use tax transactions. Notwithstanding the above, some sales may be
exempt under S.C. Code § 12-36-2120 (e.g., farm trailers used in planting, cultivating and harvesting of farm crops - S.C. Code § 12-36-2120(16)) and
therefore not subject to the tax.
Purchases by Nonresidents for First Registration or Use in South Carolina
Chart 1 concerns motor vehicles and other items that are purchased and registered in South Carolina by South Carolina residents. However, Chart 1 also
applies to motor vehicles and other items purchased by nonresidents that are first registered in South Carolina with the SC Department of Motor Vehicles
("SCDMV") (i.e., subject to the Infrastructure Maintenance Fee) or are purchased by nonresidents for use in South Carolina (sales or use tax), unless
otherwise exempt.
Active Duty Military Members
Resident Military Members: See Chart 1 for registration or purchases by military members who are residents of South Carolina.
Nonresident Military Members: See also Chart 1 and 3 for more information on the taxes and fees imposed on nonresident active duty military members,
if any.
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CHART 2 NOTES
Note 1: Purchases by Nonresidents for Registration in the Purchaser's State of Residence
Code Section 12-36-930 provides that the sales tax due on a sale to a nonresident of a motor vehicle, trailer, semitrailer, or pole trailer that is to be
registered and licensed in the nonresident purchaser’s state of residence, is the lesser of (1) the sales tax which would be imposed on the sale in the
purchaser’s state of residence or (2) the tax that would be imposed in South Carolina.
No sales tax is due in South Carolina if (1) a nonresident purchaser cannot receive a credit in his resident state for sales tax paid to South Carolina or
(2) the nonresident's state does not impose a sales tax on the sale of a motor vehicle, trailer, semitrailer, or pole trailer.
Examples (as of July 1, 2017):
Georgia and North Carolina: Since Georgia and North Carolina do not impose a sales tax on the sale of motor vehicles, no sales tax is due in South
Carolina on a sale to a Georgia or North Carolina resident who will license and register the motor vehicle in their state of residence.
Virginia: Since Virginia does not allow a credit against its use tax for sales tax paid in South Carolina on the purchase of a motor vehicle, no sales tax is
due in South Carolina on a sale to a Virginia resident who will license and register the motor vehicle in their state of residence.
Alabama, Florida, and Tennessee: Since Alabama, Florida, and Tennessee impose a sales tax on the sale of motor vehicles and allow a credit against use
tax for sales taxes paid in South Carolina on purchases of motor vehicles, the South Carolina sales tax is due on the lesser of the sales tax imposed in the
purchaser's state of residence or 5% South Carolina sales tax, but no more than $500.
Note 2: Out-of-State Delivery by a Retailer or by a Common Carrier on Behalf of a Retailer
Notwithstanding the above, a sale is exempt from state and local sales and use tax if the seller, by contract of sale, is obligated either (1) to deliver the
item to the buyer (or an agent or donee of the buyer) at a point outside of South Carolina, or (2) to deliver the item to a common carrier or the US mail for
transportation to the buyer (or an agent or donee of the buyer) at a point outside of South Carolina. See S.C. Code § 12-36-2120(36).
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CHART 3:
MOTOR VEHICLES AND OTHER ITEMS PREVIOUSLY
REGISTERED OUTSIDE OF SOUTH CAROLINA
- Effective July 1, 2017 -
Item Previously Registered
Outside of South Carolina
Infrastructure Maintenance Fee (IMF)
Vehicle Previously Registered Out-of-State
by the Owner and Subsequently Registered in
SC for the first time by the Same Owner
Active Duty Military Member and Family
(Resident or Nonresident):
Vehicle Previously Registered Out-of-State
by Active Duty Military or Spouse/
Dependent and Subsequently Registered for
the first time in SC by Same Owner
IMF Remitted by Owner to DMV
$250
No IMF Due on Registration in South Carolina
Exempt Under S.C. Code § 56-3-627(D)(2)
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