Which South Carolina local sales and use taxes and exemptions applied beginning May 1, 2020, including on the Catawba Reservation?

View original ruling (PDF)

Plain-English summary

SC Information Letter #20-2 is the Department's local sales-tax map effective May 1, 2020. Its three charts show county sales and use taxes, the Catawba Indian Reservation tribal tax, and Myrtle Beach's tourism-development tax, together with the exemptions available under each. It supersedes SC Information Letter #19-16.

The update records one county change: Orangeburg County's Capital Projects Tax, which was set to expire April 30, 2020, was reimposed beginning May 1, 2020. The letter also notes that certain other county local taxes would be reimposed in 2021 and would be addressed in a future update.

Most general local sales and use taxes follow state exemptions, but unprepared food requires tax-by-tax review: unprepared food is exempt from a local tax only when the law authorizing that particular local tax provides the exemption. Eligible examples include food intended for home consumption, food-growing seeds and plants, and cold take-home items. Hot ready-to-eat food, alcohol, tobacco, food eaten on premises, pet food, and nonfood household goods do not qualify.

The construction-contractor "grandfather" rule requires both a qualifying pre-imposition contract or written bid and a verified copy of the contract submitted to the Department within six months after imposition. A contractor uses Form ST-10-C to apply and, if approved, receives Form ST-585 covering building materials for that one contract; the certificate does not exempt state tax and may not be shared between a prime contractor and a subcontractor.

For deliveries on the Catawba Reservation, the letter lists tribal rates that differ by county because the Reservation lies in both Lancaster and York Counties. On the Lancaster County portion: 8% general sales / 9% accommodations / 1% unprepared food. On the York County portion: 7% general sales / 8% accommodations / 0% unprepared food. The Department administers the tribal sales tax; the Catawba Indian Tribe administers the tribal use tax.

What this means for you

Retailers making sales across South Carolina counties

Use the county chart to identify which Department-collected local taxes apply and whether the item falls within each tax's exemptions. Do not assume the same food exemption applies in every locality, and note the May 1, 2020 Orangeburg change above.

Contractors bidding before a new local tax begins

Preserve the written bid or contract date and submit the verified contract copy within six months of the tax's imposition. Each prime contractor and subcontractor must obtain its own contract-specific certificate.

Sellers delivering to the Catawba Reservation

Check the special sourcing table rather than applying an ordinary combined county rate automatically, and use the correct rate for the Lancaster-County or York-County portion of the Reservation.

Common questions

Q: Does this chart include county or municipal hospitality and accommodations taxes collected locally?
A: No. It covers general local sales and use taxes collected by the Department and expressly excludes locally collected accommodations, beach-preservation, and prepared-meal or hospitality taxes.

Q: Are unprepared foods always exempt from local tax?
A: No. They are exempt only when the law authorizing the particular local tax provides the exemption, as shown in the chart.

Q: Why are the Catawba rates listed twice?
A: The Reservation spans two counties with different local taxes, so the letter lists separate rates for the Lancaster-County portion (8%/9%/1%) and the York-County portion (7%/8%/0%).

Citations and references

• S.C. Code Ann. §§ 12-36-2120 and 12-36-2130 (state exemptions)
• S.C. Code Ann. § 12-36-2110 (maximum-tax items)
• S.C. Code Ann. § 27-16-130(H) (Catawba tax provisions)
• S.C. Code Ann. § 4-10-10 et seq. (local option tax)
• S.C. Code Ann. § 4-10-300 et seq. (capital projects tax)
• S.C. Code Ann. § 4-37-30 et seq. (transportation projects tax)
• S.C. Code Ann. § 4-10-410 et seq. (education capital improvement tax)
• SC Revenue Ruling #98-18 (Catawba tribal sales and use tax)

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/IL20-2.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #20-2
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, 2020

SUPERSEDES:

SC Information Letter #19-16

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.
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 and the types of
exemptions allowed under each tax. These charts only address the general local sales and use
taxes collected by the Department 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 2 or on sales of prepared meals 3 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
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.
3
Code Sections 6-1-700 through 6-1-770 provide for a local hospitality tax.

1

Note: This information letter is effective May 1, 2020. It is being issued to reflect that
Orangeburg County’s Capital Projects Tax, which expires on April 30, 2020, will be reimposed beginning May 1, 2020.
As of the date of this information letter, certain other county local sales and use taxes will
be re-imposed in 2021. 4 An additional information letter will be issued to reflect these
changes.
CHART 1: COUNTY SALES AND USE TAXES
(See “Types of Exemptions” section below for a brief description of each exemption listed.)
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

Abbeville

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Aiken

Capital Projects
5/1/19

Yes

Yes

No

Yes

Yes

Yes

Ed. Capital Imp.
3/1/15

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

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

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

Yes

Transportation
5/1/19

Yes

Yes

No

Yes

No

Yes

Allendale

Barnwell

Beaufort

4

The Capital Projects Taxes in Bamberg County, Lee County, and Marion County, which are set to expire on April
30, 2021, will be re-imposed beginning May 1, 2021.

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

Berkeley

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Transportation
5/1/16

Yes

Yes

No

Yes

No

Yes

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/19

Yes

Yes

No

Yes

Yes

Yes

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Transportation
5/1/05

Yes

Yes

No

Yes

No

Yes

Ed. Capital Imp.
1/1/17

Yes

Yes

No

Yes

Yes

Yes

Transportation
5/1/17

Yes

Yes

No

Yes

No

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

Ed. Capital Imp.
3/1/17

Yes

Yes

No

Yes

Yes

Yes

Calhoun

Charleston

Cherokee

Chester

Chesterfield

Clarendon

Colleton

Darlington

3

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
“GRANDFATHER
CLAUSE” EXEMPTION
FOR
FOR CERTAIN
CERTAIN
PURCHASES BY
FOOD SALES
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

Georgetown

No Local Sales and Use Tax is Imposed in this County

Greenville

No Local Sales and Use Tax is Imposed in this County

Greenwood

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

Yes

Hampton

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/13

Yes

Yes

No

Yes

Yes

Yes

Ed. Capital Imp.
3/1/09

Yes

Yes

No

Yes

Yes

Yes

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

Yes

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

School District
12/1/02

Yes

Yes

No

Yes

Yes

Yes

Transportation
5/1/17

Yes

Yes

No

Yes

No

Yes

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Ed. Capital Imp.
3/1/17

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/16

Yes

Yes

No

Yes

Yes

Yes

Horry

Jasper

Kershaw

Lancaster

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

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

Lexington

School District
3/1/19

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

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

Yes

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

Yes

Marlboro

McCormick

Newberry

No Local Sales and Use Tax is Imposed in this County

Oconee
Orangeburg

Capital Projects
5/1/20

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

Capital Projects
5/1/19

Yes

Yes

No

Yes

Yes

Yes

Capital Projects
5/1/18

Yes

Yes

No

Yes

Yes

Yes

Saluda

Spartanburg

5

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

Sumter

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/16

Yes

Yes

No

Yes

Yes

Yes

Union

Local Option
5/1/17

Yes

Yes

Yes

Yes

No

Yes

Williamsburg

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/17

Yes

Yes

No

Yes

Yes

Yes

Capital Projects
5/1/18

Yes

Yes

No

Yes

Yes

Yes

York

CHART 2: CATAWBA INDIAN RESERVATION TRIBAL TAX
(See “Types of Exemptions” section below for a brief description of each exemption listed.)
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)

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 – LOCAL TOURISM DEVELOPMENT
SALES AND USE TAX
(See “Types of Exemptions” section below for a brief description of each exemption listed.)
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
8/1/19

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

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 is 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 4-10-510 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. 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

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.
Depending on the criteria met, this tax may be imposed for up to 15 years.
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. These taxes are imposed
countywide, whether imposed by the county or one or more school districts.
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
Dillon
Jasper
Lexington
Marlboro

Act No. 441 of 2000
Act No. 355 of 2004 and Act No. 195 of 2005
Act No. 137 of 2007
Act No. 146 of 2001
Act No. 378 of 2004, Act No. 88 of 2011, and
Act No. 278 of 2018
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 27-16130(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 additional 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. 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.
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, see SC Revenue
Ruling #18-15.
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, 5 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” in this
column of the above charts.
Note: Code Section 12-36-2120(83) exempts from state and local sales and use tax the sale or
purchase of each vehicle or other item that is subject to an infrastructure maintenance fee under
Code Section 56-3-627. The infrastructure maintenance fee is due when the vehicle or other item
is first registered with the South Carolina Department of Motor Vehicles pursuant to Chapter 3
of Title 56. See SC Information Letter #17-10 and SC Revenue Ruling #18-1.
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.,
boats, motors,6 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.
Exemption for Food Stamp Purchases: Sales of food purchased with food 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 foods 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.

5

Pole trailers and trailers that can be pulled by vehicles other than truck tractors are not maximum tax items under
Code Section 12-36-2110 and are subject to the local sales and use tax.
6
As of the date of this information letter, all casual excise tax items listed under Code Section 12-36-1710, except
for boat motors not attached to a boat at the time of sale, are also maximum tax items under Code Section 12-362110. Therefore, boat motors not attached to a boat at the time of sale are exempt from local sales and use taxes only
if there is a “Yes” in the “Casual Excise Items” column of the above charts.

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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
   P.O. Box 125
   Columbia, SC 29214-0400
   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.

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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 Tax for Construction Contractors") 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-585). 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-585) 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 #1 and #2:
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:

Type Tax Applicable

Administered and
Collected By:

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

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.

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As of the date of this information letter, 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
1% for sales of unprepared foods 7
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
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 does not exempt
casual excise tax items will impose the local tax on sales and purchases of boat motors not
attached to a boat at the time of sale.
Therefore, for sales (deliveries) of 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 casual excise tax 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.
7

The Capital Projects Tax in Lancaster County exempts sales of unprepared food; however, the 1% Local Option Tax
does not exempt sales of unprepared food.

12