What South Carolina tax interest rate applied from October 1 through December 31, 2021?

Plain-English summary

South Carolina's listed tax interest rate was 3% from October 1 through December 31, 2021. It applied to tax underpayments and overpayments under § 12-54-25.

Interest was generally compounded daily. The stated exception was an underpayment of declaration of estimated tax, which used simple interest.

For fiscal year July 1, 2021 through June 30, 2022, Act No. 94, Provisos 41.2 and 117.83 required the Department to reduce interest paid on eligible refunds by three percentage points. Applied to the listed 3% rate, eligible refund interest was 0% during this quarter.

What this means for you

The historical rate for an unpaid South Carolina tax balance during this quarter was 3%, generally compounded daily. A taxpayer eligible for interest on a refund did not receive the full listed rate because the budget reduction lowered it to zero. Use the rate notice for each period when a balance spans multiple quarters.

Common questions

Q: What was the listed rate for October through December 2021?
A: 3%.

Q: What was the eligible refund rate during the quarter?
A: 0% after the three-percentage-point budget reduction.

Q: Was interest compounded?
A: Generally daily; an underpayment of declaration of estimated tax used simple interest.

Citations and references

• S.C. Code Ann. § 12-54-25
• 2021 S.C. Act No. 94, Provisos 41.2 and 117.83
• S.C. Code Ann. § 12-4-320
• SC Revenue Procedure #09-3

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL21-23.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 #21-23
SUBJECT:

Interest Rate

DATE:

August 26, 2021

REFERENCE:

S.C. Code Ann. Section 12-54-25 (2014)
2021 S.C. Act No. 94, Provisos 41.2 and 117.83

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.

The interest rate to be applied to underpayments and overpayments* of taxes is listed below. The rate is
compounded daily except simple interest applies to the underpayment of declaration of estimated tax.
Period

Rate*

Period

09/01/85 – 12/31/85
01/01/86 – 06/30/86
07/01/86 – 09/30/87
10/01/87 – 12/31/87
01/01/88 – 03/31/88
04/01/88 – 09/30/88
10/01/88 – 03/31/89
04/01/89 – 09/30/89
10/01/89 – 03/31/91
04/01/91 – 12/31/91
01/01/92 – 03/31/92
04/01/92 – 09/30/92
10/01/92 – 06/30/94
07/01/94 – 09/30/94
10/01/94 – 03/31/95
04/01/95 – 06/30/95

11%
10%
9%
10%
11%
10%
11%
12%
11%
10%
9%
8%
7%
8%
9%
10%

07/01/95 – 03/31/96
04/01/96 – 06/30/96
07/01/96 – 03/31/98
04/01/98 – 12/31/98
01/01/99 – 03/31/99
04/01/99 – 03/31/00
04/01/00 – 03/31/01
04/01/01 – 06/30/01
07/01/01 – 12/31/01
01/01/02 – 12/31/02
01/01/03 – 09/30/03
10/01/03 – 03/31/04
04/01/04 – 06/30/04
07/01/04 – 09/30/04
10/01/04 – 03/31/05
04/01/05 – 09/30/05

Rate*
9%
8%
9%
8%
7%
8%
9%
8%
7%
6%
5%
4%
5%
4%
5%
6%

Period

Rate*

10/01/05 – 06/30/06
07/01/06 – 12/31/07
01/01/08 – 03/31/08
04/01/08 – 06/30/08
07/01/08 – 09/30/08
10/01/08 – 12/31/08
01/01/09 – 03/31/09
04/01/09 – 12/31/10
01/01/11 – 03/31/11
04/01/11 – 09/30/11
10/01/11 – 03/31/16
04/01/16 – 03/31/18
04/01/18 – 12/31/18
01/01/19 – 06/30/19
07/01/19 – 06/30/20
07/01/20 – 12/31/21

7%
8%
7%
6%
5%
6%
5%
4%
3%
4%
3%
4%
5%
6%
5%
3%

*Note reduction of interest rate on refunds. For fiscal year 2021-2022 (July 1, 2021 through June
30, 2022), Budget Provisos 41.2 and 117.83 directs the Department to reduce the rate of interest
paid on eligible refunds by a total of three percentage points from the above listed rates. 2021 S.C.
Act No. 94, Provisos 41.2 and 117.83.