SC SC Information Letter #25-5 Sales and Use Tax; Infrastructure Maintenance Fee

When does South Carolina's Infrastructure Maintenance Fee apply instead of sales and use tax, and how are boat, farm, and utility trailers now treated?

Short answer: The Infrastructure Maintenance Fee (IMF) -- 5% of the sale price or fair market value, capped at $500 -- applies instead of sales and use tax when an item must be titled or registered with the SC DMV; if the item does not have to be registered with the DMV, the regular state and local sales and use tax applies and is remitted to the Department. Updating Information Letter #22-17 to reflect Revenue Ruling #25-2, this letter provides that boat trailers under 2,500 pounds, farm trailers, and other utility trailers that belong to a 'person' and are not used to transport persons or property for consideration (privately owned and not for hire) are subject to state and local sales or use tax rather than the IMF. The letter also attaches three updated charts covering resident purchases, nonresident purchases, and items previously registered out of state (for which the IMF is a flat $250).

Apply this to your situation

This page answers the general question. Ezel answers yours, under current South Carolina tax law, with citations.

Disclaimer: This is an official South Carolina Department of Revenue Information Letter. Per the Department, an Information Letter announces general information useful in complying with the laws administered by the Department and has NO precedential value. The letter carries staggered effective dates (see the summary) but states no single issue date, so the issued date is left blank here. It supersedes SC Information Letter #22-17 and reflects SC Revenue Ruling #25-2; the attached charts are not an all-inclusive list of transactions. This summary is informational only and is not legal or tax advice. Consult a licensed South Carolina tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

South Carolina charges an Infrastructure Maintenance Fee (IMF) on many vehicles and towable items instead of the ordinary sales and use tax. This Information Letter updates the Department's earlier guidance (Information Letter #22-17) to reflect a policy change made in Revenue Ruling #25-2, and attaches three updated reference charts.

The general rule: IMF or sales tax, not both

If the item must be titled or registered with the SC DMV, the IMF applies and is paid to the DMV. The IMF is 5% of the sale price (from a licensed dealer) or fair market value (from a non-dealer), capped at $500. Sales subject to the IMF are exempt from state and local sales and use tax under § 12-36-2120(83).
If the item does not have to be registered or titled with the DMV, the regular state and local sales and use tax applies and is remitted to the Department.
An item first registered in another state and later registered in South Carolina by the same owner pays a flat $250 IMF.

The trailer change

Previously the Department treated boat, farm, and utility trailers by "personal use" vs. "business use." Under this letter (reflecting Revenue Ruling #25-2), the test is different. Boat trailers under 2,500 pounds, farm trailers, and other utility trailers that belong to a "person" (as defined in § 56-1-10(22)) and are NOT used to transport persons or property for consideration — that is, privately owned and not for hire — are subject to state and local sales or use tax rather than the IMF. Farm trailers used in planting, cultivating, or harvesting crops for sale may still be exempt under § 12-36-2120(16).

Other points the letter confirms

Watercraft (boat) motors are subject to a maximum 5% sales/use tax and casual excise tax capped at $500 (effective July 1, 2022), and are exempt from local sales and use tax.
The casual excise tax no longer applies to motor vehicles and motorcycles — only to aircraft, boats, and boat motors — while the IMF is paid at registration.
Key effective dates: the IMF began July 1, 2017; the extension of the IMF to first titling and to lessees took effect May 10, 2021; the boat-motor maximum tax took effect July 1, 2022; and the motor-vehicle chart entries took effect April 26, 2023.

What this means for you

Dealers and other retailers

Use the letter's three charts to decide, for each transaction, (1) whether the IMF or the sales and use tax applies, (2) whether you remit to the DMV or to the Department, and (3) the correct rate and cap. Whether you are a licensed DMV dealer changes who collects and where the money goes.

Buyers of boat, farm, and utility trailers

If your privately owned trailer is not used for hire, expect sales or use tax rather than the IMF — a change from the older personal-use/business-use framing. Keep documentation if you claim the farm-use exemption.

Nonresidents and people relocating to South Carolina

Special rules apply to nonresident purchases (often the lesser of your home state's tax or South Carolina's, capped at $500) and to vehicles previously registered elsewhere (a flat $250 IMF). Active-duty military members and their families have additional exemptions described in the charts.

Common questions

Q: What is the Infrastructure Maintenance Fee?
A: A fee of 5% of the price or fair market value, capped at $500, paid to the SC DMV on items that must be titled or registered — imposed instead of sales and use tax.

Q: When does sales tax apply instead of the IMF?
A: When the item does not have to be registered or titled with the DMV (for example, a privately owned utility trailer not used for hire). The sales tax is remitted to the Department.

Q: How are boat, farm, and utility trailers treated now?
A: If they belong to a "person" and are not used to transport persons or property for consideration, they are subject to state and local sales or use tax rather than the IMF.

Q: What does someone moving to South Carolina pay?
A: If the vehicle was first registered out of state by the same owner, the IMF is a flat $250 on first South Carolina registration.

Q: Does the casual excise tax still apply to cars?
A: No. It now applies only to aircraft, boats, and boat motors; motor vehicles and motorcycles instead pay the IMF at registration.

Citations and references

Authority and statutes:

S.C. Code Ann. § 56-3-627 (Supp. 2023) — Infrastructure Maintenance Fee
S.C. Code Ann. § 56-1-10 (Supp. 2023) — definition of "person"
S.C. Code Ann. § 56-3-20 (Supp. 2023) — definition of "trailer"
S.C. Code Ann. § 12-36-2110(A) — maximum sales and use tax; casual excise tax
S.C. Code Ann. § 12-36-2120(83) — exemption for items subject to the IMF
S.C. Code Ann. § 12-36-2120(16) — farm trailer exemption
S.C. Code Ann. § 12-36-930 — sales tax on motor vehicles sold to nonresidents
S.C. Code Ann. § 12-36-2120(36) — out-of-state delivery exemption
S.C. Code Ann. § 12-4-320 (2014) — Department's authority to issue advisory opinions
Act No. 40 of 2017 (South Carolina Infrastructure and Economic Development Reform Act); SC Revenue Procedure #09-3
Reflects SC Revenue Ruling #25-2 and SC Revenue Ruling #23-3; supersedes SC Information Letter #22-17

Source

Landing page: https://dor.sc.gov/advisory-opinion-search
Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL25-5.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 #25-5

SUBJECT:

South Carolina Infrastructure and Economic Development Reform Act

EFFECTIVE DATE: May 10, 2021, for IMF Titling and Lessee Issues; July 1, 2022, for Sales
and Use Tax and Casual Excise Tax Issues Involving Boat Motors; April
26, 2023, for Motor Vehicles; and July 1, 2017, for All Other Issues
Except as Noted for Mopeds
SUPERSEDES:

SC Information Letter #22-17 and all previous advisory opinions and any
oral directives in conflict herewith.

REFERENCE:

S.C. Code Ann. Section 56-1-10 (Supp. 2023)
S.C. Code Ann. Section 56-3-20 (Supp. 2023)
S.C. Code Ann. Section 56-3-130 (Supp. 2023)
S.C. Code Ann. Section 56-3-627 (Supp. 2023)
Chapter 36 of Title 12 (Supp. 2023)

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.

PURPOSE
The purpose of this Information Letter is to update South Carolina Department of Revenue’s
(SCDOR’s) guidance provided in S.C. Information Letter #22-17 concerning boat trailers under
2,500 pounds, farm trailers, and other utility trailers to reflect the policy revisions in S.C. Revenue
Ruling #25-2. 1 Specifically, the following trailers, if they belong to a “person”, as defined in
Previously, SCDOR advised the following regarding the sale of “boat trailers,” “farm trailers,” and “utility
trailers”: 1) such trailers purchased for “Personal Use” were subject to sales/use tax when purchased from a licensed
retailer, and 2) such trailers purchased for “Business Use” are subject to the IMF and exempt from sales/use tax per
Code § 12-36-2120(83).
1

Section 56-1-10(22) of the South Carolina Code, and are not used to transport persons or property
for a consideration are subject to state and local sales or use tax, rather than the Infrastructure
Maintenance Fee (“IMF”):
•
•
•

boat trailers under twenty-five hundred pounds;
trailers, as defined in Code Section 56-3-20(13), used substantially in the planting,
cultivating, or harvesting of farm crops for sale in their original state of production;
and
trailers, as defined in Code Section 56-3-20(13) that are not recreational vehicles,
fire safety education trailers, horse trailers, or boat trailers.

OVERVIEW OF NEW INFRASTRUCTURE MAINTENANCE FEE
In 2017, the General Assembly 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. 2 As part of its effort to
improve the state’s transportation infrastructure network, the General Assembly imposed the IMF,
which became effective July 1, 2017.
In 2021, the General Assembly amended Code Section 56-3-627, effective May 10, 2021, to also
impose the IMF on the first titling of each vehicle, trailer, semitrailer, or other item required to be
registered pursuant to Chapter 3 of Title 56. Previously, the IMF only applied to the first
registration of a vehicle, trailer, semitrailer, or other item with South Carolina Department of
Motor Vehicles (“SCDMV”). The General Assembly also amended IMF statute to apply, in
addition to an owner, to a lessee first titling or registering a vehicle, trailer, semitrailer, or other
item with SCDMV.
In 2022, the General Assembly amended Code Section 12-36-2110(A), effective July 1, 2022,
subjecting watercraft motors (e.g., boat motors) to a maximum sales and use tax and maximum
casual excise tax. Sales of watercraft motors are subject to the sales and use tax and the casual
excise tax at a rate of 5%, but no more than $500. With this amendment, sales of watercraft motors
are exempt from all local sales and use taxes administered and collected by SCDOR.
Registration in South Carolina upon Purchase or Lease: The owner or lessee of each vehicle,
trailer, semitrailer, or other item required to be registered pursuant to Chapter 3 of Title 56 must
pay the IMF upon first titling or registering the vehicle, trailer, semitrailer, or other item with
SCDMV. The IMF 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 a SCDMV licensed dealer.
Sales subject to the IMF are exempt from the state and local sales and use taxes.
If a dealer has a South Carolina retail license or offers to license, title, or register the item, then the
dealer must collect the IMF and remit it to SCDMV. Generally, based on information from
2

See Act No. 40 of 2017.

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, a person
licensed with SCDMV in the business of selling mopeds.
Registration in South Carolina after First Registration in Another State: 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, payment of the IMF is required. Under these circumstances the IMF rate is $250.
CHARTS FOR DEALERS, OTHER RETAILERS, AND NONRETAILERS
SCDOR, in coordination with SCDMV, is updating the charts issued in S.C. Information Letter

22-17 to assist dealers and other retailers in determining: (1) whether the sale is subject to the

IMF or the sales and use tax; (2) whether to remit the IMF to SCDMV or remit the sales and use
tax on sales to nonresidents to SCDMV or SCDOR; and (3) the rate of the IMF or the sales and
use tax.
Attached are the three updated 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 or Titled 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, Titled, 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 SCDOR 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).
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 IMF 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 or titled with SCDMV, the IMF
applies and is remitted to SCDMV.

•

If the vehicle is of a type that is not required to be registered or titled with SCDMV, then
the sales tax would apply and is remitted to SCDOR (e.g., a utility trailer that belongs to a
person and is not used to transport persons or property for consideration).

Sales to Nonresidents
•

Vehicles that would be required to be registered in South Carolina and therefore, subject
to the maximum tax provisions in Code Section 12-36-2110(A)(1) are subject to sales tax
when they are sold to a nonresident who must register the vehicle in his home state. If the
vehicle is sold by a SCDMV licensed dealer, the nonresident must remit the sales tax to
SCDMV. If the vehicle is sold by a person who is not a licensed SCDMV dealer, the sales
tax is remitted to SCDOR.
However, based on Code Sections 12-36-930 and 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 his 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 SCDOR.

Casual Excise Tax
•

The casual excise tax no longer applies to motor vehicles and motorcycles. The casual
excise tax only applies to aircraft, boats, and boat motors. The IMF, however, is paid at the
time of registration.

The attached charts provide the applicable rate for the IMF 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.
ADDITIONAL INFORMATION
If you have questions regarding the IMF remitted to SCDMV, or sales taxes remitted by licensed
SCDMV dealers to SCDMV on sales to nonresidents, please contact SCDMV at
[email protected].
If you have questions regarding all other sales and use tax matters, please contact SCDOR at (803)
898-5000 or [email protected].

ITEMS SUBJECT TO SALES/USE TAX
OR INFRASTRUCTURE MAINTENANCE FEE (IMF)
EFFECTIVE MAY 10, 2021, FOR IMF Titling/Lessee Issues
Effective July 1, 2022, for Boat Motor Sales Tax Issues
Effective April 26, 2023, for Motor Vehicles, Motorcycles, Recreational Vehicles,
and Self-Propelled Light Construction Equipment
Effective July 1, 2017, for All Other Issues, Except as Noted for Mopeds

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 TITLED OR
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))

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

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

Moped
(Purchased on or after
November 19, 2018 –
See 2017 S.C. Acts 89)
(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)

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

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
Pole Trailer

Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Not Privately Owned and For Hire

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)
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 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

Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Privately Owned and
Not For Hire

Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Not Privately Owned and
Not For Hire

Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
–
Privately Owned and
For Hire

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

Sales Tax Remitted by Retailer to DOR
6% + Local (Unless Exempt Under
S.C. Code §12-36-2120(16))

No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83) or
S.C. Code § 12-36-2120(16)
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)

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, Casual Excise Tax, or
IMF Due on Transaction

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

Horse Trailer
(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)

Dirt Bikes (Off Road)
(Maximum Sales Tax Item)

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

Sales Tax Remitted by Retailer to DOR
5% up to $500
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83) or
S.C. Code § 12-36-2120(16)
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, Casual Excise Tax, or IMF
Due on Transaction
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

Boat or Boat with Motor
Permanently Attached
At Time of Sales
(Maximum Sales Tax Item)

No Casual Excise Tax Due
(Casual Excise Tax Only Applies to
Airplanes; and Airplanes are Not Registered,
Titled, or Licensed by South Carolina)
No Sales Tax Collected by Seller

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

CHART 1:

ITEM PURCHASED

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 Motor
(Not permanently attached
to boat at time of sale)
(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

Golf Carts, ATVs, and Go-Carts
(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

Professional Race Cars Towed
to or from a Race Track
(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

Single Family Modular Home
(Ch. 43, Title 23)

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 Intern)

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

Manufactured Home
(Maximum Sales Tax Item)

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)

CHART 1 GENERAL INFORMATION
Maximum Tax Items (5% up to $500) under S.C. Code § 12-36-2110(A)s
• Motor Vehicle 1
• 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
• Livestock trailer
• Fire Safety Education Trailer
• Self-Propelled Light
Construction equipment with
compatible attachments limited
to a maximum of 160 net engine
horsepower

• Boat; Boat Motor
• 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 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).
Purchases by Nonresidents for First Registration or Use in South Carolina
Chart 1 concerns motor vehicles and other items purchased and registered in South Carolina by South Carolina residents. However, Chart 1 also applies to motor
vehicles and other items purchased by nonresidents first registered in South Carolina with the South Carolina Department of Motor Vehicles (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 U.S. 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 Chart 2 and 3 for information on the taxes and fees imposed on active duty military members, if any.

“Motor vehicle” includes all-terrain vehicles (ATVs), utility task vehicles (UTVs), golf carts, and legend race cars. See S.C. Revenue Ruling #23-3.

ITEMS SUBJECT TO SALES/USE TAX
OR INFRASTRUCTURE MAINTENANCE FEE (IMF)
-Effective July 1, 2017CHART 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 TITLED OR
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 Dealer to DOR

Lesser of sales tax imposed in the
Lesser of sales tax imposed in the
Purchaser’s state of residence or 5% sales tax, Purchaser’s state of residence or 5% sales tax, but no
but no more than $500
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 Dealer to DOR

Lesser of sales tax imposed in the
Lesser of sales tax imposed in the
Purchaser’s state of residence or 5% sales tax, Purchaser’s state of residence or 5% sales tax, but no
more than $500
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 Dealer to DOR

See Note 1 for exceptions

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an individual)

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

ITEM PURCHASED
Dirt Bikes (Off Road)
(Maximum Sales Tax Item)
(Not of a Type Subject to
Registration under
S.C. Code § 56-3-627)

Moped
(Purchased on or after
November 19, 2018 –
See 2017 Act No. 89)
(Maximum Sales Tax Item)

PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

Sales Tax Remitted by Dealer to DOR
5% up to $500

Sales Tax Remitted by Dealer to DMV

Sales Tax Remitted by Dealer 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

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

Sales Tax Remitted by Dealer to DOR

Recreational Vehicles
Pulled by a Motor Vehicle
(Tent Campers, Travel Trailers,
Park Models, Park Trailers,
and Fifth Wheels)
(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

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

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

See Note 1 for exceptions
Sales Tax Remitted by Retailer to DOR

See Notes 1 and 2 for exemptions

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

ITEM PURCHASED

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 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

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

See Notes 1 and 2 for exemptions

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 exemptions
Trailer or Semitrailer of a Type Not
Required to be Licensed and
Registered
(Maximum Sales Tax Item)
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
5% up to $500

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Sales Tax Remitted by Retailer to DOR
6% + Local

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

ITEM PURCHASED

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

Boat Trailers under 2,500 pounds

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 exemptions
Sales Tax Remitted by Retailer to DOR

Utility Trailers

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 exemptions
Sales Tax Remitted by Retailer to DOR

Farm Trailers

Lesser of sales tax imposed in the
purchaser’s state of residence or
6% + Local
See Notes 1 and 2 for exemptions

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

ITEM PURCHASED
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)
Nonresident Military and Spouse
Motor Vehicles (including trucks),
Motorcycles, Trailers and Semitrailers
Purchased by a Non-Resident
Member of the Military (including
Spouse) Located in South Carolina by
Reason of Orders of the US Armed
Forces
(e.g., car, motor home,
recreational trailer, truck,
minivan, SUV, motorcycle)
(Personal Use Only)

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
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

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

No IMF or Sales Tax Remitted on Transaction if the license, fee, or excise is paid by the
servicemember in the servicemember’s state of
domicile or residence.
Exempt Under
Servicemember Civil Relief Act
See §§ 3911 (Definitions), 4001 (Exemption
for Personal Property), and 49 U.S. Code §
30102 (Definition of Motor Vehicle)

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 IMF due on Transaction if
The license, fee, or
Excise is paid by the
Servicemember in the
Servicemember’s State of
Domicile or residence.
No Sales Tax or IMF Due on
Transaction

Aircraft
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

No Casual Excise Tax Due
(Casual Excise Tax
Only Applies to
Airplanes, and Airplanes
are Not Registered,
Titled, or Licensed by
South Carolina)

CHART 2:

ITEM PURCHASED

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF 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
(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

Boat Motor
(Not permanently attached
to boat 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
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

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
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)

Golf Carts, ATVs, and Go Carts
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

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 Items)

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

(See General Information and Notes for Chart 2 on the Following Pages)

CHART 2 GENERAL INFORMATION
Maximum Tax Items (5% up to $500) under S.C. Code § 12-36-2110(A)
• Motor Vehicle 2
• 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
• Livestock trailer
• Fire Safety Education Trailer
• Self-Propelled Light
Construction equipment with
compatible attachments limited
to a maximum of 160 net engine
horsepower

• Boat; Boat Motor
• 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
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 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.
Information on Surrounding States
Certain surrounding states offer credit for any sales tax paid in South Carolina. To further assist, a list of the surrounding states’ revenue and taxation departments
are listed below:

“Motor vehicle” includes all-terrain vehicles (ATVs), utility task vehicles (UTVs), golf carts, and legend race cars. See S.C. Revenue Ruling #23-3.

State
Alabama
Florida
Georgia
North Carolina
Tennessee
Virginia

Website
https://revenue.alabama.gov
https://floridarevenue.com
https://dor.georgia.gov
https://www.ncdor.gov
https://www.tn.gov/revenue.html
https://www.tax.virginia.gov/

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 U.S. 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
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 active duty military members, if any.
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.
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 U.S. 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).

CHART 3:

Item Previously Registered
Outside of South Carolina

MOTOR VEHICLES AND OTHER ITEMS 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

IMF Remitted by Owner to DMV
$250

Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Previously Registered Out-of-State
by the Owner and Subsequently
Registered in SC for the first time by the
Same Owner –

IMF Remitted by Owner to DMV
$250

Not Privately Owned and
For Hire
Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Previously Registered Out-of-State
by the Owner and Subsequently
Registered in SC for the first time by the
Same Owner –

No IMF Due on Registration in South Carolina
Exempt Under S.C. Code § 56-3-627(D)(1)

Privately Owned and
Not For Hire
Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Previously Registered Out-of-State
by the Owner and Subsequently
Registered in SC for the first time by the
Same Owner –

IMF Remitted by Owner to DMV
$250

Not Privately Owned and
Not For Hire

CHART 3:

Item Previously Registered
Outside of South Carolina
Boat Trailers under 2,500 pounds,
Farm Trailers, and Utility Trailers
Previously Registered Out-of-State
by the Owner and Subsequently
Registered in
SC for the first time by the
Same Owner –
Not Privately Owned and
Not For Hire
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

MOTOR VEHICLES AND OTHER ITEMS PREVIOUSLY
REGISTERED OUTSIDE OF SOUTH CAROLINA

Infrastructure Maintenance Fee (IMF)

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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