What South Carolina sales-tax exemptions were available to motion picture companies under RR 05-7?

Plain-English summary

South Carolina Revenue Ruling 05-7 described two historical sales-and-use-tax exemptions for motion picture companies.

The broader incentive applied to a company intending to spend at least $250,000 in South Carolina within a consecutive 12-month period. The company had to apply before filming, estimate expenditures, receive approval and certification, and obtain an exemption certificate. It then could exempt qualifying South Carolina production expenditures from state tax and local sales and use taxes administered by the Department.

A narrower exemption under § 12-36-2120(43) covered supplies, technical equipment, machinery, and electricity used and consumed directly and predominantly in filming or producing a motion picture, even without the broader certification threshold.

The certificate belonged only to the named production company; cast, crew, and independent contractors could not use it for their own purchases. RR 08-12 later expressly superseded this guidance.

What this means for you

Certified productions

Approval before filming, estimated and actual spending, certification, and correct certificate use were central to the broader exemption.

Smaller productions

The narrower production-property exemption could still apply if its direct-and-predominant-use requirements were met.

Vendors and contractors

Confirm the purchaser and certificate holder. A production company's certificate did not extend to a contractor's own purchases.

Common questions

Q: Did the broader exemption cover local taxes?
A: It covered local sales and use taxes administered by the Department, not directly imposed local hospitality or accommodations taxes.

Q: What if the production missed the spending threshold?
A: The ruling made it liable for the taxes that would otherwise have been paid, subject to the stated payment and interest rules.

Q: Is RR 05-7 current?
A: No. RR 08-12 expressly superseded it.

Citations and references

• S.C. Code Ann. §§ 12-62-30 and 12-62-40 — historical certified-production exemption and procedures
• S.C. Code Ann. § 12-36-2120(43) — narrower production supplies and equipment exemption
• SC Revenue Ruling #08-12 — superseding motion-picture guidance

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR05-7.pdf
• Superseding guidance: RR08-12.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC REVENUE RULING #05-7

SUBJECT:

Motion Picture Production Company Exemption
(Sales & Use Tax)

EFFECTIVE DATE:

May 9, 2005

SUPERSEDES:

All previous advisory opinions and any oral directives in conflict
herewith.

REFERENCES:

S. C. Code Ann. Section 12-62-30 (House Bill 3152 of 2005)
S. C. Code Ann. Section 12-62-40 (House Bill 3152 of 2005)
S. C. Code Ann. Section 12-36-2120(43) (2000)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2004)
SC Revenue Procedure #03-1

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public
and to Department personnel. It is a written statement issued to apply
principles of tax law to a specific set of facts or a general category of
taxpayers. A Revenue Ruling does not have the force or effect of law,
and is not binding on the public. It is, however, the Department’s
position and is binding on agency personnel until superseded or
modified by a change in statute, regulation, court decision, or advisory
opinion.

Introduction
The South Carolina Motion Picture Incentive Act (S.C. Code Ann. Section 12-62-10 et seq., as
amended by House Bill 3152 of 2005) provides tax incentives for motion picture production
companies spending monies in South Carolina. One of these incentives is a sales and use tax
exemption in Code Section 12-62-30.
Code Section 12-36-2120(43) also contains a less expansive sales and use tax exemption that is
available to motion picture companies for use in filming or producing motion pictures.
The purpose of this document is to provide the Department’s opinions with respect to some of
the common questions that have arisen concerning these sales and use tax incentives.

1

Law:
The sales and use tax provisions of the South Carolina Motion Picture Incentive Act are found in
Chapter 62 of Title 12 and are quoted below.
Code Section 12-62-30 states:
A motion picture production company that intends to expend in the aggregate two
hundred fifty thousand dollars or more in connection with the filming or production of
one or more motion pictures in the State of South Carolina within a consecutive twelvemonth period, upon making application for, meeting the requirements of, and receiving
written certification of that designation from the department as provided in this chapter,
shall be relieved from the payment of state and local sales and use taxes administered and
collected by the Department of Revenue on funds expended in South Carolina in
connection with the filming or production of a motion picture or pictures. The production
of television coverage of news and athletic events is specifically excluded from the
provisions of this chapter.
Code Section 12-62-40 states:
(A) A motion picture production company that intends to film all or parts of a motion
picture in South Carolina and desires to be relieved from the payment of the state and
local sales and use taxes, administered and collected by the Department of Revenue, as
provided in this chapter shall provide an estimate of total expenditures expected to be
made in South Carolina in connection with the filming or production of the motion
picture. The estimate of expenditures must be filed with the department before the
commencement of filming in South Carolina.
(B) At the time the motion picture production company provides the estimate of
expenditures to the department, it also shall designate a member or representative of the
motion picture production company to work with the department and the Department of
Revenue on reporting of expenditures and other information necessary to take advantage
of the tax relief afforded by this chapter.
(C)(1) An application for the tax relief provided by this chapter must be accepted only
from those motion picture production companies that report anticipated expenditures in
the State in the aggregate equal to or exceeding two hundred fifty thousand dollars in
connection with the filming or production of one or more motion pictures in the State
within a consecutive twelve-month period.
(2) The application must be approved by the secretary [of Commerce].
(3) Once the application is approved by the secretary, the Department of Revenue
shall issue a sales and use tax exemption certificate to the motion picture production
company as evidence of the exemption. The exemption is effective on the date the
application is approved by the secretary.

2

(D) A motion picture production company that is approved and receives a sales and use
tax exemption certificate but fails to expend two hundred fifty thousand dollars within a
consecutive twelve-month period is liable for the sales and use taxes that would have
been paid had the approval not been granted; except, that the motion picture production
company must be given a sixty-day period in which to pay the sales and use taxes without
incurring penalties. The sales and use taxes are considered due as of the date the tangible
personal property was purchased in or brought into South Carolina for use, storage, or
consumption.
(E) Upon completion of the motion picture, the motion picture production company must
return the sales and use tax exemption certificate to the Department of Revenue and
submit a report to the department of the actual expenditures made in South Carolina in
connection with the filming or production of the motion picture.
Code Section 12-62-20 provides definitions for various terms used in the above statutes and
states:
For purposes of this chapter:
(1) ‘Company’ means a corporation, partnership, limited liability company, or other
business entity.
(2) Department' means the South Carolina Department of Commerce.
(3) ‘Motion picture’ means a feature-length film, video, television series, or commercial
made in whole or in part in South Carolina, and intended for national theatrical or
television viewing or as a television pilot produced by a motion picture production
company. The term 'motion picture' does not include the production of television
coverage of news and athletic events or a production produced by a motion picture
production company if records, as required by 18 U.S.C. 2257, are to be maintained by
that motion picture production company with respect to any performer portrayed in that
single media or multimedia program.
(4) 'Motion picture production company' means a company engaged in the business of
producing motion pictures intended for a national theatrical release or for television
viewing. 'Motion picture production company' does not mean or include a company
owned, affiliated, or controlled, in whole or in part, by a company or person that is in
default on a loan made by the State or a loan guaranteed by the State.

(6) 'Secretary' means the Secretary of the Department of Commerce or his designee.
If a motion picture production company does not meet the requirements of the exemption in
Code Section 12-62-30, it may still be eligible for the sales and use tax exemption in Code
Section 12-36-2120(43). Code Section 12-36-2120(43) exempts from the tax:

3

all supplies, technical equipment, machinery, and electricity sold to motion picture
companies for use in filming or producing motion pictures. For the purposes of this item,
“motion picture” means any audiovisual work with a series of related images either on
film, tape, or other embodiment, where the images shown in succession impart an
impression of motion together with accompanying sound, if any, which is produced,
adapted, or altered for exploitation as entertainment, advertising, promotional, industrial,
or educational media; and a “motion picture company” means a company generally
engaged in the business of filming or producing motion pictures.
It is also important to note two other aspects of the sales and use tax law:

1. The South Carolina sales and use tax applies to rentals, leases and licenses to use as
   well as sales and purchases. See the definition of the term “sale” in Code Section 1236-100.
2. The South Carolina sales and use tax law defines “tangible personal property” in
   Code Section 12-36-60 to mean personal property that may be seen, weighed,
   measured, felt, touched, or is in any manner perceptible to the senses. Also included
   in this definition are certain services and intangibles subject to the tax under Code
   Sections 12-36-910(B), 12-36-920, 12-36-1310(B), and 12-36-2645. The services and
   intangibles included in the definition of “tangible personal property” and subject to
   the tax under these sections include:
   Communication services, such as
   Answering services
   Cable and satellite programming televisions services
   Database access transmission services (On-line information services)
   E-mail services
   Fax transmission services
   Paging services
   Prepaid wireless calling arrangements
   Teleconferencing services
   Telephone services, including cell phone service
   Additional guest charges at places furnishing sleeping accommodations, such as
   Amenities
   Entertainment
   In-room movies
   Laundering and dry cleaning services
   Rental of meeting rooms
   Room Service
   Special items in promotional tourist packages
   Telephone charges
   Other Guest Services
   4

Electricity
Laundering, dry cleaning, dyeing or pressing services
Sleeping/lodging accommodations/services (7% state rate)
900/976 telephone services (10% state rate)
Questions and Answers - Sales and Use Tax Exemption
Since the sales and use tax applies to sales, purchases, rentals, leases, licenses to use and
other agreements in which title or possession of tangible personal property is transferred
for a consideration, the use of the terms “sale” or “purchase” in this document includes
rentals, leases, licenses to use, and other such agreements.

1. Q. What is the sales and use tax incentive available to a motion picture production company
   under Code Section 12-62-30?
   A. Code Section 12-62-30 exempts sales to, or purchases by, a qualifying motion picture
   production company from sales and use taxes on purchases expended in South Carolina
   in connection with the filming or production of motion pictures in South Carolina. See
   Questions #2, #12, and #13 for more information.
2. Q. Does the exemption apply to both state sales and use taxes and local sales and use taxes?
   A. This exemption applies to the following taxes:
3. The state sales and use tax (i.e., 5% sales and use tax imposed under Code Sections
   12-36-910, 12-36-1310, and 12-36-1320; 7% sales tax on accommodations imposed
   under Code Section 12-36-920; 5% rental surcharge imposed under Code Section 5631-50; and 10% sales and use tax on 900/976 telephone numbers imposed under Code
   Section 12-36-2645), and
4. Any local sales and use tax (e.g., local option tax, capital projects tax, transportation
   tax, various school district taxes, etc.) that is administered and collected by the
   Department of Revenue on behalf of a local jurisdiction.
   Taxes this exemption does not apply to include:
5. any local sales tax administered and collected directly by a local government
   jurisdiction (i.e, local hospitality tax and local accommodations tax),
6. the 1% drycleaning surcharge imposed under Code Section 44-56-430 since it is not a
   sales tax, and
7. the solid waste excise taxes imposed on motor oils under Code Section 44-96160(W), tires under Code Section 44-96-170(N), lead-acid batteries under Code
   Section 44-96-180(F), and white goods (refrigerators, ranges, etc.) under Code
   Section 44-96-200(E). For purposes of this tax, the definitions for motor oil, tires,
   lead-acid batteries and white goods can be found in Code Section 44-96-40.
   5

Note: The Department of Revenue publishes a chart with the various types of local
sales and use taxes collected by the Department of Revenue and the exemptions
allowed under each tax. As of the date of this document, SC Information Letter #0515 contains the most recently published information; updated information will be
published on the Department of Revenue’s website
http://www.sctax.org/Tax+Policy/Policy/salesdx.htm as warranted.

3. Q. What requirements must be met to qualify as a motion picture production company
   eligible for the sales and use tax exemption in Code Section 12-62-30?
   A. A motion picture production company as defined in Code Section 12-62-20(4) (See
   Question #4) qualifies for the exemption in Code Section 12-62-30 if the company:
4. Intends to spend $250,000 or more in South Carolina in connection with the filming
   or production of all or part of one or more motion pictures as defined in Code Section
   12-62-20(3) (See Question #5) in South Carolina within a consecutive 12 month
   period;
5. Submits an application to the South Carolina Department of Commerce;
6. Files an estimate of expenditures with the South Carolina Department of Commerce
   before the commencement of filming in South Carolina;
7. Designates (at the same time the estimate of expenditures is filed) a member or
   representative to work with the South Carolina Department of Commerce and the
   Department of Revenue on reporting of expenditures and other information necessary
   to take advantage of the exemption;
8. Receives written certification as a qualifying company from the South Carolina
   Department of Commerce. Code Section 12-62-30; and,
9. Upon approval of the Secretary of the South Carolina Department of Commerce,
   receives a sales and use tax exemption certificate (Form ST-433) from the South
   Carolina Department of Revenue. See Question #10. The exemption is effective on
   the date the application is approved by the Secretary of the South Carolina
   Department of Commerce. Code Section 12-62-40(C)(3).
   Note: Upon completion of the motion picture, the motion picture production company
   must return the sales and use tax exemption certificate to the Department of Revenue and
   must submit a report to the South Carolina Department of Commerce of the actual
   expenditures made in South Carolina in connection with the filming or production of the
   motion picture. Code Section 12-62-40(E).
10. Q. What is a “motion picture production company”?
    A. A “motion picture production company” is a company engaged in the business of
    producing motion pictures intended for a national theatrical release or for television
    6

viewing. It does not include a company owned, affiliated, or controlled, in whole or in
part, by a company or person that is in default on a loan made by the State or a loan
guaranteed by the State. Code Section 12-62-20(4).

5. Q. What is a “motion picture”?
   A. A “motion picture” is a feature-length film, video, television series, or commercial made
   in whole or in part in South Carolina, and intended for national theatrical or television
   viewing or as a television pilot produced by a motion picture production company. It
   does not include the production of television coverage of news and athletic events or a
   production produced by a motion picture production company if records, as required by
   18 U.S.C. 2257, are to be maintained by that motion picture production company with
   respect to any performer portrayed in that single media or multimedia program. Code
   Section 12-62-20(3).
6. Q. What information must the company provide to the South Carolina Department of
   Commerce to request approval for the exemption?
   A. As of the date of this document, the South Carolina Department of Commerce has
   informed the Department of Revenue that the following information must be provided to
   the South Carolina Department of Commerce to obtain approval for this exemption:
7. Submit a “South Carolina Motion Picture Incentives Application” for approval by the
   Secretary of the South Carolina Department of Commerce. Code Section 12-6240(C).
8. Provide an estimate of total expenditures expected to be made in South Carolina in
   connection with the filming or production of the motion picture with the South
   Carolina Department of Commerce before beginning filming in South Carolina. Code
   Section 12-62-40(A).
9. Designate a member or representative to work with the South Carolina Department of
   Commerce and South Carolina Department of Revenue on reporting of expenditures
   and other necessary information. Code Section 12-62-40(B).
10. Other information required by the South Carolina Department of Commerce.
11. Q. How do I contact the South Carolina Department of Commerce for additional information
    or an application form?
    A. Contact the SC Film Commission, which is a part of the South Carolina Department of
    Commerce, by phoning 803-737-0490. Their mailing address is:
    South Carolina Department of Commerce
    1201 Main Street, Suite 1600
    Columbia, SC 29201

7

8. Q. What expenditures meet the $250,000 requirement?
A. Expenditures that qualify toward the $250,000 requirement include:

1. Purchases of services or intangibles in South Carolina
2. Purchases or rentals of tangible personal property in South Carolina
3. Purchases or rentals of real property located in South Carolina.
4. Q. What if the minimum expenditure requirement is not met?
   A. If a company does not spend the required $250,000 in the 12 month period, then it is
   liable for sales and use taxes that would have been paid had the approval not been granted
   by the Secretary of the South Carolina Department of Commerce. The company is given
   a 60 day period to pay the taxes without incurring penalties. However, the motion picture
   production company would be liable for interest due on such taxes as imposed under
   Code Section 12-54-25. The sales and use taxes are considered due as of the date the
   tangible personal property was purchased in or brought into South Carolina for use,
   storage, or consumption. Code Section 12-62-40(D).
   10.

Q. How are purchases made tax free using the exemption certificate by a qualified motion
picture production company?
A. Upon approval of the Secretary of the South Carolina Department of Commerce, the
Department of Revenue will issue the motion picture production company a Form ST433, the sales and use tax exemption certificate. The exemption is effective on the date
the application is approved by the Secretary of the South Carolina Department of
Commerce. Code Section 12-62-40(C)(3).
A copy of Form ST-433 is given to the retailer by the motion picture production company
at the time of purchase.
The retailer may maintain a copy of the certificate on file; therefore, it is not necessary to
provide a copy each time a purchase is made from the same retailer. By maintaining a
copy on file, the retailer is able to verify with each sale that the sale is being made to a
motion picture production company that meets the requirements of the exemption.
Note: The exemption certificate (Form ST-433) issued to a motion picture production
company will have an expiration date. Sales to, or purchases by, a motion picture
production company after this date are not exempt. However, if filming and production is
expected to extend beyond the original expiration date, a revised exemption certificate
with a new expiration date can be issued by contacting the Department of Revenue’s
License and Registration Section at (803) 898-5391.

8

11.

Q. Who can use the exemption certificate?
The exemption certificate may only be used by the motion picture production company in
whose name the exemption certificate has been issued since the exemption only applies
to sales to, or purchases by, the motion picture production company.
Examples of persons who are not authorized to use the exemption certificate include:

1. Cast and crew purchasing items for their personal use.
2. Subcontractors or others providing services to the motion picture production
   company.

12.

Q. What purchases may be made tax free using Form ST-433?
A. The purchase of tangible personal property, or any service that subject to the sales and
use tax, is exempt from all state and local sales and use tax that are administered and
collected by the Department of Revenue if purchased by a motion picture production
company meeting the requirements of the incentive and used in connection with the
filming or production of a motion picture in South Carolina. The exemption applies to
such purchases made in South Carolina and purchases made in another state for first use
in South Carolina. For examples of exempt purchases, see Question #13.

13.

Q. What are examples of purchases that qualify for the exemption under Code Section 1262-30?
A. The following provides examples of exempt purchases, provided such purchases are used
in connection with the filming or production of a motion picture, purchased by the motion
picture production company, and all other requirements of the statute are met.
Examples of exempt tangible personal property 1 include:
Aircraft
Animals
Automobiles and other vehicles 2
Cameras and camera parts
Catering
Cleaning supplies

1

As stated in question #11, the exemption only applies to purchases by the motion picture production company. For
example, the purchase of hairstyling supplies by a motion picture production company are exempt, but the purchase
of such supplies by an independently owned hairstyling service company that has been hired by a motion picture
production company to provide hairstyling services are subject to the tax. See footnote #4.
2
The rental for periods of thirty-one days or less of private passenger vehicles, trucks under 26,001 pounds gross
vehicle weight (for non-business purposes), and trailers with a gross weight of not more than 6,000 pounds are
subject to state and local sales and use taxes and a 5% rental surcharge. By statute, the 5% rental surcharge is a sales
tax. Therefore, motion picture production companies meeting the requirements of the incentive in Code Sections 1262-30 and 12-62-40 are also exempt from the 5% rental surcharge.

9

Cleanup equipment
Computer equipment
Construction and hardware materials
Copies
Copy machines
Filming supplies (e.g., film stock, flats (panels of scenery), sandbags, etc.)
Food
Gasoline and other fuels (however, motor fuel taxes may apply) 3
Generators/grip and lighting equipment
Hairstyle supplies
Hand tools
Make-up
Office supplies and equipment
Portable dressing rooms and offices
Portable toilets
Production supplies (e.g., editing supplies)
Props (e.g., vehicles, furniture, books, paintings, clothing, shrubbery)
Technical equipment and machinery (e.g., boom, cables, cranes, dolly, editing
equipment, grip truck, matte, tape¸ teleprompter)
Telephones
Vehicles (e.g., props, dressing room vehicles, camera cars, equipment vehicles)
Walkie talkies
Wardrobe
Examples of exempt services and charges 4 include:
Communication services, such as
Answering services
Cable and satellite programming televisions services
Database access transmission services (On-line information services)
E-mail services
Fax transmission services
Paging services
Prepaid wireless calling arrangements
Teleconferencing services
3

As a general rule, gasoline and undyed diesel fuel are subject to the $0.16 a gallon motor fuel tax and are exempt
from sales and use taxes and dyed diesel fuel and dyed kerosene are subject to sales and use taxes (unless otherwise
exempt under the law) and exempt from the $0.16 a gallon motor fuel tax. As such, the exemption certificate (Form
ST-433) issued to the motion picture production company does not need to be presented upon the purchase of
gasoline and undyed diesel fuel, but should be presented to the retailer to purchase dyed diesel fuel and dyed
kerosene exempt from the sales and use tax. The statute does not provide an exemption for the motor fuel tax for
motion picture production companies.

4

The services and charges listed in this category are normally subject to the tax under Code Sections 12-36-910(B),
12-36-920, 12-36-1310(B), and 12-36-2645, but are exempt when purchased by a motion picture production
company meeting the requirements of the South Carolina Motion Picture Incentive Act for use in connection with
the filming or production of a motion picture.

10

Telephone services, including cell phone service
Additional guest charges at places furnishing sleeping accommodations, such as
Amenities
Entertainment
In-room movies
Laundering and dry cleaning services
Rental of meeting rooms
Room Service
Special items in promotional tourist packages
Telephone charges
Other Guest Services
Electricity
Laundering, dry cleaning, dyeing or pressing services 5
Sleeping/lodging accommodations/services
900/976 telephone services
Note: For more detailed information concerning the taxation of additional guest charges
at places furnishing sleeping accommodations, see SC Regulation 117-307.1. For more
detailed information concerning the taxation of certain communication services, see SC
Revenue Ruling #04-15.
14.

Q. What are examples of other purchases that South Carolina does not tax under its sales and
use tax laws?
The following are examples of professional and other personal services, intangibles, and
real property transactions upon which the South Carolina sales and use tax is not
imposed.
Examples of nontaxable services, nontaxable intangibles, and nontaxable real property
transactions 6 , include:
Services
Accounting services

5

Certain drycleaning facilities are participating in the Drycleaning Facility Restoration Trust Fund and are subject to
a 1% drycleaning surcharge. While this surcharge is administered and collected in the same manner as the state sales
and use tax, it is not a sales tax. As such, drycleaning services purchased by a motion picture production company
are not exempt from the 1% drycleaning surcharge.
6
These are examples of professional and other personal services, intangibles, and real property transactions upon
which the South Carolina sales and use tax is not imposed. Since the film industry operates in many states and must
deal with varying sales and use tax laws, this list merely provides examples of services, intangibles, and real
property transactions the charges for which are not taxable in South Carolina. However, it is important to note that
purchases by persons providing these services to a motion picture production company or any other person are
subject to the tax. For example, charges by a janitorial service company to a motion picture production company or
any other person are not subject to the tax; however, the sale to, or purchase by, the janitorial service company of the
supplies (mops, floor cleaners, trash bags, etc.) it uses in providing its service are subject to the sales and use tax.

11

Airline and aircraft charter services
Casting services
Chauffeured limousine services
Clerical services
Construction services
Filming and production services provided by the director, the actors, the crew,
writers, editors, choreographers, stunt persons, dialog coaches, musicians, technical
advisors, designers, hairstylists, makeup artists, wardrobe persons, and similar
persons providing services
Garbage disposal services
Hairstyling/cosmetic services
Janitorial services
Legal services
Meteorological services
Musical services
Payroll services
Research services
Scouting services
Security services
Taxi services
Typing services
Intangibles
Music royalties
Story rights payments
Real Property Transactions
Auditorium rentals
Back lot rentals
Casting facility rentals
Dressing room rentals
Location rentals or fees
Office space rentals
Parking lot rentals
Screening room rentals
Stage rentals
Warehouse rentals

15. Q. If a motion picture company does not meet the requirements of the exemption in Code
    Section 12-62-30, could it be eligible for another sales and use tax exemption in Code
    Section 12-36-2120(43)?
    A. Yes. Code Section 12-36-2120(43) provides a sales and use tax exemption for supplies,
    technical equipment, machinery, and electricity sold to a motion picture company (i.e., a
    company generally engaged in the business of filming or producing motion pictures) for
    use in filming or producing a motion picture.

12

This exemption only applies to supplies, technical equipment, machinery, and electricity
purchased by a motion picture company and used and consumed directly and
predominantly in filming or producing a motion picture. It does not apply to purchases of
property for administrative purposes, such as sales promotions, general office work,
ordering and receiving materials, making travel arrangements, the preparation of shooting
schedules, and preparation of work and payroll records. It does not apply to purchases by
the cast and crew of items for their own personal use or to purchases by subcontractors or
others providing services to the motion picture company.
This exemption applies to the 5% state sales and use tax and to all local sales and use
taxes administered and collected by the Department of Revenue on behalf of a local
jurisdiction. It does not apply to the sales taxes imposed upon communication services,
additional guest charges at places furnishing accommodations, laundering, drycleaning,
dyeing and pressing services, sleeping/lodging accommodations services, and 900/976
telephone services since such services do not constitute supplies. It does not apply to the
5% rental surcharge on the rental of certain vehicles since the rental surcharge is not a
sales tax that is imposed under Chapter 36 of Title 12.

16. Q. How does a motion picture company make purchases under the exemption in Code
    Section 12-36-2120(43)?
    A. The statute does not require a motion picture company to obtain an exemption certificate
    in order to take advantage of the exemption for supplies, technical equipment, machinery,
    and electricity in the exemption in Code Section 12-36-2120(43). However, the
    Department of Revenue recommends that motion picture companies apply for the
    exemption certificate. If a motion picture company is issued a certificate, this will
    simplify for the motion picture company the purchase from suppliers of items exempt
    under Code Section 12-36-2120(43). Otherwise, suppliers may be reluctant to sell items
    tax-free (exempt) to a motion picture company that does not have an exemption
    certificate.
    In order to obtain an exemption certificate for the exemption in Code Section 12-362120(43), the motion picture company files a Form ST-10 (Application for Certificate)
    with the Department of Revenue. If approved by the Department of Revenue, the motion
    picture company will be issued a Form ST-9, the sales and use tax exemption certificate.
    This exemption does not require the filing of an application with, or the approval of, the
    South Carolina Department of Commerce.
    A copy of Form ST-9 is given to the retailer by the motion picture company at the time of
    purchase. The retailer may maintain a copy of the certificate on file; therefore, it is not
    necessary to provide a copy each time a purchase is made from the same retailer. By
    maintaining a copy on file, the retailer is able to verify with each sale that the sale is
    being made to a motion picture company that meets the requirements of the exemption in
    Code Section 12-36-2120(43). (See discussion of this exemption in Question #15.)

13

Note: If a motion picture company uses an ST-9 to purchase items that are not supplies,
technical equipment, machinery, and electricity used and consumed directly and
predominantly in filming or producing a motion picture, then the motion picture company
is liable for the tax due on such purchases as well as any applicable penalties and interest.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Burnet R. Maybank III
Burnet R. Maybank III, Director

, 2005
June 16
Columbia, South Carolina

14