Which items qualified for South Carolina's 2008 Second Amendment sales-tax holiday, and what later happened to the law?

Plain-English summary

SC Revenue Ruling 08-13 explained South Carolina's 2008 two-day sales-tax holiday for qualifying handguns, rifles, and shotguns. The holiday ran from 12:01 a.m. on the Friday after Thanksgiving through midnight Saturday and applied to state and Department-administered local sales and use taxes.

Only the listed firearms qualified. Separately sold ammunition, magazines, barrels, sights, stocks, holsters, safes, cleaning supplies, clothing, and other parts or accessories remained taxable. A part or attachment prepackaged with a qualifying firearm could be included in the exempt single transaction.

The ruling described timing rules for delivery, immediate shipment, Internet and mail-order sales, custom orders, rentals, layaways, rain checks, exchanges, delivery charges, and engraving. The South Carolina Supreme Court later held the underlying legislation unconstitutional, eliminating the purported recurring statutory holiday. The General Assembly then enacted separate temporary holidays for later individual years.

What this means for you

Firearms retailers

For the historical 2008 holiday, retailers could not opt out and collect tax on qualifying transactions. Exempt November sales still had to be reported and deducted on the sales-and-use-tax return as instructed by the ruling.

Purchasers

The exemption depended on the sale occurring during the two-day window. An order paid for and accepted for immediate shipment could qualify even if delivery came later; a rain check issued during the holiday did not protect a later purchase.

Accessory purchases

Separately purchased ammunition, parts, supplies, and accessories did not qualify. Delivery and engraving charges associated with an exempt firearm sale did qualify.

Common questions

Q: Which items were exempt?
A: Qualifying handguns under S.C. Code § 16-23-10(1), rifles, and shotguns.

Q: Was ammunition exempt?
A: No. Ammunition and separately sold parts, attachments, supplies, and accessories were taxable.

Q: Did online and mail-order sales qualify?
A: Yes, when the qualifying sale met the ruling's timing and immediate-shipment rules.

Q: Did business and government purchases qualify?
A: Yes, if the item and transaction otherwise met the holiday requirements.

Q: Is this an ongoing annual holiday?
A: No. The underlying legislation was held unconstitutional in 2009, and this ruling was expressly superseded by guidance for a separate temporary 2009 holiday.

Citations and references

• Former S.C. Code § 12-36-2120 firearm-holiday provision enacted by Act 338 of 2008
• S.C. Code § 16-23-10(1) (handgun definition)
• American Petroleum Institute v. South Carolina Department of Revenue, 677 S.E.2d 16 (S.C. 2009) (underlying legislation held unconstitutional, as explained by RR 09-14)
• SC Revenue Ruling #09-14 (expressly superseding guidance for a separate temporary 2009 holiday)

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR08-13.pdf
• Superseding guidance: SC Revenue Ruling #09-14

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 #08-13

SUBJECT:

Second Amendment Sales Tax Holiday
(Sales and Use Tax)

EFFECTIVE DATE:

Beginning 12:01 a.m. on the Friday after Thanksgiving and
ending at twelve midnight the following Saturday of each year.

SUPERSEDES:

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

REFERENCES:

Act 338, Section 2, of 2008 (Enacted June 25, 2005)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2007)
SC Revenue Procedure #05-2

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public and to Department personnel. It is an advisory opinion
issued to apply principles of tax law to a set of facts or general
category of taxpayers. It is the Department’s position until
superseded or modified by a change in statute, regulation, court
decision, or another Departmental advisory opinion.

LAW:
Code Section 12-36-2120 has been amended to exempt from the sales and use tax:
( ) sales of handguns as defined pursuant to Section 16-23-10(1), rifles,
and shotguns during the forty-eight hours of the Second Amendment
Weekend. For purposes of this item, the 'Second Amendment Weekend'
begins at 12:01 a.m. on the Friday after Thanksgiving and ends at twelve
midnight the following Saturday.

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EXAMPLES OF EXEMPT AND NON-EXEMPT ITEMS
Pursuant to the amendment to Code Section 12-36-2120 cited above, the department
publishes the following list as examples of items it believes to be exempt and non-exempt
during the “Second Amendment Sales Tax Holiday.”
Please note that the items listed below as “Exempt” are the only items listed in the law as
exempt during the “Second Amendment Sales Tax Holiday.”
However, the items listed below as “Non-exempt” are examples and the list is not allinclusive. Any item that is not a handgun (as defined in Code Section 16-23-10(1)), rifle
or shotgun is subject to the tax.
Exempt items include:
handguns as defined pursuant to Code Section 16-23-10(1) 1
rifles
shotguns
Non-exempt items include 2 :
ammunition
archery supplies
black powder
books
carrying cases
cleaning supplies
gun barrels
gun safes
handguns generally recognized or classified as antique, curiosity, or collector's items
handguns that do not fire fixed cartridges
holsters
hunting clothes
knives
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Code Section 16-23-10(1) defines a “handgun” as “any firearm designed to expel a projectile and
designed to be fired from the hand, but shall not include any firearm generally recognized or classified as
an antique, curiosity, or collector's item, or any that does not fire fixed cartridges.”
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Some of the items in this non-exempt list are parts and attachments to handguns, rifles or shotguns (e.g.,
gun barrels, magazines, sights, stocks) and others are not (e.g., ammunition, black powder, carrying cases,
holsters, locks, clothing). Since sales tax is a "transaction tax," and since the law did not exempt parts or
attachments (e.g., gun barrels, magazines, sights, stocks) or supplies and accessories (e.g., ammunition,
black powder, carrying cases, holsters, locks, clothes), then the sale of a part or attachment by itself, or the
sale of a supply or accessory, would not be exempt during the “Second Amendment Sales Tax Holiday.”
However, if a part or attachment to a handgun, rifle or shotgun (e.g., sight) is pre-packaged with a handgun,
rifle or shotgun, then that is one transaction to purchase a handgun, rifle or shotgun and the sale of the prepackaged unit would be exempt, provided the transaction meets all the requirements of the exemption as set
forth in the law.

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lasers
lights
locks
magazines
range gear
reloading supplies
safety vests
sights
sporting clays
stocks
targets
toy handguns
toy rifles
toy shotguns
videos
QUESTIONS AND ANSWERS:
The following answers represent the department's opinion with respect to various issues
concerning the "Second Amendment Sales Tax Holiday:"
(1) When is the "Second Amendment Sales Tax Holiday??”
The two-day “Second Amendment Sales Tax Holiday” is held annually beginning at
12:01 a.m. on the Friday after Thanksgiving and ending on the following Saturday at
midnight.
(2) Must the eligible item being sold be delivered to the customer during the two-day
“Second Amendment Sales Tax Holiday” in order for the exemption to apply?
An item qualifying for the “Second Amendment Sales Tax Holiday” will be exempt if:
(a) the eligible item is both delivered to and paid for by the customer during the
two days of the “Second Amendment Sales Tax Holiday”; or
(b) the eligible item is ordered and paid for by the customer and the order is
accepted by the retailer during the “Second Amendment Sales Tax Holiday” for
immediate shipment or delivery, even if delivery is made after the “Second
Amendment Sales Tax Holiday.” An order is accepted by the retailer when it has
taken an action to fill the order for immediate shipment or delivery.
Actions to fill an order include placing an "in date" stamp on a mail order or
assigning an order number to a telephone order. An order is for immediate
shipment or delivery when delayed shipment or delivery is not requested by the
customer and is for immediate shipment or delivery, notwithstanding that the
shipment or delivery may be delayed because of a backlog of orders or because
stock is currently unavailable to, or on back order by, the retailer.
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(3) Does the “Second Amendment Sales Tax Holiday” apply to sales made by mail order,
Internet or similar retailers?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(4) Does the “Second Amendment Sales Tax Holiday” apply to custom or special orders?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(5) Does the “Second Amendment Sales Tax Holiday” apply to sales made to a trade or
business (e.g., security firm, etc.) or to a government agency (e.g., police department,
sheriff’s office, etc.)?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(6) Does the “Second Amendment Sales Tax Holiday” apply to rentals?
Yes, provided the item rented is one qualifying for the exemption, the rental agreement is
signed during the two days of the “Second Amendment Sales Tax Holiday” whereby the
customer is bound by the rental agreement (creating an obligation to pay the periodic
rental payments), and the rental transaction meets all the requirements discussed in
Question #2.
Note: If the rental agreement is later renewed and this renewal does not occur during a
subsequent “Second Amendment Sales Tax Holiday,” then the renewal is not eligible for
the exemption and all periodic payment under the renewal are subject to the sales and use
tax.
(7) Are delivery charges subject to the tax during the “Second Amendment Sales Tax
Holiday?”
Most delivery charges are included in the tax base for the sales tax and the use tax. If an
item qualifies for the exemption under the “Second Amendment Sales Tax Holiday,” then
all delivery charges associated with that sale are exempt. For example, if a retailer sells a
rifle during the sales tax holiday for $2,000 and also charges $55 to deliver the rifle, then
the entire charge of $2,055 is exempt from the sales or use tax.
(8) Are engraving charges for handguns, rifles, and shotguns sold during the “Second
Amendment Sales Tax Holiday” subject to the tax?

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If an item qualifies for the exemption under the “Second Amendment Sales Tax
Holiday,” then all engraving charges associated with that sale are exempt. For example, if
a retailer sells a rifle during the “Second Amendment Sales Tax Holiday” for $2,000 and
also charges $50 to engrave a name on the stock, then the entire charge of $2,050 is
exempt from the sales or use tax.
(9) How are exchanges of items purchased during the "sales tax holiday" handled when
returned after the “Second Amendment Sales Tax Holiday?”
If a customer purchases an exempt item during the “Second Amendment Sales Tax
Holiday” and later exchanges the item for the same item (different caliber, different
brand, etc.) with no additional payment due as a result of the exchange, then no additional
tax will be due even if the exchange is made after the “Second Amendment Sales Tax
Holiday.”
For example: If the customer purchased a $500 handgun during the “Second
Amendment Sales Tax Holiday” and later exchanges it for another handgun ($500
or less) but one of a different caliber, then no additional tax will be due even if the
exchange is made after the “Second Amendment Sales Tax Holiday.”
However, if the customer returns the item after the “Second Amendment Sales Tax
Holiday” and is allowed a credit for the sales price of the item that can be used to
purchase of a different item, the sales or use tax will apply to the sale of the newly
purchased item.
For example: If the customer purchased a $500 handgun during the “Second
Amendment Sales Tax Holiday” and later returns it after the “Second Amendment
Sales Tax Holiday” and receives a credit for $500 that is used to purchase a rifle,
shotgun or other item, then the sales or use tax will apply to the sale of the newly
purchased rifle, shotgun or other item.
(10) How are exchanges of items purchased before the “Second Amendment Sales Tax
Holiday” handled when returned during the “Second Amendment Sales Tax Holiday?”
If a customer purchases an item before the “Second Amendment Sales Tax Holiday” and
later exchanges the item during the “Second Amendment Sales Tax Holiday” for the
handgun, rifle or shotgun that qualifies for the exemption, no additional tax will be due
since the item received in the exchange is one that qualifies for the exemption.
(11) How will the “Second Amendment Sales Tax Holiday” apply to rain checks?
The issuance of a rain check during the “Second Amendment Sales Tax Holiday” will not
qualify an item for the exemption if the item is actually purchased after the “Second
Amendment Sales Tax Holiday.”

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Items that qualify for the exemption which are purchased during the “Second
Amendment Sales Tax Holiday” using a rain check will be exempt from sales or use tax
regardless of when the rain check was issued.
(12) Does an item placed on lay-away during the “Second Amendment Sales Tax
Holiday” qualify for the exemption?
Yes, provided the item sold is one qualifying for the exemption, the sale occurs during
the two days of the “Second Amendment Sales Tax Holiday, ” the terms of the lay away
agreement create an absolute obligation to pay for the customer, and the sale meets the
requirements discussed in Question #2.
Note: If the terms of the lay away agreement do not create an absolute obligation to pay
for the customer, then the sale is subject to the sales and use tax even if it occurs during
the “Second Amendment Sales Tax Holiday” since the sale has not met the requirements
of the exemption as discussed in Question #2.
(13) Does the “Second Amendment Sales Tax Holiday” apply to local sales and use taxes
collected by the department on behalf of counties that have imposed such local sales and
use taxes?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(14) How should retailers report sales exempt during the “Second Amendment Sales Tax
Holiday?”
With respect to the return filed for November, all sales, whether or not exempt from the
tax, should be reported on Line 1 of the Worksheet on the back of the sales and use tax
return. Sales of items exempt from the tax during the “Second Amendment Sales Tax
Holiday” should be listed as one of the deductions in the space provided on Line 4 of the
Worksheet on the sales and use tax return and listed as “Second Amendment Sales Tax
Holiday Exemption."
(15) Can retailers elect not to participate in the “Second Amendment Sales Tax Holiday”
and collect the sales tax from their customers on eligible items during the two days of the
“Second Amendment Sales Tax Holiday?”
No. Retailers may only "pass on" to their customers sales taxes that are legally due.
The department may revoke any and all licenses issued by the department and held by a
retailer, and impose any applicable penalties, if the retailer passes on sales taxes that are
not legally due.

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(16) Is the sale of an exempt item on a "90 days same as cash" basis exempt from tax if
purchased during the “Second Amendment Sales Tax Holiday?”
Yes, provided the contract obligating the buyer to pay is signed during the “Second
Amendment Sales Tax Holiday” and delivery of the item is made during the “Second
Amendment Sales Tax Holiday” or the retailer accepts the order during the “Second
Amendment Sales Tax Holiday” for immediate shipment, even if delivery is made after
“Second Amendment Sales Tax Holiday.” See Question #2 for what is meant by
"immediate shipment or delivery."
If you have any questions, you may call the Department of Revenue at (803) 898-5788 or
e-mail the Department at [email protected].
Note: The advisory opinion only concerns the application of the “Second
Amendment Sales Tax Holiday exemption for certain handguns, rifles and shotguns
and does not concern the laws and regulations for the sale, delivery or shipment of
such handguns, rifles, or shotguns by retailers. Retailers or other persons with nontax questions concerning federal, state or local laws or regulations regarding the
sale, or method of shipment or delivery, of a handgun, rifle or shotgun should
research such laws or regulations, contact the applicable federal, state or local
authorities or obtain professional advice concerning such non-tax matters.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Ray N. Stevens
Ray N. Stevens, Director
, 2008
November 3
Columbia, South Carolina

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