How did South Carolina Revenue Ruling 16-9 apply the one-percentage-point state tax reduction for purchasers age 85 or older?

Plain-English summary

South Carolina Revenue Ruling 16-9 was the Department's 2016 guide to the lower state tax rate for qualifying purchases by individuals age 85 or older. It is now historical: RR 18-10 superseded it effective July 1, 2017, and RR 25-9 later superseded RR 18-10 and prior conflicting guidance.

RR 16-9 described four requirements. The purchaser had to:

1. be age 85 or older;
2. personally purchase the tangible personal property;
3. buy it for the purchaser's own personal use;
4. request the reduction at the time of sale and provide proof of age.

When those conditions were met, the ruling reduced the applicable state tax rate by one percentage point. It did not reduce Department-administered local sales and use taxes or directly administered local hospitality and accommodations taxes.

What qualified under the old guide

The historical ruling applied the reduction to many taxable personal-use purchases, including clothing, furniture, appliances, electronics, vehicle tires and batteries, communication services, laundry and drycleaning, prepared food, specified accommodations charges, and certain vehicle transactions.

It also explained that an existing exemption controlled before the age-based reduction. For example, qualifying prescription medicines, residential electricity, and unprepared food were already exempt from state tax under the provisions discussed; the age-85 rule did not create an additional state reduction on a zero state rate.

What did not qualify

• A gift for another person was not the older purchaser's personal use.
• An item bought for business use did not qualify.
• A family member or caretaker buying an item at the older person's request did not satisfy the personal-purchase requirement under RR 16-9.
• A gift bought by someone else for a recipient age 85 or older did not qualify.
• Local taxes were not reduced.
• A purchaser who failed to request the reduction or show proof of age at the sale could not later claim a refund of the one-percentage-point difference under the ruling.

Phone, mail-order, and Internet purchases could qualify if all four requirements were met.

Retailer responsibilities

RR 16-9 required retailers to post notice of the lower rate at each entrance or cash register. It stated a penalty of up to $100 for each month or part of a month that required signs were not posted and allowed possible retail-license revocation after continued noncompliance following a written warning.

The ruling also said a retailer's failure to post did not create a cause of action for a purchaser who failed to request the reduction and prove age at the time of sale.

Historical rates and later guidance

The detailed rates in RR 16-9 reflected 2016 law. Its examples included a 5% state rate instead of 6% on general taxable purchases, a 6% rate instead of 7% on sleeping accommodations, and special treatment of then-$300 maximum-tax items and casual excise tax.

Those dollar caps and rates changed in later guidance. Use RR 25-9 and current statutes for present transactions.

Common questions

Q: Could the reduction apply to an online purchase?

A: Yes under RR 16-9, if the buyer personally made the purchase for personal use, requested the reduction at sale, and proved age.

Q: Did it reduce local sales tax?

A: No. It reduced specified state tax rates only.

Q: Could someone request a refund later?

A: No under the ruling if the purchaser failed to request the reduction or provide proof of age at the time of sale.

Q: Could a caretaker make the qualifying purchase for the older person?

A: No under RR 16-9's personal-purchase requirement.

Q: Is RR 16-9 current?

A: No. RR 18-10 superseded it, and RR 25-9 later superseded RR 18-10 and prior conflicting guidance.

Citations and references

• S.C. Code Ann. Sections 12-36-2620, 12-36-2630, and 12-36-2640 (age-85 reduction discussed in the ruling)
• S.C. Code Ann. Section 12-36-2120 (specific exemptions)
• S.C. Code Ann. Section 12-36-920 (accommodations and additional guest charges)
• S.C. Code Ann. Section 12-36-2110 (historical maximum-tax items)
• S.C. Code Ann. Section 12-36-1710 (casual excise tax)
• SC Revenue Ruling #18-10 and SC Revenue Ruling #25-9 (later superseding guidance)

Subject

Purchases by Individuals 85 Years of Age and Older

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR16-9.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC REVENUE RULING #16-9

SUBJECT:

Purchases by Individuals 85 Years of Age and Older
(Sales and Use Tax)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

SC Revenue Ruling #08-5

REFERENCES:

Chapter 36 of Title 12 (2014; Supp. 2015)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public. 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
Department advisory opinion.

GENERAL OVERVIEW OF TAXES IMPOSED ON PURCHASES
State Sales and Use Tax. 1 South Carolina imposes a 6% sales tax on the gross proceeds
of sales of every person engaged in the business of selling tangible personal property at
retail. The retailer is liable for the tax. South Carolina imposes a complimentary 6% use
tax on the sales price of tangible personal property purchased at retail for storage, use, or
other consumption in South Carolina, regardless of whether the retailer is engaged in
business in South Carolina. The use tax is the liability of the purchaser.
In addition to applying to the sale or use of tangible personal property (e.g., furniture,
clothing, computers, etc.) the sales and use taxes also apply to certain communication
services, laundry and drycleaning services, and the furnishing of accommodations.

1

Code Sections 12-36-910, 12-36-1110, and 12-36-1310.

1

Sales Tax on Accommodations and Additional Guest Charges. 2 South Carolina
imposes a 7% sales tax on charges for any rooms, lodgings, or sleeping accommodations
for less than 90 days to the same person and a 6% sales tax on “additional guest charges”
added to the guest’s room charge for certain specific amenities or services.
Local Sales and Use Taxes. Local governments have limited authority to levy local taxes
and fees for various purposes. The Department administers and collects certain local sales
and use taxes on behalf of local jurisdictions. The Department provides a chart listing the
current local sales and use taxes collected by the Department and exemptions allowed
under each tax. The most recent information is published in an Information Letter that
can be found on the Department’s website. In addition, some counties and municipalities
administer and collect certain local taxes, such as a local hospitality tax on prepared
meals and food or a local accommodations tax in addition to the state tax. These local
taxes are not discussed in this document.
$300 “Cap”(Maximum Sales or Use Tax). 3 Certain sales or leases of tangible personal
property are subject to a maximum sales or use tax of $300. The $300 sales or use tax
amount (“cap”) applies to specifically authorized items, such as motor vehicles,
recreational vehicles, and boats. The maximum tax does not apply to certain items, such
as golf carts, boat trailers, and all-terrain vehicles. Sales of items subject to the maximum
tax are exempt from local sales and use taxes.
Casual Excise Tax. 4 Motor vehicles, boats, and boat motors purchased from a nonretailer (typically an individual) are subject to a “casual excise tax” (rather than a use tax)
for the issuance of a title or proof of ownership. The casual excise tax rate is 5% 5 (not to
exceed $300) for items that qualify for the maximum tax, such as a motor vehicle, and
6% for items that do not qualify for the maximum tax, such as a boat motor sold alone.
Sales of items subject to the maximum tax are exempt from local sales and use taxes.
Local taxes may apply to sales of items not subject to the maximum tax, such as a boat
motor.
PURPOSE OF ADVISORY OPINION – Reduction in Sales, Use and Casual Excise
Tax Rate for Purchases by Individuals 85 and Older. 6
South Carolina sales and use tax law provides a lower state tax rate for purchases by
individuals 85 years of age and older for their personal use. The lower sales and use tax
rate, sometimes referred to as the “1% exclusion” or “1% reduction” for individuals 85
2

Code Section 12-36-920(A) and (B). Code Section 12-36-1110 increased the state sales and use tax rate
by 1% beginning June 1, 2007, from 5% to 6% for most items. The 1% increase did not apply to the tax on
the rental of accommodations under Code Section 12-36-920(A), but the 1% increase did apply to the sales
tax on additional guest charges under Code Section 12-36-920(B).
3
Code Section 12-36-2110.
4
Code Section 12-36-1710.
5
Code Section 12-36-1110. This statute increased the state sales and use tax rate by 1% beginning June 1,
2007, from 5% to 6% for most items. The 1% increase did not apply to items subject to a maximum sales
and use tax.
6
Code Sections 12-36-2620, 12-36-2630 and 12-36-2640.

2

years of age and older, does not apply to local taxes administered and collected by the
Department on behalf of local jurisdictions or to local sales taxes administered and
collected directly by a city or county (i.e., the local hospitality tax/fee on prepared meals
and food or the local accommodations tax/fee).
The purpose of this advisory opinion is to provide general guidance as to the
requirements of the 1% reduction for qualifying individuals and the application of the 1%
reduction to routine purchases made by individuals age 85 and older. It is not intended to
address every issue an individual may encounter.
This question and answer document is divided into the following parts:

1. Procedure to Request and Receive Lower Tax Rate
2. Applicability to Common Purchases
3. Retailer Requirements
4. Examples and Additional Guidance

PART I – PROCEDURE TO REQUEST AND RECEIVE LOWER TAX RATE

1. Q. How does an individual 85 years of age or older request the 1% lower state sales
   and use tax rate?
   A. South Carolina Code Sections 12-36-2620, 12-36-2630, and 12-36-2640 provide
   for the 1% lower state sales and use tax rate for individuals 85 years of age or
   older. The law does not require the purchaser to complete any form with the
   Department. It only requires that:
   a. the individual purchases the tangible personal property himself;
   b. the tangible personal property is purchased for his personal use;
   c. the purchaser requests the exclusion at the time of the sale; and
   d. the purchaser provides the retailer with proof of age.
2. Q. Does the lower state sales and use tax rate apply to phone, mail order, and internet
   purchases by an individual 85 years of age or older?
   A. Yes, providing the individual meets the requirements in Question 1, the lower rate
   applies to phone, mail, or internet purchases.
3. Q. If an individual 85 years of age or older fails to request the lower state sales and
   use tax rate and therefore does not receive the lower tax rate at the time of
   purchase, may that individual subsequently request a refund of the 1% state tax?
   A. No. The lower state rate is only available if an individual 85 years of age or older
   requests the lower state sales and use tax rate at the time of purchase.

3

4. Q. If an individual 85 years of age or older fails to provide proof of age at the time of
purchase and therefore does not receive the lower state sales and use tax rate, may
that individual subsequently request a refund of the 1% state tax?
A. No. The lower state rate is only available if an individual 85 years of age or older
provides proof of age at the time of purchase.

5. Q. Are purchases of general use items (e.g., linens, clothes, or medical supplies not
   otherwise exempt) at the request of an individual age 85 and older for his own use
   made by another individual, such as by a family member or a caretaker, allowed
   the reduced tax rate?
   A. No.
6. Q. What are the reduced tax rate amounts?
   A. The general overview above discussed various taxes that may be imposed on
   purchases of different types of tangible personal property. A summary of the
   various state taxes and rate amounts and the tax rate amounts that apply to
   individuals 85 and older is provided below. A discussion of each of the various
   taxes imposed on common purchases made by individuals age 85 and older and
   the applicable tax rate follows in the remainder of this advisory opinion.
   Tax Type on Common Purchases General State
   Tax Rate*
   Sales Tax (General purchases)
   Use Tax (General purchases)
   Items Specifically Exempt from
   Sales and Use Tax (e.g., medicine
   sold by prescription, electricity)
   Sales Tax on Accommodations

6%
6%
0%

Tax Rate for
Individuals 85 and
Older*
5%
5%
0%

Local Tax
Applicable
to All Ages
Yes
Yes
No

7%

6%

Yes

Sales Tax on Additional Guest
6%
5%
Charges
$300 Cap - Maximum Sales and
5%, not to
4%, not to exceed
Use Tax on Certain Items (e.g.,
exceed $300
$300
motor vehicles)
Casual Excise Tax on Maximum
5%, not to
4%, not to exceed
Tax Items Sold by Non-retailers
exceed $300
$300
(e.g., motor vehicles)
Casual Excise Tax on Boat Motors 6%
5%
Sold Alone
*These are the state tax rates as of the date this document was published.

4

Yes
No

No

Yes

7. Q. Does the lower tax rate available to individuals 85 years of age or older also apply
to reduce local taxes?
A. No. The 1% sales and use tax rate reduction does not apply to local taxes
administered and collected by the Department on behalf of local jurisdictions or to
local sales taxes administered and collected directly by a city or county (i.e., the
local hospitality tax/fee on prepared meals and food or the local accommodations
tax/fee).
PART 2 - APPLICABILITY TO COMMON PURCHASES

8. Q. If an individual 85 years of age or older purchases tangible personal property at
   retail for his personal use, what tax rate is applicable to the purchase?
   A. In general, an individual 85 years of age or older who purchases tangible personal
   property at retail for his personal use would pay a state sales and use tax rate of
   5% (instead of the 6% rate applicable to all other persons), plus any applicable
   local sales and use tax. Certain exceptions exist to this general rule and are
   discussed through this document.
   Examples of purchases of tangible personal property subject to this 5% rate
   (instead of the general 6% sales and use tax rate applicable to all other persons)
   include, but are not limited to:
   •
   •
   •
   •
   •
   •
   •
   •
   •
   •
   •

Clothing
Clothing accessories, such as handbags, scarves, hats and hosiery
Jewelry and watches
Cosmetics and toiletries, such as soap and tissues
Household supplies, such as cleaning supplies, light bulbs, and toiletries
Household items, such as draperies and rugs
Furniture, such as sofas, chairs, tables, and lamps
Appliances, such as refrigerators, washers, dryers, and microwave ovens
Electronics, such as cell phones, televisions, computers, and computer
accessories
Car tires and batteries
Communication services, such as cable or internet television.

Food Purchases

9. Q. If an individual 85 years of age or older purchases “unprepared food” at retail for
   his personal use, what tax rate is applicable to the purchase?

5

A. Purchases of “unprepared food” (i.e., the type that can be purchased with food
stamps) 7 by all individuals are exempt from the state sales and use tax. Such
purchases, however, are subject to any applicable local sales and use tax (unless
the local tax law specifically exempts the sale of unprepared food).
Examples of foods that are exempt from the state sales and use tax (i.e.,
“unprepared food”) include:
•
•
•

Any food intended to be eaten at home by people, including snacks,
beverages and seasonings
Seeds and plants intended to grow food (not birdseed or seeds to grow
flowers)
Cold items, which may include salads or sandwiches, intended to be eaten
at home by people and that are not considered “prepared meals or food” as
discussed below.

The term “unprepared” food does not include:
● Meals and food sold by a restaurant, cafeteria, lunch wagon, or other similar
places or businesses engaged in the business of selling prepared meals or
food for immediate consumption;
● Meals prepared and delivered by a meal delivery service;
● Meals sold to or at congregate meal sites; or
● Meals and food sold at a grocery store, convenience store or any other
similar store for the purpose of eating at or near the store, such as meals and
food sold with eating utensils (e.g., plates, knives, forks, spoons, cups,
napkins) provided by the seller.
Examples of foods that are not exempt from the state sales and use tax (i.e.,
“prepared food”) and, therefore, are subject to the state sales and use tax at the
state rate of 5% for individuals 85 years of age or older (6% rate for all other
persons) are:
•
•
•
•
•
•
•
•

Hot foods ready to eat
Hot beverages ready-to-drink, such as coffee
Alcoholic beverages, such as beer, wine, or liquor
Tobacco
Foods designed to be heated in the store
Hot and cold food to be eaten at a lunch counter, in a dining area or
anywhere else in the store, or in a nearby area, such as a mall food court
“Prepared meals or food” as defined in Regulation 117-337.2
Vitamins and medicines not sold by prescription.

7

See SC Code Section 12-36-2120(75) and SC Regulation 117-337, “Sales of Unprepared Food”. The
unprepared food item does not have to be actually purchased with food stamps to qualify for the exemption.

6

10. Q. If an individual 85 years of age or older purchases a prepared food or meal at
retail at a restaurant or similar place for his personal use, what tax rate is
applicable to the purchase?
A. An individual 85 years of age or older who purchases a prepared food or meal at
retail at a restaurant or similar place for his personal use would pay a state sales
tax rate of 5% (instead of the 6% rate applicable to all other persons), plus any
applicable local sales tax.
Note: In addition to the 6% state sales tax on food purchases (5% for individuals
85 years of age and older) and any local tax administered and collected by the
Department on behalf of local jurisdictions, some cities and counties impose a
local hospitality tax on prepared meals and beverages that must be paid by
persons of all ages.
Medicines

11. Q. If an individual 85 years of age or older purchases at retail prescription medicines
    from a pharmacy (as a result of a physician’s prescription) for his personal use,
    what tax rate is applicable to the purchase?
    A. Purchases at retail of prescription medicines from a pharmacy (as a result of a
    physician’s prescription) are exempt from state and local sales and use taxes
    under Code Section 12-36-2120(28). This includes purchases of prescription
    medicines from a mail order or internet pharmacy as well as a local pharmacy.
12. Q. If an individual 85 years of age or older purchases at retail over-the-counter
    medicines (e.g., aspirin) for his personal use, what tax rate is applicable to the
    purchase?
    A. An individual 85 years of age or older who purchases at retail over-the-counter
    medicines (e.g., aspirin) for his personal use would pay a state sales and use tax
    rate of 5% (instead of the 6% rate applicable to all other persons), plus any
    applicable local sales and use tax.
    Diabetic Supplies
13. Q. If an individual 85 years of age or older who is a diabetic purchases at retail
    hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet
    lancets, dextrometer supplies, blood glucose meters, and other similar diabetic
    supplies under the written authorization and direction of a physician for his
    personal use, what tax rate is applicable to the purchase?
    A. Purchases by a diabetic of hypodermic needles, insulin, alcohol swabs, blood
    sugar testing strips, monolet lancets, dextrometer supplies, blood glucose meters,
    and other similar diabetic supplies under the written authorization and direction of
    a physician are exempt from state and local sales and use taxes under Code
    Section 12-21-2120(28).
    7

Other Medical Supplies, Durable Medical Equipment, and Health Care Items

14. Q. If an individual purchases medical supplies and equipment for his personal use,
    what tax rate is applicable to the purchase?
    A. An individual 85 years of age or older who purchases medical supplies for his
    personal use that are not specifically exempt from sales and use tax would pay a
    state sales and use tax rate of 5% (instead of the 6% rate applicable to all other
    persons), plus any applicable local sales and use tax. See Code Section 12-362120(28), (38), (63), and (74) and SC Revenue Ruling #11-3 for additional
    guidance on specific exemptions.
    Gifts
15. Q. If an individual 85 years of age or older purchases a gift for another individual or
    for business use, what tax rate is applicable to the purchase?
    A. An individual 85 years of age or older who purchases a gift for another individual
    or for business use would pay a state sales and use tax rate of 6%, plus any
    applicable local sales and use tax. The item is not subject to the lower state rate
    since the gift or item purchased as a gift is not for the personal use of the
    individual 85 years of age or older.
16. Q. If an individual 85 years of age or older receives a gift purchased by another
    individual, what tax rate is applicable to the purchase?
    A. An individual who purchases a gift for an individual 85 years of age or older
    would pay a state sales and use tax rate of 6%, plus any applicable local sales and
    use tax, since the item was not purchased by an individual 85 years of age or older
    for his own personal use.
    Residential Electricity Purchases
17. Q. If an individual 85 years of age or older purchases electricity at retail for
    residential purposes for his personal use, what tax rate is applicable to the
    purchase?
    A. Purchases of electricity at retail for residential purposes are exempt from state and
    local sales and use taxes under Code Section 12-36-2120(33) for persons of all
    ages.

8

Communications Services (Telephone, Cable TV, Etc.) 8

18. Q. If an individual 85 years of age or older purchases communication services at
    retail such as telephone services, cable and satellite television services, radio or
    emergency services for his personal use, what tax rate is applicable to the
    purchase?
    A. An individual 85 years of age or older who purchases communication services at
    retail such as telephone services, cable television services, and satellite television,
    radio or emergency services for his personal use would pay a state sales and use
    tax rate of 5% (instead of the 6% rate applicable to all other persons), plus any
    applicable local sales and use tax.
    Examples of purchases of communication services 9 subject to this 5% rate
    (instead of the 6% rate applicable to all other persons) include, but are not limited
    to:
    •
    •
    •
    •
    •
    •

Telephone services (Note: Charges for long distance calls are exempt from
the sales and use tax for persons of all ages)
Cable television services
Satellite programming services and other programming transmission
services (includes, but is not limited to, emergency communication
services and television, radio, music or other programming services)
Fax transmission services
Email services
Database access transmission services (online information services), such
as charges to access an individual website (e.g., monthly charges to access
a sports website).

Laundry and Drycleaning Purchases 10

19. Q. If an individual 85 years of age or older purchases laundry and drycleaning
    services at retail for his personal use, what tax rate is applicable to the purchase?
    A. An individual 85 years of age or older who purchases laundry and drycleaning
    services at retail for his personal use would pay a state sales and use tax rate of
    5% (instead of the 6% rate applicable to all other persons), plus any applicable
    local sales and use tax.
    Note: Some drycleaning facilities must also charge a 1% environmental surcharge
    on charges for laundry and drycleaning services under Code Section 44-56-450.
    This surcharge paid by an individual 85 years of age and older is not eligible for
    the 1% sales and use tax rate reduction.
    8

Code Section 12-36-910(B)(3).
Other charges and fees may apply that are not discussed in this document.
10
Code Section 12-36-910(B)(1).
9

9

Sleeping Accommodations (Hotels, Motels, Condominium Rentals) 11

20. Q. If an individual 85 years of age or older purchases at retail sleeping
    accommodations for his personal use, what tax rate is applicable to the purchase?
    A. Charges for accommodations at hotels, motels, campgrounds and any other place
    where sleeping accommodations are furnished are subject to the sales tax;
    however, charges for sleeping accommodations supplied to the same person for a
    period of 90 or more continuous days are not subject to the sales tax on
    accommodations.
    An individual 85 years of age or older who purchases sleeping accommodations
    for less than 90 continuous days for his personal use would pay a state sales and
    use tax rate of 6% (instead of the 7% tax rate applicable to all other persons), plus
    any applicable local sales and use tax.
    Note: In addition to the 7% state tax (6% for individuals 85 years of age and
    older) and any local tax administered and collected by the Department on behalf
    of local jurisdictions, some cities and counties impose a local accommodations tax
    on sleeping accommodations.
21. Q. If an individual 85 years of age or older pays for “additional guest charges” that
    were for his personal use at a place that furnishes sleeping accommodations
    subject to the sales tax on accommodations, what tax rate is applicable to these
    “additional guest charges?”
    A. An individual 85 years of age or older paying for “additional guest charges” that
    were for his personal use at a place that furnishes sleeping accommodations
    subject to the sales tax on accommodations would pay a state sales and use tax
    rate of 5% (instead of the 6% tax rate applicable to all other persons), plus any
    applicable local sales and use tax.
    “Additional guest charges” include:
    • Room service;
    • Laundering and drycleaning services;
    • In-room movies; and
    • Telephone service.
    Motor Vehicle Purchases, Leases and Rentals 12
22. Q. If an individual 85 years of age or older purchases at retail a motor vehicle for his
    personal use, what state sales and use tax rate is applicable to the purchase?
    11
    12

Code Section 12-36-920 and SC Regulation 117-307, “Hotels, Motels, and Similar Facilities”.
Code Section 12-36-2110.

10

A. An individual 85 years of age or older who purchases at retail a motor vehicle for
his personal use would pay a state sales and use tax rate of 4% (instead of the
5% 13 rate applicable to all other persons purchasing this maximum tax item).
The 4% tax rate is applied to the sales price (less any applicable trade-in) of the
motor vehicle and if the tax as calculated exceeds the $300 maximum tax the
individual 85 years of age or older would only pay $300.
Note: Local sales and use taxes do not apply to purchases of a motor vehicle
subject to the $300 maximum tax.

23. Q. If an individual 85 years of age or older leases at retail a motor vehicle for more
    than 90 continuous days for his personal use, what tax rate is applicable to the
    lease?
    A. An individual 85 years of age or older who leases at retail a motor vehicle for
    more than 90 continuous days for his personal use would pay a state sales and use
    tax rate of 4% (instead of the 5% tax rate applicable to all other persons leasing a
    motor vehicle for more than 90 continuous days) and would pay no more than the
    $300 maximum tax, provided the lease was in writing, stated a term of more than
    90 continuous days, and remained in force for more than 90 continuous days.
    Local sales and use taxes do not apply to leases of motor vehicles that meet these
    requirements.
    The 4% tax rate is applied to each lease payment until the total tax paid equals
    $300; however, the law allows the entire $300 to be paid at the time the lease is
    executed.
    Note: If the lease is not in writing, or does not state a term of more than 90
    continuous days, or does not remain in force for more than 90 continuous days,
    then the individual 85 years of age or older would pay a state sales and use tax
    rate of 5% (instead of the 6% tax rate applicable to all other persons) and the
    applicable local sales and use taxes. In addition, the $300 maximum tax would not
    apply to the lease.
24. Q. If an individual 85 years of age or older rents at retail a motor vehicle for 90 or
    less continuous days for his personal use, what tax rate is applicable to the rental?
    A. An individual 85 years of age or older who rents at retail a motor vehicle for 90 or
    less continuous days for his personal use would pay a state sales and use tax rate
    of 5% (instead of the 6% tax rate applicable to all other persons), plus any
    applicable local sales and use tax.

13

Code Section 12-36-1110 increased the state sales tax rate from 5% to 6% beginning June 2007. This
provision, however, does not apply to the sale or lease of tangible personal property subject to the
maximum tax.

11

PART 3 – RETAILER REQUIREMENTS

25. Q. What responsibilities does a retailer have with respect to the law that provides the
    lower state sales and use tax rate for sales to individuals 85 years of age or older?
    A. Retailers are required to post a sign at each entrance or each cash register which
    advises individuals 85 years of age or older of the lower state sales and use tax
    rate available to them. The signs posted will generally refer to a “1% reduction”
    from the state sales and use tax.
26. Q. What if a retailer fails to post the sign?
    A. A retailer who fails to post the required signs is subject to a penalty of up to $100
    for each month or portion of the month the sign or signs are not posted. Continued
    failure to post the signs after a written warning from the Department may result in
    revocation of the retailer’s retail license.
    Note: Failure to post the signs does not give rise to a cause of action by an
    individual 85 years of age or older who failed to request the exclusion and provide
    proof of age at the time of sale.

PART 4 –EXAMPLES AND ADDITIONAL GUIDANCE

27. Q. Where can additional information be obtained about the lower state tax rates?
    A. The chart below provides a summary of general information about the 1% rate
    reduction. For further information about South Carolina’s sales and use tax, see
    the Department’s website at www.dor.sc.gov.
    SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Rick Reames III
Rick Reames III, Director
July 17
, 2016
Columbia, South Carolina

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SUMMARY CHART
This chart is intended only as general guidance. Any purchases that come within a
specific exemption are not subject to the tax (e.g., prescription medicine, purchases of
clothing or computers during the annual sales tax holiday, and residential electricity).

State Sales and Use Tax Rates for Purchases
by Individuals 85 Years of Age and Older

Type of Purchase

Examples

General Items
(Except as noted
below)

clothes, household
items, cosmetics,
appliances, electronics,
cleaning supplies, etc.
grocery staples, canned
goods, meat, milk,
breads, soft drinks, etc.

6%

State Rate for
Individuals 85
Years of Age
and Older
5%

0%

0%

restaurant foods and
meals
prescription medicines
sold by prescription

6%

5%

Applicable,
unless
otherwise
exempt
under the
local law
Applicable

0%

0%

0%

over-the-counter
medicines

6%

5%

Applicable

0%

0%

0%

local telephone service,
cable TV service
store pick-up or home
delivery
room charges

6%

5%

Applicable

6%

5%

Applicable

7%

6%

Applicable

additional guest charges
cars, boats

6%
5%, but
no more
than $300

5%
4%, but no
more than $300

Applicable
0%

Unprepared Food

Prepared Food
Medicines

Residential
Electricity and
Gas
Communications
Services
Drycleaning
Accommodations
Charges
Items Subject to
the $300
Maximum Tax

State
Rate

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Local Sales
and Use Tax
Applicable