When can a South Carolina purchaser age 85 or older receive the one-percentage-point reduction in the state sales, use, or casual excise tax rate?

Plain-English summary

South Carolina Revenue Ruling 18-10 explains a one-percentage-point reduction in the state sales, use, and certain casual excise tax rates for an individual age 85 or older. Four conditions must all be met: the individual must personally make the purchase, buy the property for personal use, request the reduction at the time of sale, and provide the retailer with proof of age.

The reduction is not automatic and cannot be claimed later as a refund when the purchaser failed to request it or show proof of age at the time of purchase. It also does not apply when a family member or caretaker makes the purchase, when the older individual buys a gift for someone else or an item for business use, or when someone else buys a gift for the older individual.

Under the rates stated in this 2018 ruling, a qualifying purchaser generally paid a 5% state rate instead of 6% on taxable personal-use purchases. The one-point reduction also applied to phone, mail-order, and Internet purchases when all requirements were met. It did not reduce local sales and use taxes, locally administered hospitality or accommodations taxes, the dry-cleaning environmental surcharge, or the infrastructure maintenance fee.

The ruling also distinguishes a reduced rate from a full exemption. Prescription medicine dispensed by a pharmacy on a physician's prescription, qualifying diabetic supplies, residential electricity, and other specifically exempt items remained exempt for purchasers of every age. Unprepared food was exempt from state sales and use tax, although an applicable local tax could still apply. Taxable prepared food, over-the-counter medicine, communications services, dry cleaning, and many other personal-use purchases qualified for the lower state rate.

What this means for you

Purchasers age 85 or older

Ask for the reduction before the sale is completed and be ready to prove your age. You must make the purchase yourself and the item or service must be for your own personal use. The ruling denies the reduction when a caretaker shops on your behalf, even at your request, and when you buy for another person or for business use.

Retailers

The ruling says retailers must post a notice at each entrance or each cash register advising eligible purchasers of the reduction. Failure to post could produce a penalty of up to $100 for each month or part of a month and, after a written warning, possible revocation of the retail license. A missing sign did not excuse the purchaser from requesting the reduction and proving age at the time of sale.

Accountants and tax professionals

Separate three questions: whether the purchase is exempt for everyone, whether it is taxable but eligible for the one-point state-rate reduction, and whether a local tax or separate fee remains due. The ruling's figures are explicitly the rates in effect when published, so current-law verification is essential.

Common questions

Q: Can the purchaser ask for a refund later if the reduction was missed?
A: No. The ruling says there is no later refund when the individual failed either to request the reduction or to provide proof of age at the time of purchase.

Q: Can a family member or caretaker make the purchase for the eligible individual?
A: No. The individual age 85 or older must personally purchase the property.

Q: Does the reduction apply to gifts?
A: No. An item the older purchaser buys for another person or for business use is not for that purchaser's personal use. A gift bought by someone else for the older individual also does not qualify because the eligible individual did not make the purchase.

Q: Does the reduction lower local taxes?
A: No. It reduces only the qualifying state tax rate. The ruling says applicable local sales and use taxes and locally administered hospitality or accommodations taxes remain unchanged.

Q: How did the ruling treat hotel stays?
A: For a personal-use stay of fewer than 90 continuous days, the ruling reduced the state accommodations rate from 7% to 6%, while local tax could still apply. It reduced the state rate on taxable additional guest charges from 6% to 5%.

Q: Does age reduce the infrastructure maintenance fee on a registered motor vehicle?
A: No. The ruling said the same 5% fee, capped at $500 at that time, applied regardless of age when a qualifying motor vehicle was first registered. Verify today's fee and cap.

Citations and references

• S.C. Code Ann. Sections 12-36-2620, 12-36-2630, and 12-36-2640 (requirements for the lower state rate)
• S.C. Code Ann. Sections 12-36-910, 12-36-1110, and 12-36-1310 (sales and use taxes)
• S.C. Code Ann. Section 12-36-920(A) and (B) (accommodations and additional guest charges)
• S.C. Code Ann. Section 12-36-2110 (maximum-tax items)
• S.C. Code Ann. Sections 12-36-1710 through 12-36-1740 (casual excise tax)
• S.C. Code Ann. Section 12-36-2120(28), (33), (75), and (83) (selected exemptions discussed in the ruling)
• S.C. Code Ann. Section 56-3-627 (infrastructure maintenance fee)
• SC Regulation 117-337 (unprepared food)
• SC Regulation 117-307 (hotels, motels, and similar facilities)

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/RR18-10.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 #18-10

SUBJECT:

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

EFFECTIVE DATE:

July 1, 2017

SUPERSEDES:

SC Revenue Ruling #16-9 and all previous documents and any oral
directives in conflict herewith

REFERENCES:

Chapter 36 of Title 12 (2014, Supp. 2017)
S.C. Code Ann. Section 56-3-627 (Supp. 2017)

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.

PURPOSE OF ADVISORY OPINION UPDATE
In July 2017, the South Carolina Infrastructure and Economic Development Reform Act was
enacted to address the funding of significant road maintenance. To accomplish this purpose, the
“maximum tax” for sales and use taxes was increased to $500 from $300 on certain items, and a
new “infrastructure maintenance fee” was imposed upon the registration of a motor vehicle with
the South Carolina Department of Motor Vehicles. The infrastructure maintenance fee is
imposed at the same rate for all individuals regardless of age. This document is being revised to
reflect these law changes concerning the maximum tax, the casual excise tax, and taxation of
motor vehicles (see Questions 22 – 24 below). The remainder of the document remains
unchanged.

1

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 complementary 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.
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 fewer 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.
“Maximum Tax.” 3 Sales or leases of motor vehicles, boats, and recreation vehicles are subject a
5% sales and use tax, but the tax may not exceed $500. This maximum tax does not apply to
many items, such as golf carts, all-terrain vehicles, or boat trailers. Sales of items subject to the
maximum tax are exempt from local sales and use taxes. 4

1

Code Sections 12-36-910, 12-36-1110, and 12-36-1310.
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 does not apply to the tax on the rental of
accommodations under Code Section 12-36-920(A), but the 1% increase does apply to the sales tax on additional
guest charges under Code Section 12-36-920(B).
3
Code Section 12-36-2110.
4
The intent of this advisory opinion is to address common purchases made by individuals 85 years of age and older.
While a maximum sales and use tax, of either $300 or $500, applies to certain other items under Code Section 1236-2120, this advisory opinion will not address those items since they are either not applicable to, or common
purchases of, individuals 85 years of age and older.
2

2

Casual Excise Tax. 5 Boats and boat motors purchased from a non-retailer (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% 6 (not to exceed $500) for items that qualify
for the maximum tax, such as a boat, 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. 7
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 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.
The question and answer portion of this document is divided into the following parts:
1.
2.
3.
4.

Procedure to Request and Receive Lower Tax Rate
Applicability to Common Purchases
Retailer Requirements
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;
   5

Code Section 12-36-1710.
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.
7
Code Sections 12-36-2620, 12-36-2630 and 12-36-2640.
6

3

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.
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.

4

Tax Type on Common Purchases

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
Sales Tax on Additional Guest Charges
Maximum Sales and Use Tax on Certain
Items to be Registered with the SCDMV
(e.g., motor vehicles, recreational
vehicles)

General
State Sales
and Use Tax
Rate*
6%
6%
0%

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

Local Sales
and Use
Tax Applicable
to All Ages
Yes
Yes
No

7%
6%

6%
5%

Yes
Yes

0%
(However, an
infrastructure
maintenance
fee of 5%, not
to exceed
$500 applies)
5%, not to
exceed $500

0%
No
(However, an
infrastructure
maintenance fee
of 5%, not to
exceed $500
applies)
4%, not to
No
exceed $500

Casual Excise Tax on Maximum Tax
Items not Registered with the SCDMV
(e.g., boats)
Casual Excise Tax on Boat Motors Sold 6%
5%
Alone
*These are the state tax rates as of the date this document was published.

No

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.

5

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?
   A. Purchases of “unprepared food” (i.e., the type that can be purchased with food stamps) 8
   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
8

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

● 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.

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 1236-2120(28). This includes purchases of prescription medicines from a mail order or
    internet pharmacy as well as a local pharmacy.

7

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 12-36-2120(28)(b).
    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 12-36-2120(28), (38), (63), (74), and (80) 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.
    8

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.
    Communications Services (Telephone, Cable TV, Etc.) 9
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 10 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 11

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.
    9

Code Sections 12-36-910(B)(3) and 12-36-1310(B)(3).
Other charges and fees may apply that are not discussed in this document.
11
Code Section 12-36-910(B)(1).
10

9

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.
Sleeping Accommodations (Hotels, Motels, Condominium Rentals) 12

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 fewer
    than 90 continuous days for his personal use would pay a state sales tax rate of 6%
    (instead of the 7% tax rate applicable to all other persons), plus any applicable local sales
    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 tax.
    “Additional guest charges” include:
    • Room service;
    • Laundering and drycleaning services;
    • In-room movies; and
    • Telephone service

12

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

10

Motor Vehicle Purchases, Leases, and Rentals 13

22. Q. If a resident individual 85 years of age or older purchases, for his personal use, a motor
    vehicle that will be registered in South Carolina, does the state sales and use tax or any
    local sales and use tax apply to the purchase?
    A. No. The sale of a motor vehicle to a resident for registration in South Carolina is exempt
    from the state sales and use tax and any local sales and use taxes. 14 Instead, the sale is
    subject to an “infrastructure maintenance fee” upon first registration of the motor vehicle
    at the South Carolina Department of Motor Vehicles. The registration fee is imposed at a
    rate of 5% up to $500 for any age individual. There is no alternate infrastructure
    maintenance fee rate for individuals 85 and older.
23. Q. If a resident individual 85 years of age or older leases a motor vehicle for his personal use
    for more than 90 continuous days, and the motor vehicle will be registered in South
    Carolina, does the state sales and use tax or any local sales and use taxes apply to the
    lease?
    A. No. The lease of a motor vehicle to a resident for registration in South Carolina is exempt
    from the state sales and use tax and any local sales and use taxes. 15 Instead, the lease is
    subject to an infrastructure maintenance fee upon first registration of the motor vehicle at
    the South Carolina Department of Motor Vehicles. The infrastructure maintenance fee is
    imposed at a rate of 5% up to $500 for any age individual. There is no alternate
    infrastructure maintenance fee rate for individuals 85 and older.
24. Q. If an individual 85 years of age or older rents at retail a motor vehicle for 90 or fewer
    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 fewer
    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.
    Note: For additional information regarding the taxation of motor vehicles to residents and
    nonresidents, see SC Information Letter #17-10 and SC Revenue Ruling #18-1. Questions
    regarding the infrastructure maintenance fee remitted to the South Carolina Department of Motor
    Vehicles should be e-mailed to [email protected].

13

Code Section 12-36-2110.
Code Section 12-36-2120(83).
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Code Section 12-36-2120(83)
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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/W. Hartley Powell
W. Hartley Powell, Director
June 7
, 2018
Columbia, South Carolina

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

State Sales
and Use Rate

State Sales
and Use Tax
Local Sales
Rate for
and Use
Individuals 85
Tax
Years of Age
and Older
5%
Applicable

Type of Purchase

Examples

General Items
(Except as noted
below)
Unprepared Food

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

6%

0%

0%

Prepared Food
Medicines

restaurant foods and meals
prescription medicines
sold by prescription

6%
0%

5%
0%

Applicable,
unless
exempt
under the
local law
Applicable
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

Residential
Electricity and
Gas
Communications
Services
Drycleaning
Accommodations
Charges

additional guest charges
Cars, motorcycles

6%
5%
Applicable
0%
0%
0%
Motor Vehicle
(Infrastructure (Infrastructure
(Purchase or
maintenance
maintenance
Lease) to be
fee of 5%, but fee of 5%, but
Registered in SC
no more than
no more than
with DMV
$500)
$500)
Boats
5%, but not
4%, but not
0%
Maximum Sales
more than
more than
Tax Items
$500
$500
Note: 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).

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