Which farm purchases are exempt from South Carolina sales tax, and how does the SCATE card work?

Plain-English summary

South Carolina Revenue Ruling #23-4 is the Department's farmer sales-tax FAQ, paired with long lists of specific exempt and taxable items. It explains how the SCATE card works and walks through the common agricultural exemptions.

Note: RR #23-4 has since been superseded by SC Revenue Ruling #25-6 (Revised), which updates and replaces this guidance. Use #25-6 for current rules; #23-4 is preserved here for reference and because the underlying framework is largely the same.

The core rule. Farmers generally must pay sales and use tax on retail purchases like anyone else. Certain items are exempt only when two things are true: the item is in an exempt category, and it's used in the agriculture industry for business purposes. A hobby farmer who isn't in the business doesn't qualify — and can't get a SCATE card. (The ruling's example: a tractor implement used to grow vegetables for sale is exempt; the same implement used to cultivate a food plot for wild game is not, even with a SCATE card.)

The SCATE card. The South Carolina Agriculture Tax Exemption ("SCATE") card, issued by the SC Department of Agriculture (apply at scatecard.com), is how a farmer proves the exemption. It replaced the old Form ST-8F effective July 1, 2022. The farmer must present a valid SCATE card at the first purchase with each retailer; later purchases from that retailer ride on the card while it stays valid.

The eight exemption categories. Items used for agricultural business purposes are exempt across: (1) machines, parts, and attachments; (2) livestock; (3) feed; (4) insecticides, chemicals, fertilizers, soil conditioners, seeds, and seedlings; (5) containers and labels; (6) fuel; (7) electricity and gas; and (8) building materials, supplies, fixtures, and equipment for commercial housing of poultry and livestock.

What's exempt for everyone (no SCATE card needed):

• All livestock and all livestock feed — exempt even if bought for personal use (§ 12-36-2120(4), (5)). But "livestock" means domesticated animals customarily raised on SC farms as beasts of burden or food, or mammals raised for pelts/furs — not dogs, cats, reptiles, or worms.
• Seeds and plants grown for food (not birdseed or flower seeds) — exempt as unprepared food, even for personal use — but only from the state sales tax; local sales tax can still apply unless a county exempts it (§ 12-36-2120(75); see RR #16-8).

Machinery — the "substantial use" test. Farm machinery (including for forest products) is exempt if used in planting, cultivating, or harvesting farm crops for sale, plus replacement parts and attachments (§ 12-36-2120(16); Reg. 117-301.5). It must be used substantially — not merely incidentally — for those purposes. Automobiles and trucks are never eligible. The item lists show the nuances: e.g., a flatbed/stock trailer used to haul crops is exempt, but the same trailer not used for planting/cultivating/harvesting is taxable; ATVs/UTVs/side-by-sides are taxable and subject to the maximum sales and use tax under § 12-36-2110 (see RR #23-3).

Fuel/oil/grease caveat. Oils, greases, lubricants, and coolants essential to an exempt farm machine were treated as exempt "fuels used in farm machinery" under Proviso 109.18 of Act No. 84 of 2023 — an annual budget proviso that sunsets unless renewed.

If a retailer wrongly charges tax. Ask the retailer for a refund first. If refused, the farmer can seek a refund from the Department, but must first get a written assignment of the right to the refund from the retailer — Form ST-16 (§ 12-60-470; see RR #21-1).

Retailer duties. A retailer must accept a valid SCATE card for eligible items; doing so shifts the sales-tax liability to the purchaser (if the retailer didn't fraudulently fail to collect, didn't solicit an unlawful exemption claim, and keeps proper records). Only the eligible items in a mixed sale are tax-free. Retailers must keep records — including the SCATE card number, items, and prices — for at least 4 years (Reg. 117-200), and may verify a card's status at scatecard.com.

What this means for you

Farmers and agricultural businesses

If you farm as a business, get a SCATE card and present it at your first purchase with each supplier — that's what unlocks the machinery, chemicals, containers, fuel, and other category exemptions. Remember the split: livestock, feed, and food-seeds are tax-free even without the card, but the food-seed break only covers state tax. Don't assume a truck, ATV, or a shared-use implement qualifies — the machinery exemption needs substantial crop-for-sale use, and vehicles are out. Because this ruling has been superseded by RR #25-6, confirm any close call against that current version.

Retailers

Accept the SCATE card for eligible items and log the card number, items, and prices each exempt sale; that recordkeeping (kept 4+ years) is what shifts the tax liability off you. Tax the non-eligible items in a mixed cart. You can check a card's status at scatecard.com but aren't required to.

Accountants and tax professionals

This FAQ is a useful map of the § 12-36-2120 agricultural exemptions and the SCATE mechanics, but treat it as historical — RR #25-6 (Revised) now controls. Watch the state-vs-local split on food-seeds, the substantial-use machinery test, the auto/truck and ATV/UTV exclusions (max-tax under § 12-36-2110), the Form ST-16 refund-assignment requirement, and any budget-proviso-dependent fuel treatment that may have lapsed.

Common questions

Q: Do farmers pay sales tax at all?
A: Generally yes — farmers pay sales and use tax on retail purchases. Only specific categories of items, used in the agriculture business, are exempt.

Q: What is a SCATE card and do I need one?
A: It's the South Carolina Agriculture Tax Exemption card from the SC Department of Agriculture (scatecard.com). You must present a valid one at your first purchase with each retailer to claim most agricultural exemptions. It replaced Form ST-8F on July 1, 2022.

Q: Is anything exempt without a card?
A: Yes — all livestock and all livestock feed (even for personal use), and seeds/plants grown for food (state tax only; local tax may still apply).

Q: Are my truck and ATV exempt if I use them on the farm?
A: No. Automobiles and trucks are never eligible, and ATVs/UTVs/side-by-sides are taxable (and subject to the maximum sales and use tax under § 12-36-2110). Machinery must be used substantially to plant, cultivate, or harvest crops for sale.

Q: A retailer charged me tax on an exempt item — how do I fix it?
A: Ask the retailer for a refund. If they refuse, you can file with the Department, but you must first get a written assignment of the right to the refund from the retailer (Form ST-16).

Q: Is this ruling still current?
A: No. RR #23-4 has been superseded by RR #25-6 (Revised). Use #25-6 for present-day guidance.

Citations and references

Statutes and regulations:

• S.C. Code Ann. § 12-36-2120 — the agricultural sales and use tax exemptions, including subsections (4)/(5) (livestock and feed for everyone), (16) (farm machinery, parts, attachments), and (75) (unprepared food, including food seeds/plants)
• S.C. Code Ann. § 12-36-2110 — the maximum sales and use tax cap (applies to ATVs/UTVs/side-by-sides)
• S.C. Code Ann. § 12-60-470 — refunds; the retailer's written assignment of the right to a refund (Form ST-16)
• S.C. Code Regs. 117-301 — the agricultural exemptions; 117-301.5 (farm machinery)
• S.C. Code Regs. 117-200 — recordkeeping requirements

Related Department rulings (described in prose, not linked): RR #25-6 (Revised) supersedes this ruling; RR #23-3 (ATVs/UTVs and the maximum tax); RR #16-8 (food-seed state-only exemption / local tax); RR #21-1 (refunds); RR #08-8 (machinery examples). The ruling also references the SCATE program at scatecard.com and Proviso 109.18 of Act No. 84 of 2023.

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR23-4.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC REVENUE RULING 23-4

SUBJECT:

Tax Exemptions for Farmers – Frequently Asked Questions and List of
Eligible Items
(Sales and Use Tax)

EFFECTIVE DATE:

July 1, 2022 1

REFERENCES:

S.C. Code Ann. Section 12-36-2120 (2014; Supp. 2022)
S.C. Regulation 117-301 (2012)
S.C. Regulation 117-200 (2012)

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.

OVERVIEW AND PURPOSE
Farmers in the agriculture industry enjoy numerous exemptions from South Carolina’s sales and use tax.
Farmers issued a South Carolina Agriculture Tax Exemption (“SCATE”) card by the South Carolina
Department of Agriculture may purchase certain items free of state sales and use tax and free of any
local sales and use taxes collected by the Department on behalf of local jurisdictions. 2 For a sale to be

The South Carolina Department of Agriculture began issuing SCATE cards in January 2022 and
replaced the Department of Revenue issued Form ST-8F on July 1, 2022.
2
In this document, sales tax will reference both sales and use tax. If a product or transaction is exempt
from sales tax it is also exempt from use tax.
1

1

exempt requires the farmer’s use of the product in the agricultural industry for business purposes. 3 For
example, a farmer’s purchase of a tractor implement used to cultivate a field used to grow vegetables for
sale for human consumption is exempt.4 The same implement used to cultivate a food plot for wild game
is not exempt even if the purchaser holds a SCATE card.
The purpose of this advisory opinion is to provide guidance relating to the use of the SCATE card as
well as the common exemptions available to farmers. In general, sales of items in the following
categories are exempt from sales tax when used for agriculture business purposes: 1) Machines, Parts,
and Attachments; 2) Livestock; 3) Feed; 4) Insecticides, Chemicals, Fertilizers, Soil Conditioners, Seeds,
and Seedlings; 5) Containers and Labels; 6) Fuel; 7) Electricity and Gas; and 8) Building Materials,
Supplies, Fixtures, and Equipment for Commercial Housing of Poultry and Livestock. This Revenue
Ruling includes frequently asked questions regarding the exemptions available to farmers issued a
SCATE card. Additionally, the charts included in this document provide a summary of each exemption
as well as a non-exhaustive list of common exempt and non-exempt items.

3

A hobby farmer who does not participate in the agriculture industry for business purposes is not
eligible for the agriculture sales tax exemptions, nor would a hobby farmer qualify for a SCATE card.
4
Additionally, the purchased farm machinery must be used substantially (not merely incidentally) in
the planting, cultivating, or harvesting of farm crops for sale in their original state of production or
preparation for sale.
2

SOUTH CAROLINA TAX EXEMPTIONS FOR FARMERS
Frequently Asked Questions
GENERAL QUESTIONS: FARMERS

1. Q. Are farmers required to pay sales and use tax on their retail purchases?
   A. In general, farmers must pay sales and use tax on their purchases. Sales of tangible personal
   property and taxable services at retail to farmers are subject to sales or use tax. Some sales,
   which are described in the attached charts, are specifically exempted under the sales and use
   tax law. Broadly, exempt products are those used in the agricultural industry for agricultural
   business purposes.
2. Q. Who may claim agriculture sales tax exemptions?
   A. Farmers who participate in the agriculture industry for business purposes are eligible to
   purchase certain items used in their business tax free. 5 However, a South Carolina
   Agriculture Tax Exemption (“SCATE”) card must be presented at the time of purchase for
   eligible agriculture products to be exempt from sales tax. 6
   Hobby farmers who do not participate in the agriculture industry for business purposes are
   not eligible for the agriculture sales tax exemptions.
3. Q. Who qualifies for a SCATE card?
   A. Farmers who participate in the agriculture industry for business purposes are eligible to
   receive a SCATE card.
4. Q. Do all animal breeders qualify for a SCATE card?
   A. No. The livestock exemption only applies to the sale of domesticated animals customarily
   raised in South Carolina farms for use primarily as beasts of burden or food as well as the
   sale of mammals raised for their pelts or furs. The sales of such animals as dogs, cats,
   reptiles, and worms do not meet the statutory requirements to qualify for the exemption; and
   therefore, do not qualify for the SCATE card.
   5

All sales of livestock and feed are exempt from sales and use tax, even if purchased for personal use.
Therefore, any purchaser can purchase livestock and livestock feed tax free without presenting a
SCATE card at the time of purchase. S.C. Code Ann. §§ 12-36-2120 (4) and (5) and S.C. Code Regs.
§ 117-301.1 and 117-301.2.
Additionally, seeds and plants intended to grow food (not birdseed or seeds to grow flowers) are
exempt from the state sales and use tax as unprepared food items, even if purchased for personal use.
However, this exemption only applies to the state sales and use tax. Unless a county exemption
applies, unprepared food items remain subject to local sales and use taxes. S.C. Code Ann. § 12-362120 (75) and S.C. Code Regs. § 117-337.1(A)(2). See South Carolina Revenue Ruling #16-8.
6
For many years, farmers were required to present an exemption certificate (“Form ST-8F”) to
purchase eligible items exempt from the sales and use tax. Form ST-8F is no longer valid. Effective
July 1, 2022, the SCATE card replaced Form ST-8F.
3

5. Q. How does a farmer apply for a SCATE card?
A. SCATE cards are issued by the South Carolina Department of Agriculture and applications
are submitted through an online portal at scatecard.com. The South Carolina Department of
Agriculture provides additional information at the following link:
https://agriculture.sc.gov/faq/scate/.

6. Q. How are eligible agriculture items purchased sales tax free pursuant to an agriculture
   exemption?
   A. A farmer must present a valid SCATE card to the retailer at the time of the farmer’s initial
   purchase with each retailer where exempt items are purchased. The farmer may make
   subsequent purchases on the previously submitted SCATE card as long as the previously
   submitted SCATE card remains valid.
7. Q. What if a retailer charges sales tax on an item that the farmer believes is exempt?
   A. If a farmer believes that a retailer erroneously charged sales tax, a farmer should discuss the
   issue with the retailer and request a refund. If the retailer refuses, the farmer may file for a
   refund with the Department. However, pursuant to S.C. Code § 12-60-470, the farmer must
   secure from the retailer a written assignment of the right to claim and obtain the refund,
   which is Form ST-16. Once the farmer secures the assignment, the farmer can then file a
   request for a refund and the Department will evaluate whether the imposition of sales tax
   was proper or improper. 7
   GENERAL QUESTIONS: RETAILERS
8. Q. Is a farmer required to present a SCATE card at the time of purchase for the sale to be tax
   free?
   A. Yes, a farmer must present a valid SCATE card at the time of the farmer’s initial purchase
   of an eligible item with each retailer as proof of an exemption. However, a farmer may make
   subsequent purchases from that retailer on the previously submitted SCATE card as long as
   that SCATE card remains valid.
   A retailer must maintain evidence of each exempt sale, including the SCATE card number.
9. Q. Is the entire sale tax free when the sale includes both eligible agriculture items and noneligible items?
   A. No, only eligible agriculture items may be purchased tax free.
10. Q. What information must the retailer collect when making an exempt sale?
    A. A retailer must maintain all records that are necessary to confirm that a sale was exempt
    from sales or use tax. When making an exempt sale, a retailer must verify the identity of the
    SCATE cardholder and maintain evidence of the exempt sale, including the SCATE card
    number, list of products sold, and retail price in each exempt transaction.

7

See South Carolina Revenue Ruling #21-1 for more information regarding refunds.
4

11. Q. How long must a retailer maintain records of exempt sales?
A. A retailer must keep records for at least 4 years after the sales and use tax return was filed
or due to be filed, whichever is later.

12. Q. Is a retailer required to accept SCATE cards?
    A. Yes, if a farmer provides a SCATE card, the retailer should sell the eligible items to the
    farmer tax free, provided the transaction is of a type exempted by the SCATE card.
    The presentation of the SCATE card by a farmer will relieve the retailer of liability for sales
    tax and switch the liability to the purchaser, provided: 1) a SCATE card is presented, 2) the
    retailer did not fraudulently fail to collect and remit the tax; 3) the retailer did not solicit a
    farmer to participate in an unlawful claim that a sale was tax exempt; and 4) the retailer
    maintains proper records.
13. Q. Can a retailer check a farmer’s SCATE card status?
    A. A retailer is not required to do so. However, a retailer may check the status of a SCATE card
    by logging onto the South Carolina Department of Agriculture’s SCATE card website,
    www.scatecard.com, clicking on the “Check SCATE status” tab, and inputting the SCATE
    card number to check whether the farmer is an active SCATE participant.
14. Q. Since a retailer may be subject to a sales tax audit, what is a retailer’s record keeping
    responsibility?
    A. The Department may initiate a sales tax audit for any retailer. Since every business keeps
    records in its own manner, the Department does not issue a list of the types of records that
    must be maintained. However, all taxpayers are required to maintain “proper records” for a
    minimum of 4 years after the return was filed or due to be filed, whichever is later. South
    Carolina Regulation 117-200 provides additional information concerning recordkeeping.

5

SOUTH CAROLINA TAX EXEMPTIONS FOR FARMERS
Examples of Exempt and Taxable Items
I.
Machines, Parts, and Attachments
The sale of farm machinery that is used in planting, cultivating, or harvesting farm crops (including forest products)
for sale is exempt from South Carolina sale and use tax. The exemption also applies to replacement parts and
attachments. 8 S.C. Code § 12-36-2120(16) and South Carolina Regulation 117-301.5.
Planting includes all necessary steps in the preparation of the soil prior to, and including, the planting and sowing of
the seed.
Cultivation includes the loosening of the soil around growing plants, control of moisture content in the soil, and
weed and pest control.
Harvesting begins with the gathering of the crop and ends when the crop is placed in a temporary or permanent
storage area. Harvesting also includes the additional preparation for storage or sale of certain crops such as curing
of tobacco, grains, and peanuts and grading and packaging of peaches, cucumbers, tomatoes, etc.
The sale or purchase of farm machinery is not exempt if the machinery will be used for a purpose other than the
planting, cultivating, or harvesting of farm crops for sale in their original state of production or preparation for sale.
Additionally, the purchased farm machinery must be used substantially (not merely incidentally) in the planting,
cultivating, or harvesting of farm crops for sale in their original state of production or preparation for sale.
Examples of Exempt Items 9
 machinery used in constructing
 animal and motor drawn or operated
terraces, drainage and irrigation
implements such as plows, harrows,
ditches; dikes used to control the
hay rakes, mowers, cultivators,
water level in cultivated fields;
and planters
and land prior to cultivation of the
soil
 machinery used in planting,
cultivating, and harvesting timber
 machinery specifically designed
products
for irrigation purposes, including
 tobacco curers (not including flues
pumps, pipes, spigots, etc.
and furnaces)
 farm dairy tanks used in the
 a flatbed trailer or a stock trailer used
production and preservation of
for hauling farm crops (i.e., hay,
milk on dairy farms
corn, peaches)
 farm wagons
 animal and motor drawn or operated
 oil, grease, and lubricants 10
tobacco transplanters

8

 skidders used in logging
operations, when used either by
sawmills or contractor loggers

 machinery purchased by operators
of commercial fisheries and used
directly in fishing operations, such
as motor operated watercraft and
nets attached to booms or cranes
for lowering into the sea bed
 machinery purchased by
commercial crabbers and used
directly in crabbing operations,
such as motors, mechanical
capstans, and crab traps when such
traps are hoisted by capstans

Automobiles and trucks are not eligible for this exemption.
The listed items are exempt if used for agricultural business purposes.
10
Chemicals and oils, including, but not limited to, greases, lubricants, and coolants used in an exempt
farm machine that are essential to the functioning of the exempt machine are exempt fuels used in farm
machinery and farm tractors and are exempt from sales tax according to Proviso 109.18 in Act No. 84
of 2023. If that Proviso is not renewed, these products will no longer be considered exempt fuels used
in farm machinery and farm tractors and will not be exempt from sales tax.
9

6

 pasteurizing machines, cooling
machines, mechanical
separators; homogenizing
machines and bottling machines
used by dairies in the production
of milk for sale

Examples of Taxable Items
 automobiles and trucks

 farm hand tools (i.e., hoes,
pitchforks, and shovels)
 tobacco thermometers

 tires (except for those used for
automobiles and trucks)
 portable power saws for use in
planting, cultivating, or harvesting
farm crops. The term “farm crops”
includes forest products or products
of the forest.
 range waterers and feeders
(unless completely mechanized)
 egg baskets and stackers
 hand trucks and non-mechanized egg
carts

 flatbed trailers or stock trailers
 dollies
(not used for planting,
cultivating, or harvesting crops)
 brooding paper and guards
 milking machines
 nesting materials

11

 airplanes 11
 vehicle batteries (except for those
used for automobiles and trucks)
 various machines used in the
production of poultry products
are exempt from the tax 12
 ATVs/UTVs/Side-by-Sides 13
 hand-operated sprayers and powder
dusters
 mouse traps
 greenhouses
 tobacco transplanters (not animal
and motor drawn or operated)

See South Carolina Revenue Ruling #08-8.
See South Carolina Reg. 117-301.5.
13
ATVs/UTVs/Side-by-Sides are subject to the maximum sales and use tax pursuant to S.C. Code
§ 12-36-2110. See South Carolina Revenue Ruling #23-3.
12

7

II.
LIVESTOCK
The sale of domesticated animals customarily raised in South Carolina farms for use primarily as beasts of burden
or food is exempt from South Carolina sales and use tax. The sale of mammals raised for their pelts or furs is also
exempt. S.C. Code § 12-36-2120(4) and South Carolina Regulation 117-301.1. 14
Examples of Exempt Items 15

 horses

 sheep

 ostriches

 mules

 goats

 honey bees 16

 cattle

 rabbits

 chinchillas

 swine

 poultry

 dogs

 fowls (except baby chicks and
poults)

 fish (except those cultivated for
human consumption)

 minnows

 animals of a wild nature not
considered livestock

Examples of Taxable Items
 cats
 reptiles
 worms

14

All sales of livestock are exempt from sales and use tax, even if purchased for personal use.
Therefore, any purchaser can purchase livestock tax free without presenting a SCATE card at the time
of purchase. S.C. Code Ann. § 12-36-2120 (4) and S.C. Code Reg. § 117-301.1.
15
The listed items are exempt if used for agricultural business purposes.
16
See South Carolina Revenue Rulings #21-6 and #21-9.
8

III.
FEED
The sale of feed used in the production and maintenance of livestock is exempt from the South Carolina sales and
use tax. S.C. Code § 12-36-2120(5) and South Carolina Regulation 117-301.2. 17
Examples of Exempt Items 18
 cattle feed

 horse feed 19

 rabbit feed (used in the production  fish feed (used in the production
and maintenance of rabbits for
and maintenance of fry,
human consumption)
fingerlings, and fish)

 chinchilla feed

Examples of Taxable Items
 pet feed

 bait feed

 wild animal feed

17

All sales of feed are exempt from sales and use tax, even if purchased for personal use. Therefore,
any purchaser can purchase livestock feed tax free without presenting a SCATE card at the time of
purchase. S.C. Code Ann. § 12-36-2120 (5) and S.C. Code Reg. § 117-301.2.
18
The listed items are exempt if used for agricultural business purposes.
19
See South Carolina Revenue Ruling #99-1.
9

IV.

INSECTICIDES, CHEMICALS, FERTILIZERS, SOIL CONDITIONERS, SEEDS, AND
SEEDLINGS
Insecticides, chemicals, fertilizers, soil conditioners, seeds, seedlings, or nursery stock used solely in the production
for sale of farm, grove, vineyard, or garden products or in the cultivation of poultry or livestock for sale are exempt
from South Carolina sales and use tax. S.C. Code §§ 12-36-2120(6) and (28)(a), and South Carolina Regulation
117-301.3. 20
Examples of Exempt Items 21
 vegetable seeds 22

 explosives (chemicals)

 fruit seeds 23

 medicines (chemicals)

 vegetable plants 24

 bull semen

 fruit plants (e.g. strawberry plants, peach trees, and apple
trees) 25

 insecticides (chemicals), including washing powder
soap, etc., used by dairy operators at the dairy barn
in the production for sale of dairy products

Examples of Taxable Items

 liquid petroleum gas used for burning grass and weeds
around farm crops

20

Sales of seeds and plants intended to grow food (not birdseed or seeds to grow flowers) are exempt
as unprepared foods, pursuant to S.C. Code §§12-36-2120(75).
21
The listed items are exempt if used for agricultural business purposes.
22
See Couth Carolina Revenue Ruling #16-8.
23
Id.
24
Id.
25
Id. Fruit plants do not include ornamental trees or other plants.
10

V.
CONTAINERS AND LABELS
Containers and labels used in preparing agriculture, dairy, grove, or garden products for sale or in preparing
turpentine gum, gum spirits of turpentine, and gum resins for sale are exempt from the South Carolina sales and use
tax. S.C. Code § 12-36-2120(7) and South Carolina Regulation 117-301.4.
For the purposes of this exemption, “containers” means boxes, crates, bags, bagging, ties, barrels, and other
containers.
Additionally, wrapping paper, wrapping twine, paper bags, and containers used incident to the sale and delivery of
tangible personal property are exempt. S. C. Code § 12-36-2120(14).
Examples of Exempt Items 26
 bags sold to wholesale grain and feed dealers for use as
furnished containers of corn and oats

 bags sold to peanut hullers for use as furnished
containers of peanut kernels, hulls, and vines

 bags sold to cotton dealers or ginners for use as
furnished containers of cotton seed

 bags sold to nurserymen for use as furnished
containers of nursery stock

 bags sold to produce dealers for use as furnished
containers of potatoes, cabbage, etc.

Examples of Taxable Items

 tobacco twine used by farmers incident to
the curing of tobacco

26

The listed items are exempt if used for agricultural business purposes.
11

VI.
FUEL
Fuel used in farm machinery and farm tractors used in planting, cultivating, or harvesting farm crops and fuel used
to exclusively cure agricultural products are exempt from the South Carolina sales and use tax. S.C. Code § 12-362120, subsections (15) and (18) and South Carolina Regulation 117-301.6. This exemption also applies to fuel used
in curing grain and in grain elevators for storage or sale.
Examples of Exempt Items 27
 fuels used in farm machinery

 fuels used in commercial fishing vessels

 fuels used in farm tractors

 fuels used exclusively to cure agricultural products

 fuels used in non-exempt equipment

 fuels used in automobiles and trucks

Examples of Taxable Items

27

The listed items are exempt if used for agricultural business purposes.
12

VII.
ELECTRICITY AND GAS
Sales of electricity and natural and liquefied petroleum gas to farmers for use in the production of poultry, livestock,
swine, and milk are exempt from the South Carolina sales and use tax. S.C. Code § 12-36-2120(32) and South
Carolina Regulation 117-301.7.
Additionally, sales of electricity for irrigating farm crops are exempt from the tax. South Carolina Code § 12-362120(44) and South Carolina Regulation 117-301.7.
Examples of Exempt Items 28
 sales of electricity and natural and liquefied petroleum
gas to farmers for use in the production of livestock and
milk

 sales of electricity for irrigating farm crops

Examples of Taxable Items

 sales of electricity and gas to farmers for
other uses

28

The listed items are exempt if used for agricultural business purposes.
13

VIII.

BUILDING MATERIALS, SUPPLIES, FIXTURES, AND EQUIPMENT FOR
COMMERCIAL HOUSING OF POULTRY AND LIVESTOCK
Sales of building materials, supplies, fixtures, and equipment used in the construction, repair, or improvement for
the commercial housing of poultry or livestock, or that become part of a self-contained enclosure or structure
specifically designed, constructed, and used for the commercial housing of poultry or livestock are exempt from
the South Carolina sales and use tax. S.C. Code § 12-36-2120(45) and South Carolina Regulation 117-301.8.
Examples of Exempt Items 29
 wood chips for use on the floors of self-contained
enclosures or structures specifically designed,
constructed, and used for the commercial housing of
poultry 30

 watering tubs, feed troughs, and hay feeders placed
within a fenced-in area specifically set aside and used
for livestock or poultry, provided the livestock and
poultry within the enclosure are being raised or
maintained for commercial purposes 32

 fencing and fencing supplies when used to surround an
area on all sides in order to protect livestock or poultry
raised or maintained for commercial purposes (This
exemption is applicable when the fencing and fencing
supplies are used within a building such as a barn or a
chicken house or used to surround a field that is
specifically set aside and used for livestock or poultry
that is raised or maintained for commercial purposes.) 31

 pre-engineered buildings for the commercial housing
of poultry or livestock
 poultry/farm alarms

Examples of Taxable Items

 fencing and fencing supplies used to surround a field
where crops are grown

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
October 18
, 2023
Columbia, South Carolina

29

The listed items are exempt if used for agricultural business purposes.
See South Carolina Information Letter #95-1.
31
See South Carolina Revenue Ruling #95-11.
32
See South Carolina Revenue Ruling #95-11.
30

14