What can a South Carolina farmer buy without paying sales tax, and how does the SCATE card work?

Plain-English summary

South Carolina gives farmers a broad set of sales-and-use-tax exemptions, and Revenue Ruling #25-6 is the Department's updated, plain-language guide to them — including a long list of specific exempt and taxable items. It supersedes RR #23-4.

The SCATE card is the key. Since the South Carolina Department of Agriculture began issuing the South Carolina Agriculture Tax Exemption ("SCATE") card (it started in January 2022 and replaced the old Form ST-8F on July 1, 2022), a farmer generally buys eligible items free of the state sales and use tax and free of any local sales and use taxes the Department collects for local jurisdictions — but only by presenting a valid SCATE card at the first purchase with each retailer. To get a SCATE card, a farmer must participate in the agriculture industry for business purposes; hobby farmers do not qualify and generally can't claim the exemptions.

The general rule is use-based: an item is exempt when used in the agricultural industry for business purposes. The ruling's own example: a tractor implement used to cultivate a field growing vegetables for sale for human consumption is exempt, but the same implement used to cultivate a food plot for wild game is not exempt even if the buyer holds a SCATE card.

The ruling organizes the exemptions into eight categories, each with example lists:

1. Machines, parts, and attachments — farm machinery used in planting, cultivating, or harvesting crops for sale, plus replacement parts and attachments [§ 12-36-2120(16)]. It must be used substantially, not merely incidentally, in those activities (per RR #99-3 and Hercules Contractors). Automobiles and trucks are never eligible. (Exempt examples: irrigation pumps/pipes, plows, harrows, tobacco curers, skidders, commercial-fishing gear. Taxable examples: farm hand tools, horse trailers, ATVs/UTVs/side-by-sides, golf carts, greenhouses.)
2. Livestock — domesticated animals customarily raised as beasts of burden or food, and mammals raised for pelts/furs [§ 12-36-2120(4)]. This one is exempt for everyone, even for personal use, with no SCATE card. (Exempt: horses, cattle, swine, poultry, honey bees. Taxable: dogs, cats, reptiles, worms.)
3. Feed used in producing/maintaining livestock [§ 12-36-2120(5)] — also exempt for everyone, no SCATE card. (Taxable: pet feed, bait feed, wild-animal feed.)
4. Insecticides, chemicals, fertilizers, soil conditioners, seeds, and seedlings used solely in producing crops/poultry/livestock for sale [§ 12-36-2120(6)].
5. Containers and labels used to prepare agricultural products for sale [§ 12-36-2120(7)].
6. Fuel used in farm machinery/tractors for planting, cultivating, or harvesting, and to cure agricultural products [§ 12-36-2120(15), (18)].
7. Electricity and gas sold to farmers for producing poultry, livestock, swine, and milk, and electricity for irrigating crops [§ 12-36-2120(32), (44)].
8. Building materials, supplies, fixtures, and equipment for the commercial housing of poultry or livestock.

Some exemptions stand apart from the SCATE/business-use rule and apply to anyone: all livestock and all livestock feed (above), prescription medicine [§ 12-36-2120(28)(a)], farm/grove/garden products sold in their original state by the producer or the producer's immediate family [§ 12-36-2120(23)], and seeds and plants intended to grow food (not birdseed or flower seeds), which are exempt as unprepared food [§ 12-36-2120(75)] — though that food exemption is state-only, so local sales tax can still apply.

Two practical mechanics worth flagging. First, if a retailer wrongly charges sales tax on an exempt item, the farmer should ask the retailer for a refund; if refused, the farmer must obtain a written assignment of the right to the refund (Form ST-16) from the retailer and then file with the Department [§ 12-60-470; see RR #21-1]. Second, one fuel/chemical exemption is temporary: chemicals and oils (greases, lubricants, coolants) essential to an exempt farm machine are treated as exempt fuels under Proviso 109.16 in Act No. 69 of 2025, and if that proviso is not renewed, those products stop being exempt.

What this means for you

Farmers

Get and carry your SCATE card, and present it at your first purchase with each new retailer — after that, later purchases on the same valid card are covered at that seller. Remember the exemption is generally for agricultural business use: buying the same equipment for a hobby, personal, or wild-game use won't qualify. A handful of things — livestock, livestock feed, prescription medicine, and food-crop seeds/plants — are exempt for everyone without a card. Watch the machinery "substantial use" test (a dual-use trailer is exempt only if used substantially in planting/cultivating/harvesting for sale) and the rule that trucks and automobiles are never exempt. If a store charges you tax on an exempt item, you can pursue a refund, but you'll need the retailer's signed Form ST-16 assignment first.

Agricultural retailers and equipment dealers

When a farmer presents a valid SCATE card, sell the eligible items tax-free and record the SCATE card number and details of the exempt sale; keep those records at least four years. Proper handling shifts the tax liability to the purchaser (provided the card was presented, you didn't fraudulently fail to collect, you didn't solicit an unlawful exemption claim, and you kept proper records). You aren't required to check card status, but you can verify it at scatecard.com. For mixed baskets, only the eligible items are tax-free — not the whole sale.

Accountants and tax professionals

The exemptions live in the many subsections of § 12-36-2120 and Regulation 117-301, with recordkeeping in Regulation 117-200. Key traps: distinguish the card-required, business-use exemptions from the universal ones (livestock/feed/prescription medicine/food seeds); apply the substantial-use standard to machinery (RR #99-3, Hercules Contractors); treat ATVs/UTVs/side-by-sides as taxable and subject to the maximum-tax rules (RR #23-3); and diary the Proviso 109.16 fuel/chemical exemption, which sunsets unless renewed. The food-seed exemption is state-only, so local tax can still attach.

Common questions

Q: Do I need a SCATE card to buy farm supplies tax-free?
A: For most agricultural exemptions, yes — you must present a valid SCATE card at your first purchase with each retailer, and you must be farming for business purposes. A few exemptions (all livestock, all livestock feed, prescription medicine, and seeds/plants grown for food) apply without a card.

Q: Is my new farm truck exempt because I have a SCATE card?
A: No. Automobiles and trucks are never eligible for the farm-machinery exemption, regardless of the SCATE card.

Q: I'm a hobby farmer. Can I claim these exemptions?
A: Generally no. The agricultural exemptions and the SCATE card require participating in the agriculture industry for business purposes. (The universal exemptions like livestock and prescription medicine still apply to anyone.)

Q: A store charged me sales tax on something exempt. How do I get it back? A: Ask the retailer for a refund first. If they refuse, get a written assignment of the right to the refund (Form ST-16) from the retailer, then file a refund claim with the Department under § 12-60-470.

Q: Are the fuel/chemical exemptions permanent?
A: Not all of them. Chemicals and oils essential to an exempt farm machine are exempt under Proviso 109.16 of Act No. 69 of 2025, which must be renewed to stay in effect.

Citations and references

Statutes:

• S.C. Code Ann. § 12-36-2120 — agricultural sales & use tax exemptions, including (4) livestock, (5) feed, (6) chemicals/fertilizers/seeds, (7) containers/labels, (15) & (18) fuel, (16) machinery/parts, (23) producer's own products, (28)(a) prescription medicine, (32) & (44) electricity/gas, (75) food seeds/plants
• S.C. Code Ann. § 12-60-470 — refund procedure; written assignment of the right to a refund (Form ST-16)

Regulations:

• S.C. Regulation 117-301 — agricultural exemptions (117-301.1 livestock, .2 feed, .5 machinery, etc.)
• S.C. Regulation 117-200 — recordkeeping

Discussed in prose (not linked): RR #99-3 and Hercules Contractors and Engineers, Inc. v. S.C. Tax Commission, 280 S.C. 426, 313 S.E.2d 300 (1984) (substantial-use standard); RR #23-3 (ATVs/UTVs and the maximum tax); RR #16-8 (food seeds/plants); RR #21-1 (refunds). The exempt/taxable item lists in the original text are non-exhaustive examples.

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR25-6.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 25-6 (Revised)

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

EFFECTIVE DATE: November 20, 2025!

SUPERSEDES: SC Revenue Ruling #23-4 and all previous documents and any oral directives in conflict with this ruling

REFERENCES: S.C. Code Ann. Section 12-36-2120 (2014)
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 the state sales and use tax and free of any local sales and use taxes collected by the South Carolina Department of Revenue on behalf of local jurisdictions.” Generally, for an item to be exempt from the sales tax, the farmer must use the item in the

' The South Carolina Department of Agriculture began issuing SCATE cards in January 2022 and replaced the South Carolina Department of Revenue issued Form ST-8F on July 1, 2022.

? In this document, the term “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.

agricultural industry for business purposes.’ 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.* 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 update the guidance provided in South Carolina Revenue Ruling #23-4 relating to the use of the SCATE card as well as the common sales tax 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 sales tax 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 Generally, 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. For certain exemptions, participation in the agricultural industry for business purposes is not necessary. These exemptions will be specifically noted in this document.

‘ 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. See South Carolina Revenue Ruling #99-3.

> This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE
card at the time of purchase necessary. All sales of livestock are exempt from sales tax, even if purchased for personal use. S.C. Code § 12-36-2120(4) and S.C. Code Regs. 117-301.1.

° This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All sales of livestock feed are exempt from sales tax, even if purchased for personal use. S.C. Code § 12-36-2120(5) and S.C. Code Regs. 117-301.2.

7 Medicine sold by prescription is exempt, pursuant to S.C. Code §12-36-2120(28)(a). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

8 Sales of farm, grove, vineyard, and garden products, if sold in the original state of production or preparation for sale, when sold by the producer or by members of the producer’s immediate family are exempt, pursuant to S.C. Code §12-36-2120(23). Additionally, 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). These exemptions are not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

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. Retail sales of tangible personal property and taxable services to farmers are subject to sales or use tax. Some sales, which are described in the attached charts, are specifically exempted under South Carolina law. Broadly, tax 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.” 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.!°

Generally, hobby farmers who do not participate in the agriculture industry for business purposes are not eligible for the agriculture sales tax exemptions. !!

° 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 §§ 12-36-2120 (4) and (5) and S.C. Code Regs. 117- 301.1 and 117-301.2.

Medicine sold by prescription is exempt from sales and use tax, pursuant to S.C. Code §12-36- 2120(28)(a). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

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 § 12-36-2120 (75) and S.C. Code Regs. 117-337.1(A)(2). See South Carolina Revenue Ruling #16-8.

'0 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.

'l For certain exemptions, participation in the agricultural industry for business purposes is not necessary; nor the presentation of a SCATE card at the time of purchase. These exemptions will be specifically noted in this document.

a)

a)

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a)

8. Q.

Who qualifies for a SCATE card?
Farmers who participate in the agriculture industry for business purposes are eligible to receive a SCATE card.

Do all animal breeders qualify for a SCATE card?

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 do not qualify for the SCATE card.

How does a farmer apply for a SCATE card?

The South Carolina Department of Agriculture issues SCATE cards. Farmers may submit applications through an online portal at scatecard.com. The South Carolina Department of Agriculture provides additional information at the following link: https://agriculture.sc.gow/faq/scate/.

How are eligible agriculture items purchased sales tax free pursuant to an agriculture exemption?

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.

What if a retailer charges sales tax on an item that the farmer believes is exempt?

If a farmer believes that a retailer erroneously charged sales tax, the 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 this assignment, the farmer can then file a refund request, and the Department will evaluate whether the imposition of sales tax was

proper. !3

GENERAL QUESTIONS: RETAILERS

Is a farmer required to present a SCATE card at the time of purchase for the sale to be tax free?

'2 For certain exemptions, participation in the agricultural industry for business purposes is not necessary, nor is the presentation of a SCATE card at the time of purchase. These exemptions will be specifically noted in this document.

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

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, the 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 non-
   eligible items?
   A. No, only eligible agriculture items may be purchased tax free.

10.Q. What information must the retailer collect when a SCATE card is required for an exempt sale?

A. When making an exempt sale that requires the purchased item to be used in the agricultural industry for business purposes, the presentation of a valid SCATE card is necessary for the purchase to be made tax free. The retailer must verify the identity of the SCATE cardholder and that the SCATE card is not expired. The retailer must maintain evidence of the exempt sale, including the SCATE card number, list of products sold, and retail price in each transaction. South Carolina Regulation 117-200 provides information concerning recordkeeping.

11.Q. Are there agriculture-related items that do not require a SCATE card to be exempt from sales tax, and what information must the retailer maintain for those purchases?

A. Yes, for example, livestock and livestock feed may be purchased exempt from sales tax regardless of use. The exemption for livestock and livestock feed is not limited to agriculture business purposes, nor is the presentation of a SCATE card at the time of purchase required. All sales of livestock and livestock feed are exempt from sales tax, even if purchased for personal use. S.C. Code § 12-36-2120(4) & (5); South Carolina Regulation 117-301.1 & 117- 301.2.

When livestock and livestock feed are purchased, a retailer must maintain proper records of the sale including invoice date, product description, quantity purchased, price, amount of tax, and indication of tax status. South Carolina Regulation 117-200 provides information concerning recordkeeping.

12.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.

13.Q. Isa 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.

'4 For certain exemptions, participation in the agricultural industry for business purposes is not necessary, nor is the presentation of a SCATE card at the time of purchase. These exemptions will be specifically noted in this document.

14.Q.

15.Q.

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.

Can a retailer check a farmer’s SCATE card status?

A retailer is not required to do so. However, the 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.

Since a retailer may be subject to a sales tax audit, what is a retailer’s record keeping responsibility?

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.

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. '° S.C. Code § 12-36-2120(16) and S.C. Code Regs. 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!”

• machinery used in constructing
  terraces, drainage and irrigation
  ditches; dikes used to control the
  water level in cultivated fields;
  and land prior to cultivation of the
  soil

• machinery specifically designed
  for irrigation purposes, including
  pumps, pipes, spigots, etc.

• farm dairy tanks used in the
  production and preservation of
  milk on dairy farms

• animal and motor drawn or operated
  implements such as plows, harrows,
  hay rakes, mowers, cultivators,
  and planters

• machinery used in planting,
  cultivating, and harvesting timber
  products

• tobacco curers (not including flues
  and furnaces)

• tires (except for those used for
  automobiles and trucks)

• 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

• a flatbed trailer or a stock trailer
  used for hauling farm crops (i.e.,
  hay, corn, peaches)

'S Automobiles and trucks are not eligible for this exemption.
'6 See South Carolina Revenue Ruling #99-3 (stating that, “in accordance with the South Carolina

Supreme Court in Hercules Contractors and Engineers, Inc. v. South Carolina Tax Commission, 280 S.C. 426, 313 S.E. 2d 300 (1984), a machine must be substantially used for the exempt purpose in order to qualify for the exemption. As such, if a flatbed trailer or a stock trailer is used for both exempt and nonexempt purposes, then the sale or purchase of the trailer is exempt from the sales and use tax if it is used substantially (not merely incidentally) in the ‘planting, cultivating, or harvesting’ of farm crops (i.e., hay, corn, peaches) for sale in their ‘original state of production or preparation for sale.’”’) '7 The listed items are exempt if used for agricultural business purposes.

• farm wagons

• oil, grease, and lubricants !®

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

• animal and motor drawn or
  operated tobacco transplanters

• 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

• portable power saws for use in
  planting, cultivating, or harvesting
  farm crops (the term “farm crops”
  includes forest products or products
  of the forest)

• vehicle batteries (except for those
  used for automobiles and trucks)

• various machines used in the
  production of poultry and poultry
  products for sale when
  incorporated into and made a part
  of an automated system!”

• airplanes”

Examples of Taxable Items

• automobiles and trucks
  (including replacement parts and
  accessories)

• farm hand tools (i.e., hoes,
  pitchforks, and shovels)

• tobacco thermometers

• flatbed trailers or stock trailers
  (not used for planting,

cultivating, or harvesting crops)

• horse trailers

• milking machines

• range waterers and feeders
  (unless completely mechanized)

• egg baskets and stackers

• hand trucks and non-mechanized egg
  carts

• dollies

• brooding paper and guards

• nesting materials

• freezers

• ATVs/UTVs/Side-by-Sides?!

• golf carts

• hand-operated sprayers and powder
  dusters

• mouse traps

• greenhouses

• tobacco transplanters (not animal
  and motor drawn or operated)

• washing machines and dryers

'8 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 109.16 in Act No. 69 of 2025. If the 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 See S.C. Code Regs. 117-301.5.

?0 See South Carolina Revenue Ruling #08-8.
?1 ATVs/UTVs/Side-by-Sides are subject to the maximum sales and use tax provisions, pursuant to

S.C. Code § 12-36-2110. See South Carolina Revenue Ruling #23-3.

I. 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 S.C. Code Regs. 117-301.1.

This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All sales of livestock are exempt from sales tax, even if purchased for personal use.

Examples of Exempt Items

• horses + sheep + ostriches
• mules + goats + honey bees”
• cattle + rabbits + chinchillas
• swine + poultry
  Examples of Taxable Items
• dogs + fowls (except baby chicks and + fish (except those cultivated for
  poults) human consumption)
• cats
• minnows + animals of a wild nature not
• reptiles considered livestock
• worms

?2 See South Carolina Revenue Rulings #21-6 and #21-9.

UL. 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 S.C. Code Regs. 117-301.2.

This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All sales of livestock feed are exempt from sales tax, even if purchased for personal use.

Examples of Exempt Items

• cattle feed

• horse feed?3

• rabbit feed (used in the production
  and maintenance of rabbits for
  human consumption)

• fish feed (used in the production
  and maintenance of fry,
  fingerlings, and fish)

• chinchilla feed + hay + minerals

• pig feed

Examples of Taxable Items

• pet feed | + bait feed | + wild animal feed

°3 See South Carolina Private Letter Ruling #99-1.

10

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 S.C. Code Regs. 117-301.3.

Sales of farm, grove, vineyard, and garden products, if sold in the original state of production or preparation for sale, when sold by the producer or by members of the producer’s immediate family are exempt, pursuant to S.C. Code § 12-36-2120(23). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

Medicine sold by prescription is exempt, pursuant to S.C. Code §12-36-2120(28)(a). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

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). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

Examples of Exempt Items

• vegetable seeds™ + explosives (chemicals)*°
• fruit seeds + medicines (chemicals)!
• vegetable plants”° + bull semen”

*4 Sales of farm, grove, vineyard, and garden products, if sold in the original state of production or preparation for sale, when sold by the producer or by members of the producer’s immediate family are exempt, pursuant to S.C. Code §12-36-2120(23).

Additionally, 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). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use. See South Carolina Revenue Ruling #16-8.

°> Td.

° Td.

3° Exempt if used for agricultural business purposes.

3! The exemption for chemicals, including medicine, is restricted to the use of the item for agricultural business purposes.

However, medicine sold by prescription is exempt pursuant to S.C. Code § 12-36-2120(28)(a) and is not restricted to agricultural business purposes. The presentation of a SCATE card at the time of purchase is unnecessary to purchase tax free medicine sold by prescription. See South Carolina Revenue Ruling #11-3 for more information concerning the exemption for medicine sold by prescription.

3? Exempt if used for agricultural business purposes.

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• fruit plants (e.g. strawberry plants, peach trees, and apple | # top soil, mulch, or sand (if used as a soil

trees)?’ conditioner) **

• insecticides (chemicals), including washing powder
• flower seeds”® soap, etc., used by dairy operators at the dairy barn

in the production for sale of dairy products**

• dewormers”’

Examples of Taxable Items

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

27 Td. Fruit plants do not include ornamental trees or other plants. See South Carolina Revenue Ruling
#16-8.

Additionally, sales of flower seeds used solely in the production for sale of farm, grove, vineyard, or garden products are exempt, pursuant to S.C. Code §12-36-2120(6).

8 Sales of flower seeds used solely in the production for sale of farm, grove, vineyard, or garden products are exempt, pursuant to S.C. Code §12-36-2120(6).

°° Exempt if used for agricultural business purposes. S.C. Code § 12-36-2120(6).

Additionally, medicine sold by prescription is exempt, pursuant to S.C. Code §12-36-2120(28)(a). This exemption is not limited to agricultural business purposes, nor is the presentation of a SCATE card at the time of purchase necessary. All such sales are exempt from sales tax, even if purchased for personal use.

33 Exempt if used for agricultural business purposes.
34
Id.

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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 S.C. Code Regs. 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**

• bags sold to wholesale grain and feed dealers for use as + bags sold to peanut hullers for use as furnished
  furnished containers of corn and oats containers of peanut kernels, hulls, and vines

• bags sold to cotton dealers or ginners for use as

• bags sold to nurserymen for use as furnished
  furnished containers of cotton seed

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

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

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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-

36-2120(15) and (18) and S.C. Code Regs. 117-301.6. This exemption also applies to fuel used in curing grain and in grain elevators for storage or sale.

• 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

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

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VIL. 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 S.C. Code Regs. 117-301.7.

Additionally, sales of electricity for irrigating farm crops are exempt from the tax. South Carolina Code § 12-36- 2120(44) and S.C. Code Regs. 117-301.7.

Examples of Exempt Items”

• sales of electricity and natural and liquefied petroleum + sales of electricity for irrigating farm crops
  gas to farmers for use in the production of livestock and
  milk

Examples of Taxable Items

• sales of electricity and gas to farmers for
  other uses

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

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Sales of building materials, supplies, fixtures, and equipment used in the construction, repair, or Pmprovement 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 pons ¢ of poultry or livestock are exempt from

: egs. | 117- 301. 8.

• wood ates of Exempt Ite the floors of ES Sid + watering fibs, feed Tork and hay feeders placed
  enclosures or structures specifically designed, within a fenced-in area specifically set aside and used constructed, and used for the commercial housing of for livestock or poultry, provided the livestock and poultry? poultry within the enclosure are being raised or

maintained for commercial purposes*!

• bedding when used in self-contained

enclosures or structures specifically designed, + pre-engineered buildings for the commercial housing constructed, and used for the commercial housing of of poultry or livestock poultry and livestock

• poultry/farm alarms

• fencing and fencing supplies when used to surround an
  area on all sides in order to protect livestock or poultry + solar material/products raised or maintained for commercial purposes (this

exemption is applicable when the fencing and fencing + siding when used for self-contained

supplies are used within a building such as a barn or a enclosures or structures specifically designed, chicken house or used to surround a field that is constructed, and used for the commercial housing of specifically set aside and used for livestock or poultry poultry and livestock

etal is pool or r maintained for Cuilnor he

) + fencing arrerene supplies ised o SarOuTe a field 1+ gravel/rock for farm roads

where crops are grown

SOUTH CAROLINA DEPARTMENT OF REVENUE

W. Hartley Powell, Diréctor

, 2025
Columbia, South Carolina

38 The listed items are exempt if used for agricultural business purposes. 39 See South Carolina Information Letter #95-1.

40 See South Carolina Revenue Ruling #95-11.

“| Td.

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