In South Carolina, do people 85 and older really pay less sales tax, and how do they actually get the lower rate at the register?

Plain-English summary

South Carolina law gives people 85 years of age or older a lower state sales and use tax rate on things they buy for their own personal use. The rate drops by one percentage point — from the general 6% to 5% — which is why the Department calls it the "1% exclusion" or "1% reduction." Revenue Ruling #25-9 updates the Department's guidance on how the break works and which purchases it covers.

There is no form to fill out and no advance registration. But the law requires all four of these at the moment of purchase [§ 12-36-940(C); §§ 12-36-2620, -2630, -2640]:

1. the individual who is 85 or older buys the item;
2. it is bought for that person's own personal use;
3. the buyer asks for the lower rate at the time of the sale; and
4. the buyer shows the retailer proof of age.

Two hard edges follow from that. First, it is not retroactive — if an eligible person forgets to ask, or can't show proof of age at checkout, they cannot later claim a refund of the 1%. Second, a purchase a family member or caretaker makes on the senior's behalf does not qualify; the 85+ individual has to be the buyer. The reduced rate does apply to phone, mail-order, and internet purchases, though the senior may need to contact each retailer to learn how that seller verifies the four requirements.

Crucially, the break is a state-tax reduction only. It does not lower any local sales and use taxes — neither the local taxes the Department collects for counties and cities, nor local hospitality taxes on prepared meals or local accommodations taxes charged directly by a city or county.

The ruling then walks through common purchases. A few that surprise people:

• Unprepared ("grocery") food is already exempt from the state sales tax for everyone (0%), though local tax can still apply. Prepared food/restaurant meals are taxable at 5% for the 85+ buyer.
• Prescription medicines are exempt for all ages; over-the-counter medicines are taxable at 5% for the 85+ buyer. Certain diabetic supplies bought under a physician's direction are exempt.
• Gifts don't qualify — buying something for someone else (or a business) isn't a "personal use" purchase, so the full 6% applies. Residential electricity is exempt for everyone.
• Accommodations (hotels, motels, short-term rentals under 90 days) are taxed at 7%, reduced to 6% for the 85+ guest; "additional guest charges" (room service, in-room movies, etc.) drop from 6% to 5%.
• Motor vehicles to be registered in South Carolina are not subject to sales/use tax at all — instead a 5% infrastructure maintenance fee (capped at $500) applies at the DMV, and there is no reduced version of that fee for people 85+. A short-term vehicle rental (90 days or fewer) does get the 5% senior rate.

Finally, retailers have a duty: they must post a sign at each entrance or register telling shoppers 85+ about the lower rate, and a retailer who fails to post it faces a penalty of up to $100 per month and, after a written warning, possible license revocation [§ 12-36-2646].

What this means for you

Shoppers 85 and older (and their families)

The savings are real but you have to claim them at the register, every time — the store won't apply the discount automatically, and there is no way to get the 1% back afterward. Carry proof of age and say you want the "1% reduction for individuals 85 and older" before you pay. Remember it's personal-use only: if your daughter runs to the store for you, that purchase pays the full rate, and gifts you buy for others don't qualify. The reduction is on the state portion only, so your receipt will still show any local tax in full.

Retailers and cashiers

You must post the required 85-and-older sign at each entrance or cash register; skipping it risks a penalty up to $100 for each month it's missing and, after a written warning, your retail license. Train staff to apply the 5% state rate (6% on accommodations, 5% on additional guest charges) only when the customer requests it and shows proof of age, and to keep the local tax portion unchanged. For phone/mail/internet orders, have a documented process for verifying age and the personal-use requirement.

Accountants and tax professionals

The mechanics live in §§ 12-36-2620/-2630/-2640 and § 12-36-940(C), and the "1% reduction" is simply the additional 1% imposed by § 12-36-1110 being lifted off the § 12-36-910(A) base rate. Watch the carve-outs: the reduction never touches local taxes, the infrastructure maintenance fee on vehicles (5%, no senior rate), or the 1% drycleaning environmental surcharge under § 44-56-450. Because the benefit is forfeited if not requested with proof of age at the point of sale, there's no refund posture to preserve — this is purely a point-of-sale compliance item.

Common questions

Q: My mother is 87. Does she automatically get the lower tax rate?
A: No. She (or the eligible buyer) must ask for the "1% reduction" and show proof of age at the time of purchase. It's not automatic and can't be claimed after the fact.

Q: I'm 85 and forgot to ask — can I get the 1% refunded later?
A: No. The lower state rate is only available if you request it and provide proof of age at the time of purchase.

Q: Can my caregiver buy things for me and still get my senior rate?
A: No. A purchase made by someone else — even a family member or caretaker buying for your use — does not qualify. The 85-or-older individual must be the purchaser.

Q: Does the reduction lower my city or county tax too?
A: No. It only reduces the state sales and use tax. Local taxes — including local hospitality tax on prepared meals and local accommodations taxes — are not reduced.

Q: Do I pay less tax on a new car because I'm over 85?
A: No special break there. Vehicles registered in South Carolina aren't subject to sales/use tax at all; they pay a 5% infrastructure maintenance fee (max $500) at the DMV, and there is no reduced fee for individuals 85 and older.

Citations and references

Statutes:

• S.C. Code Ann. §§ 12-36-2620, -2630, -2640 — 1% lower state sales & use tax rate for individuals 85 and older
• S.C. Code Ann. § 12-36-940(C) — retailer may collect the lower rate when the buyer requests it with proof of age
• S.C. Code Ann. § 12-36-910(A) and § 12-36-1110 — 6% state sales tax (5% base + additional 1%)
• S.C. Code Ann. § 12-36-920 — 7% sales tax on accommodations; 6% on additional guest charges
• S.C. Code Ann. § 12-36-2120(75) — exemption for unprepared food; § 12-36-2120(28) — prescription medicines and certain diabetic supplies
• S.C. Code Ann. § 12-36-2120(83) — motor vehicles subject to the infrastructure maintenance fee rather than sales/use tax
• S.C. Code Ann. § 12-36-2646 — retailer sign-posting requirement and penalty

The ruling also references Jack's Custom Cycles, Inc. v. S.C. Dep't of Revenue, 439 S.C. 35, 885 S.E.2d 433 (Ct. App. 2023) (on what counts as a "motor vehicle"), and cites SC Revenue Rulings #23-3, #25-2, and #11-3 in prose — described here, not linked, per this library's convention.

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR25-9.pdf

Original ruling text

STATE OF SOUTH CAROLINA

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

SC REVENUE RULING #25-9
SUBJECT:

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

EFFECTIVE DATE:

July 1, 2017

SUPERSEDES:

S.C. Revenue Ruling #18-10 and all previous documents and any oral
directives in conflict herewith

REFERENCES:

Chapter 36 of Title 12 (2014 & Supp. 2024)
S.C. Code Ann. Section 56-3-627 (Supp. 2024)

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
The purpose of this advisory opinion is to update guidance from the Department of Revenue (the
“Department”) on sales of certain items to individuals 85 years of age or older who are entitled to
the 1% state sales and use tax exclusion.
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. 1 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).
1

S.C. Code Ann. §§ 12-36-2620, -2630, and -2640.

1

This advisory opinion provides 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 85 years of age or older. It is not intended to address every issue an individual may
encounter.
This opinion is divided into the following parts:
1.
2.
3.
4.
5.

General Overview of Taxes Imposed on Purchases
Procedure to Request and Receive Lower Tax Rate
Applicability to Common Purchases
Retailer Requirements
Examples and Additional Guidance

PART 1 – GENERAL OVERVIEW OF TAXES IMPOSED ON PURCHASES
State Sales and Use Tax. South Carolina law imposes a 6% sales tax 2 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 3 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. 4
Sales Tax on Accommodations and Additional Guest Charges. South Carolina law imposes a
7% sales tax on charges for any rooms, lodgings, or sleeping accommodations for fewer than 90
days to the same person 5 and a 6% sales tax on “additional guest charges” added to the guest’s
room charge for certain specific amenities or services. 6
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 on local sales and use taxes is published in an Information Letter that can be found on
the Department’s website. In addition, some counties and municipalities administer and collect
S.C. Code Ann. § 12-36-910(A) imposes a 5% sales tax. S.C. Code § 12-36-1110 imposes an additional 1% sales
and use tax rate, beginning June 1, 2007.
3
S.C. Code Ann. § 12-36-1310(A) imposes a 5% use tax. S.C. Code § 12-36-1110 imposes an additional 1% sales
and use tax rate, beginning June 1, 2007.
4
S.C. Code Ann. § 12-36-60.
5
S.C. Code Ann. § 12-36-920(A). The 1% increase under S.C. Code Ann. § 12-36-1110 does not apply to the tax on
the rental of accommodations.
6
S.C. Code Ann. § 12-36-920(B). The 1% increase under S.C. Code Ann. § 12-36-1110 applies to the sales tax on
additional guest charges.
2

2

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.
“Rounding.” In calculating the tax due, retailers may round a fraction of more than one-half of a
cent to the next whole cent and a fraction of a cent of one-half or less must be eliminated. 7
For example, if the total amount due after tax is $23.875, the retailer may round the amount up to
$23.88. However, if the total amount due after tax is $23.874, the retailer may only collect $23.87.
“Maximum Tax.” Sales or leases of motor vehicles 8, boats and boat motors, and recreation
vehicles are subject to a 5% sales and use tax, but the tax may not exceed $500. 9 This maximum
tax does not apply to boat trailers under 2,500 that are privately owned and not for hire. 10 Sales
of items subject to the maximum tax are exempt from local sales and use taxes.
Casual Excise Tax. Boats and boat motors purchased from a non-retailer (typically an individual)
are subject to a “casual excise tax” (rather than a use tax) at a rate of 5% (not to exceed $500) for
the issuance of a title or proof of ownership. 11
PART 2 – 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. 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;
   b. the tangible personal property is purchased for the purchaser’s 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.

See S.C. Code Ann. § 12-36-940(C).
Jack’s Custom Cycles, Inc. v. S.C. Dep’t of Revenue, 439 S.C. 35, 47, 885 S.E.2d 433, 440 (Ct. App. 2023), reh’g
denied (Apr. 26, 2023), found “motor vehicle” includes any motorized, self-propelled, and wheeled vehicle that does
not run on rails. This includes all-terrain vehicles, utility vehicles, golf carts, and legend race cars. See also S.C.
Revenue Ruling #23-3.
9
S.C. Code Ann.§ 12-36-2110.
10
See S.C. Revenue Ruling #25-2. This advisory opinion provides 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 85 years of age or older. It is not intended to address every issue an individual may encounter.
11
S.C. Code Ann. § 12-36-1710.
7
8

3

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.
Note: When requesting the 1% exclusion, an individual 85 years of age or older may need to
contact each retailer (including phone, mail order, and internet retailers) to determine the
retailer’s process for verifying the requirements provided in Question 1 above.

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 the individual’s own use made
   by someone else, 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%
(However, an
infrastructure
maintenance fee
of 5%, not to
exceed $500
applies)
4%, not to
exceed $500

No

Casual Excise Tax on Maximum Tax
Items not Registered with the SCDMV
(e.g., boats, boat motors)
*These are the state tax rates as of the date this document was published.

No

8. 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 3 - APPLICABILITY TO COMMON PURCHASES
9. Q. If an individual 85 years of age or older purchases tangible personal property at retail for
   the individual’s 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 the individual’s 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 throughout 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; and
Communication services, such as cable or internet television.

Food Purchases

10. Q. If an individual 85 years of age or older purchases “unprepared food” at retail for the
    individual’s 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)12
    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);
and
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
See S.C. Code Ann. § 12-36-2120(75) and S.C. 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.
12

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 S.C. Regulation 117-337.2; and
Vitamins and medicines not sold by prescription.

11. 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 the individual’s 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 the individual’s 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
12. 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 the individual’s 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

13. Q. If an individual 85 years of age or older purchases at retail over-the-counter medicines
(e.g., aspirin) for the individual’s 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 the individual’s 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 the individual’s 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 the individual’s personal
    use, what tax rate is applicable to the purchase?
    A. An individual 85 years of age or older who purchases medical supplies for the individual’s
    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 Sections 12-36-2120(28), (38), (63), and (80)
    and S.C. 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?

8

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 the individual’s own
personal use.
Residential Electricity Purchases

17. Q. If an individual 85 years of age or older purchases electricity at retail for residential
    purposes for the individual’s 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.)
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 the individual’s personal use, what tax rate is applicable to the purchase?
    A. An individual 85 years of age or older who purchases communication services 13 at retail
    such as telephone services, cable television services, and satellite television, radio or
    emergency services for the individual’s 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 14 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; and
Database access transmission services (online information services), such as
charges to access an individual website (e.g., monthly charges to access a sports
website).

13
The gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the
voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or
means for the transmission of the voice or messages are subject to the state sales and use taxes. S.C. Code Ann. §§
12-36-910(B)(3) and 12-36-1310(B)(3).
14
Other charges and fees may apply that are not discussed in this document.

9

Laundry and Drycleaning Purchases 15

19. Q. If an individual 85 years of age or older purchases laundry and drycleaning services at retail
    for the individual’s 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 the individual’s personal use would pay a state sales and use tax rate of 5%
    (instead of the 6% rate applicable to all other persons), plus any applicable local sales and
    use tax.
    Note: Some drycleaning facilities must also charge a 1% environmental surcharge on
    charges for laundry and drycleaning services under Code Section 44-56-450. This
    surcharge paid by an individual 85 years of age and older is not eligible for the 1% sales
    and use tax rate reduction.
    Sleeping Accommodations (Hotels, Motels, Condominium Rentals)
20. Q. If an individual 85 years of age or older purchases at retail sleeping accommodations for
    the individual’s 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 16; 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 the individual’s 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
    the individual’s 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
    the individual’s personal use at a place that furnishes sleeping accommodations subject to

The gross proceeds accruing or proceeding from the business of providing or furnishing any laundering, dry
cleaning, dyeing, or pressing service are subject to the state sales tax. S.C. Code Ann. § 12-36-910(B)(1).
16
The gross proceeds from the rental or charges for any rooms, campground spaces, lodgings, or sleeping
accommodations are subject to the state sales tax. S.C. Code Ann. §12-36-920 and S.C. Regulation 117-307.
15

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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.
Motor Vehicle Purchases, Leases, and Rentals 17

22. Q. If a resident individual 85 years of age or older purchases, for the individual’s 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. 18 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 the individual’s
    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. 19 Instead, the lease is
    subject to an infrastructure maintenance fee upon the 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 the individual’s 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 the individual’s 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.

See S.C. Code Ann. § 12-36-2110 for guidance on trailers or semitrailers pulled by a truck tractor.
S.C. Code Ann. § 12-36-2120(83).
19
S.C. Code Ann. § 12-36-2120(83).
17
18

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Note: For additional information regarding the taxation of motor vehicles to residents and
nonresidents, see S.C. Information Letter #25-5. Questions regarding the infrastructure
maintenance fee remitted to the South Carolina Department of Motor Vehicles should be e-mailed
to [email protected].
PART 4 – 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. 20 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. 21 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 5 – 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
December 15
, 2025
Columbia, South Carolina
20
21

S.C. Code § 12-36-2646(A).
S.C. Code § 12-36-2646(B).

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

Type of Purchase

Examples

General Items
(Except as noted
below)
Unprepared Food

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

6%

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

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

additional guest charges
Cars, motorcycles

6%
0%
(Infrastructure
maintenance
fee of 5%, but
no more than
$500)
5%, but not
more than
$500

5%
0%
(Infrastructure
maintenance
fee of 5%, but
no more than
$500)
4%, but not
more than
$500

Applicable
0%

Residential
Electricity and
Gas
Communications
Services
Drycleaning
Accommodations
Charges
Motor Vehicle
(Purchase or
Lease) to be
Registered in SC
with DMV
Maximum Sales
Tax Items

State Sales
and Use Rate

Boats, boat motors

Local Sales
and Use
Tax
Applicable

0%

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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