How did South Carolina's original 1% county local-option sales and use tax apply to retailer sourcing, exemptions, contracts, utilities, and credits?

Plain-English summary

South Carolina Revenue Ruling 90-11 was the Commission's original 36-question guide to the 1% county local-option sales and use tax created in 1990.

The tax funded property-tax credits in participating counties. Counties approving the November 1990 referendum could begin imposing it July 1, 1991, while the ruling itself stated an effective date of January 1, 1991.

For ordinary in-state retailers, the historical guide generally sourced sales to the county and municipality of the business location that received the order, even if goods were delivered somewhere else. Use-tax transactions and nonresident-retailer sales were generally reported where the property was first stored, used, or consumed or where the customer was located.

The guide also addressed temporary sellers, outside salespeople, direct-pay certificates, construction contracts, vending machines, utilities, monthly billing, leases, accommodations, credits for other-state tax, filing discounts, penalties, and the property-tax-credit program.

Historical sourcing rules

Business location

A business location was a permanent branch, establishment, or agency that regularly received orders producing taxable sales. Stores, warehouses, mail-order houses, sales offices, and other staffed order locations qualified; a post-office box or mail drop did not.

An in-state retailer reported sales by the county and municipality of the business location receiving the order, regardless of delivery destination. Multiple-location retailers had to maintain records showing which sales belonged to each location.

Catalog, mail, fax, and telephone orders followed the same rule when received at an in-state location. If an out-of-state location received the order, reporting followed the customer's location.

Temporary sellers and locations

Artists, craftspeople, transient retailers, and sales from temporary locations reported by the county and municipality where each sale occurred. A retailer with both permanent and temporary locations separated the two methods.

Withdrawals and nonresident retailers

Wholesale inventory withdrawn, used, or consumed by the purchaser was reported where first withdrawn, used, or consumed.

Nonresident retailers reported by the South Carolina county or municipality where the customer stored, used, or consumed the property. A purchaser buying from a nonresident seller not authorized to collect use tax followed the same first-use location rule.

Outside salespeople

Orders taken by outside salespeople were sourced to the in-state business location receiving the orders. If the salesperson delivered goods while taking the order, the sale was reported where the salesperson turned in invoices, route books, or other records. A retailer with no South Carolina business location reported by customer location.

Direct-pay and limited certificates

A direct-pay certificate allowed purchases without tax at checkout, with the holder paying tax when property was withdrawn, used, or consumed. The 1% tax was reported where that first taxable event occurred.

Moving inventory from one location to another without withdrawing it for use or consumption did not trigger tax.

A limited certificate applied only to items actually exempt under § 12-36-2120. If a nonexempt item was incorrectly bought with it, the holder remained liable. Taxable sales were sourced to the seller's business location, while taxable use was sourced to the purchaser's first storage, use, or consumption.

Transactions excluded from the 1% tax

The ruling excluded:

• items subject to a statutory maximum tax, including the listed aircraft, vehicles, boats, certain construction equipment, mobile homes, and qualifying religious-organization purchases;
• transactions subject to the casual excise tax; and
• transactions exempt or excluded from the 5% state sales or use tax.

Construction and manufacturer-contractors

A construction contract or qualifying written bid predating a county's imposition date could protect later-delivered property if the statutory conditions were met and a verified contract copy was filed within six months after imposition.

For nonexempt purchases from an in-state supplier, the 1% sales tax followed the supplier's business location—not the delivery county. For purchases from an out-of-state supplier, the 1% use tax followed where the contractor first stored, used, or consumed the property.

A manufacturer using its own tangible property as building materials reported by the construction-site county and municipality.

Vending, utilities, billing, leases, and accommodations

The vending-machine rules separated ordinary goods from cigarettes and closed-container soft drinks. For the latter, the vending operator reported the retail sale by machine location. Other goods could be taxed when the operator purchased them, with sourcing depending on the supplier or first storage/use location.

Utilities reported where customers consumed the product or service. The ruling defined utilities to include electric, gas, telephone, cable, and other communications businesses delivering through electronic transmissions or pipelines, plus public water sellers whose sales were exempt from the state tax.

Monthly billers began with the first billing period starting on or after the county's imposition date. A lease signed earlier was still subject to the 1% tax on payments made after imposition. Accommodations were taxable and reported separately by the county or municipality of the rental units.

Credit for tax paid to another state

The ruling allowed credit against South Carolina use tax for state and local sales or use tax paid elsewhere.

Its example assumed a 6% combined South Carolina rate in a participating county. A $1,000 Georgia purchase with 5% tax already paid left 1%, or $10, due in South Carolina. The guide allocated $8.30 to the state and $1.70 to the county.

If other-state tax exceeded 6%, no South Carolina state or local use tax was due under the stated rule. In a county without the 1% tax, credit applied against the 5% state use tax up to the other-state amount.

Returns, discounts, penalties, and interest

Retailers did not have to separately state the 5% state tax and 1% local tax to customers.

The 1% tax was excluded when deciding whether estimated payments were required, but it was included when determining eligibility for quarterly filing.

Timely-filing discounts applied to combined state and local tax: 3% when total return liability was under $100 and 2% at $100 or more, with a $10,000 state-plus-local fiscal-year cap per taxpayer.

Chapter 54 penalties and interest applied, but the guide calculated them separately for the state and local liabilities.

Property-tax credit provisions

The $20,000 homestead-exemption amount was excluded from taxable property when computing the property-tax credit. Agricultural real property used its fair market value for agricultural purposes.

Revenue allocations changed over the program's early years. A county imposing the tax later used the percentages in effect for its actual imposition year, not the original 63%/37% split. The ruling's 1998 example used 71% for the Property Tax Credit Fund and 29% for the County/Municipal Revenue Fund.

For later referendums, a county generally delivered its resolution within ten days for imposition at the next quarter. To delay to a later quarter, it delivered the resolution at least 45 days before that quarter began.

What this means for you

Historical-period research

Identify the seller's order-receiving location, the property's first use location, the county's imposition date, and whether a special industry rule applied. Those details controlled the 1990 guide.

Current businesses

Do not use RR 90-11 as a current sourcing manual. South Carolina's local tax structure, rates, exemptions, filing systems, and sourcing rules may have changed substantially.

Accountants and tax professionals

For an old audit period, read the relevant question for the transaction type rather than applying the general business-location rule to contractors, vending, utilities, accommodations, or direct-pay purchases.

Common questions

Q: Did delivery destination control an ordinary in-state retailer's sales-tax reporting?

A: Not under the general 1990 rule. The order-receiving business location controlled.

Q: Did an inventory transfer trigger direct-pay tax?

A: No, not until the property was withdrawn, used, or consumed.

Q: Did state exemptions also apply to the 1% local tax?

A: Yes under the ruling, along with maximum-tax items and casual-excise transactions.

Q: Were post-imposition lease payments taxable under an older lease?

A: Yes. Payments made after the county's imposition date were subject to the 1% tax.

Q: Did the 1% tax count for quarterly-filing eligibility?

A: Yes, although it was excluded from the estimated-tax determination.

Citations and references

• S.C. Code Ann. §§ 4-10-10 et seq. — historical local-option sales and use tax
• S.C. Code Ann. § 12-36-110 — historical retail sale and withdrawal rules discussed
• S.C. Code Ann. § 12-36-2120 — historical exemptions discussed
• S.C. Code Ann. § 12-36-2510 — historical direct-pay certificate
• S.C. Code Ann. §§ 12-36-2600 and 12-36-2610 — historical estimated-tax and discount rules
• S.C. Code Ann. § 12-37-250 and § 12-43-220 — historical property-tax rules discussed

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR90-11.pdf

Original ruling text

SC REVENUE RULING #90-11

SUBJECT:

Local Option Sales & Use Tax
(Sales, Use & Property)

TAX MANAGER:

Jerry Knight

EFFECTIVE DATE:

January 1, 1991

SUPERSEDES:

All previous documents and any oral directives in conflict herewith.

REFERENCE:

S.C. Code Ann. Section 4-10-10, et. seq.
(Effective February, 1990)

AUTHORITY:

S.C. Code Ann. Section 12-3-170 (1976)
SC Revenue Procedure #87-3

SCOPE:

A Revenue Ruling is the Commission's official interpretation of how tax
law is to be applied to a specific set of facts. A Revenue Ruling is
public information and remains a permanent document until superseded
by a Regulation or is rescinded by a subsequent Revenue Ruling.

FACTS:
Effective February 2, 1990, the Code of Laws of South Carolina was amended by adding
Chapter 10 to Title 4, which allows the counties to levy a one percent (1%) local sales and use
tax to be used "to provide a credit against the property tax liability of taxpayers in the count[ies]
and municipalit[ies]". A referendum was held on November 6, 1990 and, in those counties
which approved the tax, can go into effect July 1, 1991.
For the purposes of this document, the local option sales tax will be referred to as the "1% sales
tax" and the local option use tax will be referred to as the "1% use tax".

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QUESTIONS & ANSWERS CONCERNING THE 1% SALES AND USE TAX:
"BUSINESS LOCATION" DEFINED:

1. Q. For purposes of the 1% sales and use tax, only, what is meant by the term "business
   location"?
   A. For purposes of the 1% sales and use tax, only, the term "business location" means a
   permanent branch, establishment or agency where, as a normal and regular practice,
   orders for tangible personal property are received, resulting in sales subject to the sales
   tax under Chapter 36 of Title 12. The term includes stores, warehouses, mail order
   houses, sales offices, sales outlets and other locations where employees of the retailer
   receive sales orders and perform other work related duties. A post office box or mail
   drop is not a "business location".
   GENERAL REPORTING REQUIREMENTS:
2. Q. How are retailers with a business location in South Carolina to report their sales?
   A. These retailers are to report their sales by county and municipality where their business
   location is situated; regardless of the fact that merchandise may be delivered to customers
   at a place other than the retailer's business location. Retailers with multiple business
   locations, are to maintain their records so as to clearly show which sales are attributable
   to each location.
3. Q. How are retailers with business locations in the State to report sales made via catalog,
   mail, fax or telephone?
   A. These sales are to be reported by the business location which receives the orders, if the
   orders are received by an in-state business location. If the orders are received by an outof-state business location, then the retailer's sales are reportable by customer location.
4. Q. How are "artists and craftsmen" who are licensed under Code Section 12-36-510(A)(2)
   and "transient or temporary" retailers licensed under Code Section 12-36-510(A)(3) to
   report their sales?
   A. Such retailers are to report their sales by municipality and county in which each retail
   sale is made.
5. Q. How are those retailers who make sales which are reportable by a business location and
   who also make sales from temporary locations to report their sales?
   A. Sales which are reportable by a particular business location are to be reported by county
   and municipality where the business location is situated. Sales made at temporary
   locations are to be reported by county and municipality where the temporary locations
   are situated.

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6. Q. Code Section 12-36-110(c) defines "retail sale" to include "the withdrawal, use, or
consumption of tangible personal property by anyone who purchases it at wholesale".
How are such "retail sales" to be reported?
A. These retail sales are to be reported by county and municipality where first withdrawn,
used or consumed.

7. Q. How are retailers who do not have a business location in the State (nonresident retailers)
   to report their sales?
   A. Nonresident retailers are required to "identify the county or municipality in the county
   area in which tangible personal property purchased at retail is stored, used or consumed
   in this State" (Code Section 4-10-20).
8. Q. How are persons who make purchases from nonresident retailers who are not authorized
   to collect the use tax to report their purchases (Code Section 12-36-1360)?
   A. Their purchases are to be reported by county and municipality where the property is first
   stored, used or consumed in South Carolina.
   SALES MADE VIA OUTSIDE SALESMEN:
9. Q. How are retailers with in-state business locations to report sales made by outside
   salesmen?
   A. Their sales are to be reported by the in-state business location where the sales orders are
   received from the salesmen. If sales orders are received at an out-of-state business
   location, then question #11 applies.
10. Q. How are retailers with in-state business locations to report sales made by outside
    salesmen who, at the time of taking the order, also deliver the merchandise to the
    customer?
    A. Their sales are to be reported by the business location where the salesmen turn in their
    sales invoices, route books or other sales records.
11. Q. How are retailers who do not have a business location in South Carolina, but who solicit
    orders via outside salesmen, to report their sales?
    A. Their sales are to be reported by county and municipality where their customers are
    located.
    EFFECT OF "DIRECT PAY" CERTIFICATES:
12. Q. What effect, if any, does the use of a "direct pay" exemption certificate (Code Section 1236-2510) have on the reporting of the 1% sales and use tax?

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A. By using a so-called "direct pay" exemption certificate, a taxpayer can make all
purchases tax free and must pay any taxes due directly to the Commission. The taxpayer
is liable for any taxes due and the tax (sales or use) is due upon the property being
"withdrawn, used or consumed by the taxpayer". For purposes of the 1% sales and use
tax, such withdrawals, use or consumption are reportable by county and municipality
where the property is first withdrawn, used or consumed.

13. Q. For those taxpayers who use a "direct pay" exemption certificate, what is the effect on the
    1% sales and use tax if the property is merely transferred from one locale to another? By
    "transferred", it is meant the property is not withdrawn from inventory for use or
    consumption.
    A. Merely transferring property from one locale to another does not trigger the tax. The tax
    is due when the property is withdrawn, used or consumed by the taxpayer and such use or
    consumption is reportable by the county and municipality where first withdrawn, used or
    consumed.
14. Q. What effect, if any, does use of a "limited" exemption certificate have on the reporting of
    the 1% sales and use tax?
    A. Unlike a "direct pay" exemption certificate, which allows the holder to make all
    purchases free of the tax, a so-called "limited" exemption certificate only allows specific
    items, which are exempt under Code Section 12-36-2120, to be purchased tax-free.
    If the holder of the limited exemption certificate purchases an item which falls within an
    exemption provided by Code Section 12-36-2120, then the purchase is exempt from the
    5% state tax and the 1% local tax. However, if the holder uses the certificate to purchase
    an item not exempt under Code Section 12-36-2120, then the holder of the certificate is
    liable for any tax due.
    Purchases made with a limited exemption certificate which are subject to the 1% sales tax
    are reportable by the county and municipality where the business location of the seller is
    located.
    Purchases made with a limited exemption certificate which are subject to the 1% use tax
    are reportable by the county and municipality where the property is first stored, used or
    consumed by the purchaser.
    TRANSACTIONS NOT SUBJECT TO THE 1% TAX:
15. Q. Are there any transactions which are not subject to the 1% sales and use tax?
    A. Yes. The following transactions are exempted or excluded from the 1% sales and use
    tax:
    (1)

Sales of "items with a maximum tax levied in accordance with [Section 12-362110]" are exempt from the 1% tax.
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"Items with a maximum tax" are aircraft, motor vehicles, motorcycles, boats,
trailers and semitrailers pulled by truck tractors, self-propelled light construction
equipment, unassembled aircraft, mobile homes and musical instruments and
office equipment purchased by certain religious organizations.
(2)

Transactions subject to the Casual Excise Tax under Article 17 of Title 12 are
exempt from the 1% tax.
That Article imposes "an excise tax for the issuance of every certificate of title, or
other proof of ownership, for every motor vehicle, motorcycle, boat, motor, or
airplane, required to be registered, titled, or licensed".

(3)

Those transactions exempted or excluded from the imposition of the 5% state sales
or use tax are exempt from the 1% tax.

CONSTRUCTION CONTRACTS:

16. Q. How does the 1% sales and use tax apply to construction contracts?
    A. Section 4-10-25 provides "[t]he gross proceeds of sales of tangible personal property
    delivered after the imposition date of the tax levied under Section 4-10-20 in a county,
    either under the terms of a construction contract executed before the imposition date, or a
    written bid submitted before the imposition date culminating in a construction contract
    entered into before or after the imposition date are exempt from the local sales and use
    tax...provided a verified copy of the contract is filed with the South Carolina Tax
    Commission within six months after the imposition of the local option sales and use tax".
    1% Sales Tax: Purchases from in-state suppliers
    For those transactions which are not exempt under the provisions of Code Section 4-1025 (see above), the 1% sales tax is reportable by the contractor's supplier in the county
    and municipality where the supplier has his business location. If the supplier is located in
    a county which has imposed the tax, then the tax is due. If the supplier is located in a
    county which has not imposed the tax, then the tax is not due. It does not matter if the
    county of delivery has imposed the 1% sales tax.
    1% Use Tax: Purchases from out-of-state suppliers
    For those transactions which are not exempt under the provisions of Code Section 4-1025 (see above), the 1% use tax is reportable in the county and municipality where the
    property is first stored, used or consumed by the contractor. If the county in which the
    property is first stored, used or consumed has imposed the tax, then the 1% use tax is due.
    If the county in which the property is first stored, used or consumed has not imposed the
    1% tax, then the tax is not due.

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17. Q. Code Section 12-36-110(1)(d) includes in the definition of "retail sale" "the use within
this State of tangible personal property by its manufacturer as building materials in the
performance of a construction contract".
How are such businesses, which are generally referred to as "manufacturer/contractors",
to report these "retail sales"?
A. "Manufacturer/contractors" are to report the 1% sales or use tax by county and
municipality where the property is used or consumed - the location of the construction
site.
VENDING MACHINE OPERATORS

18. Q. How are businesses which make sales from vending machines to report their sales?
    A. 1% Sales Tax:
    Items to be sold from vending machines, except for cigarettes and soft drinks in closed
    containers, which are purchased from in-state suppliers, are subject to the 1% sales tax
    when purchased by the vending machine operator. The vending machine operator's
    supplier is liable for the tax on such purchases and the supplier is to account for his sales
    by the county and municipality where his business location is situated.
    Sales of cigarettes and soft drinks in closed containers are subject to the 1% sales tax
    upon being sold from the vending machines. The liability for the tax is on the vending
    machine operator and he is to account for such sales by county and municipality in which
    the vending machines are located.
    1% Use Tax:
    Items to be sold from vending machines, except for cigarettes and soft drinks in closed
    containers, which are purchased from outside the State, are subject to the 1% use tax and
    is due at the time of purchase. The vending machine operator is liable for the tax and is
    to account for such purchases by county and municipality where the items are first stored
    or, if not stored, by machine location.
    Purchases of cigarettes and soft drinks in closed containers for sale from vending
    machines are not subject to the 1% use tax. The 1% sales tax is due upon such items
    being sold from the machines and is the liability of the vending machine operator. Again,
    such sales are to be accounted for by county and municipality where the machines are
    located.
    UTLILITIES
19. Q. How are utilities to report the 1% sales or use tax?

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A. Code Section 4-10-20 requires utilities "to report sales in the county or municipality in
which consumption of the tangible personal property occurs". In other words, utilities are
to report their sales by county and municipality where their customers are located.

20. Q. For purposes of question #19, what is a "utility"?
    A. A "utility" is an entity which sells products or services subject to the 5% state sales and
    use tax and transmits or delivers its products or services via electronic transmissions or
    pipelines (i.e. electric and gas companies, telephone companies, cable TV companies and
    other communications companies).
    NOTE: Entities which sell water via pipelines to the public are also "utilities"; however,
    their sales are exempt from the 5% sales and use tax.
    BUSINESSES WHICH BILL ON A MONTHLY BASIS:
21. Q. For those taxpayers who sell and bill their services on a monthly basis (i.e. electric
    utilities and cable TV companies), when are they to begin reporting the 1% sales or use
    tax?
    A. Section 4-10-100 requires such persons to report the 1% tax "beginning on the first day
    of the billing period beginning on or after the date of general imposition". The phrase
    "date of general imposition" means the date the 1% tax becomes effective in a particular
    county (e.g. July 1, 1991). For example, if an electric power company has a billing period
    ending July 10, 1991, the first "billing cycle" subject to the 1% tax would be the period
    beginning July 11, 1991. The period July 1st through July 10th would not be subject to
    the 1% tax.
    LEASES:
22. Q. If a lease of tangible personal property is executed prior to the imposition date of the 1%
    tax in a particular county and the lease period extends beyond the imposition date, does
    the 1% sales or use tax apply to those lease payments made after the imposition date?
    A. Yes. The 1% sales or use tax would apply to those lease payments made after the
    imposition date.
    ACCOMMODATIONS:
23. Q. Does the 1% sales tax apply to charges for accommodations?
    A. Yes. The 1% sales tax applies to charges for accommodations.
24. Q. How are taxpayers who are subject to the sales tax on accommodations to report the 1%
    sales tax if they own or manage rental units in different counties or municipalities?
    A. Section 4-10-20 provides that such taxpayers "shall report separately in [their] sales tax
    return the total gross proceeds from business done in each county or municipality".
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CREDIT FOR SALES AND USE TAXES PAID IN ANOTHER STATE:

25. Q. May credit be taken against the 1% use tax for sales and use tax due and paid in another
    state?
    A. Yes. Credit may be taken against the 1% use tax for sales and use tax due and paid in
    another state, as provided below:
    (1)

If the total tax due and paid in another state (state plus local) is less than 6% and
property is stored, used or consumed in a South Carolina county which has imposed
the 1% use tax, then the use tax owed in South Carolina is to be allocated 5/6 to the
State and 1/6 to the county.
For example, Georgia has a 4% state tax and a 1% local tax; therefore, if a taxpayer
makes a purchase in Georgia with a sales price of $1,000, upon which the 5% tax
was due and paid in Georgia, and stores, uses or consumes the property in a South
Carolina county which has imposed the 1% use tax, the difference owed in South
Carolina (1%) is to be allocated as follows State portion = 5/6 times 1% times $1,000 = $ 8.30
Local portion = 1/6 times 1% times $1,000 = 1.70
Total due
$10.00
=======

(2)

If the total sales and use taxes due and paid in another state (state plus local) is
greater than 6%, no tax will be due in South Carolina (either state or local).

(3)

If the property is stored, used or consumed in a S.C. county which has not imposed
the 1% sales and use tax, credit will be allowed against the 5% state use tax up to
the amount of state and local taxes due and paid in the other state.

SEPARATION OF TAXES, ESTIMATED TAXES, DISCOUNTS AND QUARTERLY
FILINGS:

26. Q. Are retailers required to separately state the 5% state tax from the 1% sales or use tax?
    A. No. Retailers are not required to separately state the 5% state tax from the 1% sales or
    use tax.
27. Q. Is the 1% sales or use tax to be considered in determining whether or not a taxpayer is
    required to pay estimated taxes?
    A. No. Code Section 12-36-2600 was amended to specifically exclude the 1% sales and use
    tax from the estimated tax provisions.

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28. Q. Do the discount provisions for filing and paying timely (Code Section 12-36-2610) apply
to the 1% sales and use tax?
A. Yes. Code Section 12-36-2610 allows the discount on returns "required by Section 1236-2570 [state tax] and Chapter 10 of Title 4 [1% sales and use tax]".

29. Q. If the answer to question #28 is "yes", how is the discount amount(s) to be computed?
    A. The discount amount is to be computed by applying the appropriate discount rate to the
    total tax due on the return (the 5% state combined with the 1% local tax). The discount
    allowed is 3% if the total tax liability on a return is less than $100; and 2% if the total tax
    is $100 or more.
    The total discount amount for a particular taxpayer (state plus local) cannot exceed
    $10,000 during any one state fiscal year.
30. Q. Is the 1% sales and use tax to be considered in determining whether or not a taxpayer
    may be permitted to file a quarterly return?
    A. Yes. The 1% sales and use tax should be considered in determining whether or not a
    taxpayer may be permitted to file a quarterly return. In other words, the 1% tax should
    be added to the state tax liability.
31. Q. Do the penalty and interest provisions of Chapter 54 of Title 12 apply to the 1% sales and
    use tax?
    A. Yes. Section 4-10-20 provides that the 1% sales and use tax are "subject to...the
    enforcement provisions of Chapter 54 of Title 12".
32. Q. If the answer to question #31 is "yes", are the penalties and interest to be applied to the
    1% sales and use tax separately from the state tax?
    A. Yes. Penalties and interest are to be applied to the 1% sales and use tax separately from
    the state tax.
    PROPERTY TAX
33. Q. In computing the credit against the property tax provided by Code Section 4-10-40(B), is
    the $20,000 "homestead exemption" amount (Code Section 12-37-250) to be included in
    "taxable property"?
    A. No. The $20,000 "homestead exemption" amount is not to be included in "taxable
    property".
34. Q. In computing the credit against the property tax provided by Code Section 4-40-40(B),
    what value is to be placed on agricultural real property?

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A. The value to be placed on agricultural real property is the property's "fair market value
for agricultural purposes", as defined by Code Section 12-43-220.

35. Q. Code Section 4-10-90(B) requires the revenue generated from the 1% sales and use tax to
    be allocated to the Property Tax Credit Fund and the County/Municipal Revenue Fund,
    during the first year after the effective date of the act, in a ratio of 63% to 37%. Over the
    next four years, the percentage going to the Property Tax Credit Fund will increase, while
    the percentage going to the County/Municipal Revenue Fund will decrease. During the
    fifth year, the percentages will level out at 71% and 29%, respectively.
    If a county imposes the 1% tax for a year other than the first year (July 1, 1991 through
    June 30, 1992), which percentages are to be used for allocation purposes - 63% and 37%
    (the first year's percentages) or the applicable percentages in effect for the year of
    imposition?
    A. If the 1% tax is imposed for a year other than the first year after the effective date of the
    act (July 1, 1991 through June 30, 1992), the allocation percentages to be used are those
    in effect for the year imposed. For example, if the tax is imposed in a county starting
    January 1, 1998, 71% of the revenue from the 1% tax is to be allocated to the Property
    Tax Credit Fund and 29% to the County/Municipal Revenue Fund.
    NOTIFICATION OF IMPOSITION OF THE 1% TAX
36. Q. When are those counties which approve the 1% tax in a year subsequent to the first
    referendum year (1990) to notify the Tax Commission and the State Treasurer that they
    have adopted a resolution to impose the 1% sales and use tax?
    A. For those counties approving the referendum in subsequent years, the resolution must be
    delivered within ten days of the referendum to be imposed at the beginning of the next
    quarter. If a county wishes to delay imposition of the tax to a later quarter, then it must
    deliver the resolution no later than 45 days before the first day of the quarter in which the
    tax is to be imposed.
    SOUTH CAROLINA TAX COMMISSION
    s/S. Hunter Howard Jr.
    S. Hunter Howard, Jr., Chairman
    s/A. Crawford Clarkson Jr.
    A. Crawford Clarkson, Jr., Commissioner
    s/T. R. McConnell
    T.R. McConnell, Commissioner
    Columbia, South Carolina
    November 21
    . 1990

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