South Carolina State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in South Carolina, with full citations and the original source on every page.
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Were FNMA's charges for an online mortgage information service subject to South Carolina sales and use tax under this PLR?
No. Although online information access was generally treated as a taxable communication service, FNMA's charges were exempt because 12 U.S.C. § 1723a protected FNMA from state and local taxation excep…
How did South Carolina tax custom signs, design services, installation, and foundation materials under this private letter ruling?
The sign company was a retailer, so signs and related consultation, engineering, design, survey, and permit charges were taxable. Reasonable separately stated installation was not. Separately stated f…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #07-15)?
Use the index attached to SC Information Letter #07-15 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to June 30, 2007, and it explains t…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #07-14)?
Use the citator attached to SC Information Letter #07-14. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…
What is South Carolina's tax interest rate for the period July 1, 2006 through September 30, 2007 (per SC IL #07-13)?
8%. SC Information Letter #07-13 sets South Carolina's interest rate on tax underpayments and overpayments at 8% for the period July 1, 2006 through September 30, 2007. Interest is compounded daily, e…
When is South Carolina's 2007 sales tax holiday and what is exempt (per SC IL #07-12)?
August 3-5, 2007. SC Information Letter #07-12 sets South Carolina's 2007 sales tax holiday for the weekend beginning Friday, August 3, 2007 at 12:01 a.m. and ending Sunday, August 5, 2007 at midnight…
What are South Carolina's latest state and county per capita income figures used for tax incentives (per SC IL #07-11)?
$29,515 statewide. SC Information Letter #07-11 publishes the most recently available per capita personal income figures for South Carolina — $29,515 for the state, plus a figure for every county — wh…
How did South Carolina's annual and alternative monthly job tax credits work for small businesses under the 2007 guidance?
A qualifying business with 99 or fewer worldwide employees generally needed a monthly average increase of at least two new full-time South Carolina jobs. It could use an annual credit claimed in years…
How did South Carolina update its April 17, 2007 filing relief to cover the storm, Virginia Tech, and Intuit e-filing problems (per SC IL #07-10)?
SC Information Letter #07-10 updates the Department's relief for returns originally due April 17, 2007, expanding on SC Information Letter #07-9. It reflects that the IRS extended the April 16, 2007 N…
Did South Carolina extend the April 17, 2007 tax deadline for people affected by the April 16 Northeast storm or the Virginia Tech shooting (per SC IL #07-9)?
Yes. SC Information Letter #07-9 announces that the South Carolina Department of Revenue will provide the same filing and payment relief the IRS granted for returns originally due April 17, 2007, to t…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #07-8)?
Use the index attached to SC Information Letter #07-8 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to March 31, 2007, and it explains t…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #07-7)?
Use the citator attached to SC Information Letter #07-7. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
How did South Carolina tax wireless-system equipment, design, installation, and in-wall cabling under this private letter ruling?
The taxpayer was selling equipment, not primarily improving real property. Antennas, electronics, and related design charges were taxable; reasonable separately stated installation labor was not. Sepa…
What is South Carolina's tax interest rate for the period July 1, 2006 through June 30, 2007 (per SC IL #07-6)?
8%. SC Information Letter #07-6 sets South Carolina's interest rate on tax underpayments and overpayments at 8% for the period July 1, 2006 through June 30, 2007. Interest is compounded daily, except …
Were healthcare providers' access, implementation, and training charges for a private communications network taxable under this SC PLR?
Yes, on the stated facts. Monthly access and use charges were taxable communication-service charges, and mandatory implementation and training fees were part of taxable gross proceeds. The charges wer…
What did South Carolina's 2007 amendment to Regulation 117-300.6 on retail licenses and partnerships do (per SC IL #07-5)?
SC Information Letter #07-5 announces that the General Assembly approved an amendment to SC Regulation 117-300.6, which concerns 'Retail Licenses and Partnerships,' on February 1, 2007, and that the a…
Which exemptions apply to South Carolina's local sales and use taxes collected by the Department (per SC IL #07-4)?
SC Information Letter #07-4 provides the Department's reference chart showing which exemptions apply to each type of local sales and use tax the Department collects on behalf of counties, school distr…
Could one related rental company subtract property taxes it reimbursed to the vehicle-owning affiliate from South Carolina rental surcharges?
Yes, on the stated facts. The rental company could reimburse its vehicle-owning affiliate for a documented share of South Carolina property tax and subtract that amount from surcharge remittances. Acr…
How are South Carolina counties ranked for the job tax credit for 2007, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #07-3)?
SC Information Letter #07-3 publishes South Carolina's 2007 county rankings for the job tax credit, plus the counties that qualify for a reduced fee-in-lieu investment threshold and for the tax morato…
Which South Carolina county classifications governed 2006 job credits, tax moratoriums, and reduced fee-in-lieu investment under RR 07-1?
The ruling published two historical 2006 job-credit ranking lists based on when a credit was first earned, designated Allendale, Marion, McCormick, and Williamsburg as moratorium counties, and identif…
How is South Carolina treating Economic Impact Zone credit carryforwards and effective dates after the SCANA litigation (per SC IL #07-2)?
SC Information Letter #07-2 explains the Department's position after a November 14, 2006 Circuit Court order in SCANA Corporation and Subsidiaries v. South Carolina Department of Revenue (Case No. 200…
Which exemptions apply to South Carolina's local sales and use taxes collected by the Department (per SC IL #07-1)?
SC Information Letter #07-1 provides the Department's reference chart showing which exemptions apply to each type of local sales and use tax the Department collects on behalf of counties, school distr…
Under RR 06-12, which pass-through income qualified for South Carolina's reduced active-business income-tax rate?
Eligible individuals, estates, and trusts could elect the phased reduced rate for South Carolina active trade or business income from a sole proprietorship, partnership, S corporation, or qualifying L…
When does a deed conveying South Carolina mineral rights trigger the deed recording fee?
A deed conveying mineral rights is subject to the recording fee when the buyer will sever the oil, gas, sand, or other minerals, because the transaction transfers realty. If the seller will sever the …
How did RR 06-9 historically tax sales and renewals of warranty, maintenance, and similar service contracts?
For transactions from October 1, 2005 until the rule changed in 2011, retail sales and renewals of contracts covering tangible personal property were generally taxable, whether sold with the property,…
Which communication and online services did South Carolina treat as taxable transmissions under RR 06-8?
RR 06-8 treated charges for access to or use of systems transmitting voice or messages as taxable, including many telephone, programming, fax, voicemail, email, and individual-website or database serv…
Is recording a deed that conveys a South Carolina easement or right of way subject to the deed recording fee?
Yes. Recording a deed that transfers an easement or right of way to another person is subject to South Carolina's deed recording fee unless a statutory exemption applies. The fee is based on the value…
Could the taxpayer claim South Carolina textile-mill revitalization income-tax credits when redevelopment required demolition?
Yes, on the taxpayer's stated facts and if every statutory requirement was met. Demolishing the deteriorated primary building did not prevent the abandoned textile site from qualifying for the income-…
Was the taxpayer's early termination fee for a discounted taxable communication service subject to South Carolina sales and use tax?
Yes. The taxpayer's early termination charge was taxable because it was consideration tied to the taxable communication service and formed part of the service's gross proceeds or sales price. The fee …
What transactions were covered by South Carolina's one-time Thanksgiving sales-tax holiday on November 24–25, 2006?
For 48 hours on November 24–25, 2006, South Carolina suspended state sales, use, and casual excise taxes on otherwise taxable events, except accommodations and additional guest charges. The holiday al…
Which foods qualified for South Carolina's reduced 3% state sales-tax rate beginning October 1, 2006?
Unprepared food that could lawfully be purchased with USDA food benefits qualified for the historical 3% state rate, whether or not benefits were actually used and whether or not the retailer accepted…
Did sales and long-term leases of barges qualify for South Carolina's historical maximum tax as boats under RR 06-6?
Yes. RR 06-6 treated a barge used as water transportation as a boat eligible for the historical $300 maximum tax. A lease qualified only if written, stated for more than 90 continuous days, and kept i…
When does South Carolina allow a use-tax credit for sales or use tax paid on property purchased in another state?
South Carolina allows a credit when sales or use tax was legally due and paid to another state or the District of Columbia on the same tangible-property purchase and the taxpayer can prove it. The tax…
Was racing gasoline used only in race cars or speedboats subject to South Carolina's motor fuel user fee under RR 06-3?
Yes. The Department said racing gasoline used or consumed in South Carolina was subject to the motor fuel user fee even when intended only for race cars or speedboats. Its high octane, lead content, o…
Who was responsible for South Carolina use tax on untaxed Internet, catalog, travel, and other out-of-state purchases under RR 06-2?
The South Carolina purchaser owed use tax when taxable property bought from an out-of-state retailer was used, stored, or consumed in the state and sufficient tax had not already been paid. Tax legall…
How could taxpayers check whether a South Carolina advisory opinion had been modified, superseded, or made obsolete as of March 31, 2006?
Use the citator attached to SC Information Letter #06-7. It covers South Carolina advisory opinions issued from 1987 through March 31, 2006 and identifies how later advisory opinions modified, superse…
Could South Carolina use a nonresident servicemember's exempt military pay to reduce deductions against taxable nonmilitary income?
No. South Carolina said a nonresident servicemember no longer had to include military income that the state could not tax when completing the specified Schedule NR income line. Using that exempt pay i…
What South Carolina tax interest rate applied from October 1, 2005 through June 30, 2006?
7%. SC Information Letter #06-6 lists South Carolina's interest rate on tax underpayments and overpayments as 7% for October 1, 2005 through June 30, 2006. Interest was compounded daily, except simple…
Which alcohol training programs did South Carolina recognize for penalty mitigation in SC Information Letter #06-5?
SC Information Letter #06-5 recognized five alcohol-training programs for purposes of mitigating penalties when the employee who committed the violation had completed qualifying training: TIPS; ServSa…
What South Carolina tax relief applied to taxpayers affected by Hurricane Katrina under SC Information Letter #06-4?
South Carolina matched the extended federal Hurricane Katrina relief described in IRS Notice 2006-20. The relief ran through August 28, 2006 for covered returns, tax payments, and tax deposits whose o…
Which South Carolina tax regulations became effective on February 24, 2006 after General Assembly approval?
SC Information Letter #06-3 announces six regulation actions approved by the General Assembly on January 17, 2006 and effective when published in the State Register on February 24, 2006. They amended …
Were a taxpayer's DVD rentals and sales made exclusively through automated vending machines subject to South Carolina sales tax?
No, on the taxpayer's specific facts. Customer rentals or sales made exclusively through automated DVD vending machines were not retail sales subject to sales tax. Instead, the vending-machine operato…
What CPI increase did South Carolina use to limit local general-operating millage increases in 2006?
3.4%. SC Information Letter #06-2 says the average Consumer Price Index for All Urban Consumers increased 3.4% during calendar year 2005. Under § 6-1-320(A), a local governing body's 2006 millage rate…
How did South Carolina rank counties for the 2006 job tax credit, and did any county qualify for the reduced fee-in-lieu investment threshold?
SC Information Letter #06-1 publishes two county-ranking lists for new full-time jobs created in tax years beginning in 2006: one for credits first earned after June 18, 2002, and one for credits firs…
When did a South Carolina manufacturer report property, and who reported sold manufacturing assets under Revenue Ruling 05-20?
A manufacturer generally reported real and tangible personal property to the Department by the last day of the fourth month after its income-tax accounting year ended. Property tax was billed later an…
Which South Carolina venues could sell or allow alcohol consumption on Sunday, January 1, 2006?
For Sunday, January 1, 2006, qualifying food-service and lodging venues needed a local-option permit to sell liquor by the drink, beer, or wine. Licensed nonprofit private clubs and properly permitted…
Is every property owned by a South Carolina nonprofit hospital exempt from property tax?
No. A nonprofit hospital's ownership alone did not exempt every property. RR 05-18 required the property to be devoted to and necessary for the hospital's functional operation. Mixed-use property coul…
How did South Carolina's 2005 small-business job tax credit work for businesses with 99 or fewer employees?
For tax years beginning in 2006, many qualifying businesses with 99 or fewer employees could enter the job tax credit with a monthly average increase of at least two new full-time jobs instead of 10. …
Under South Carolina's 2005 guidance, when did a retailer have to remit a county's local tax on delivered goods?
Under RR 05-16, a retailer with South Carolina physical-presence nexus had to remit a delivery county's tax when it purposefully used or targeted that county's market. Delivery by the retailer's vehic…
Who owed sales or use tax when a property manager bought operating supplies for a commercial property owner?
For these agreements, the property manager provided a nontaxable management service and did not resell the supplies. The commercial property owner was the purchaser of goods delivered for immediate us…
Were Hurricane Katrina purchases made with FEMA or Red Cross assistance exempt from South Carolina sales tax?
Purchases made with the specified FEMA or Red Cross Hurricane Katrina debit cards were exempt as federal-government purchases. Purchases made with aid deposited into a victim's own bank account, paid …
How did South Carolina tax a lump-sum county contract for communications towers, concrete shelters, and radio equipment?
For this taxpayer's contract, the tower and concrete-shelter construction portion was not taxed to the county, but the contractor owed tax on the building materials it consumed. Antennas, cables, ampl…
Which entertainment and recreation charges did South Carolina treat as taxable admissions under Revenue Ruling 05-14?
RR 05-14 treated a paid right to enter or use a location that entertains, relaxes, distracts, or gives pleasure as a taxable admission unless a statutory exemption applied. Its broad examples included…
How did South Carolina classify software, ASP access, and software-maintenance contracts under Revenue Ruling 05-13?
RR 05-13 treated software delivered by disk, tape, load-and-leave media, or as part of a computer system as taxable, while software delivered solely electronically from a remote location was generally…
How did South Carolina tax warranty, maintenance, and similar service contracts under Revenue Ruling 05-12?
For transactions beginning October 1, 2005, RR 05-12 treated sales and renewals of warranty, maintenance, and similar service contracts as taxable whether optional or mandatory, except qualifying moto…
Was an implanted device used to treat degenerative spine disease exempt as a prosthetic device in SC PLR 05-3?
No, for the taxpayer and device in this PLR. The spinal implant was taxable because it prevented or corrected a deformity or malfunction but did not replace a missing part of the body, which the regul…
How did South Carolina calculate and prorate the capital-based corporate license fee under Revenue Ruling 05-11?
Under RR 05-11, most covered corporations calculated the annual fee as $15 plus $1 per $1,000, or fraction, of capital stock and paid-in or capital surplus, subject to a $25 minimum. Multistate corpor…
Which purchases qualified for South Carolina's annual August sales-tax holiday under RR 05-9?
During the three-day August holiday, qualifying clothing, accessories, footwear, school supplies, computers, printers, software, printer supplies, and specified bed-and-bath items were exempt. Jewelry…
How did South Carolina's 2005 sales tax holiday apply to online orders, delivery charges, alterations, exchanges, rain checks, and layaway?
Qualifying items were exempt during the three-day August holiday if delivered and paid for then, or ordered, paid for, and accepted for immediate shipment. Delivery and alteration charges tied to an e…
Were both deeds in a construction-loan arrangement subject to South Carolina's deed recording fee?
Yes. In the ruling's example, the owner's deed to the builder so the builder could obtain financing was taxed on the land's $22,000 fair market value, subject to the property-tax-value election. The b…
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These are official tax letter rulings and advisory opinions issued by South Carolina's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.