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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What purchases qualify for South Carolina's Solar Energy Credit, and how much credit can a taxpayer claim?
A taxpayer can claim a nonrefundable South Carolina income tax credit equal to 25% of qualifying purchase and installation costs for an eligible solar energy system, small hydropower system, or geothe…
Does South Carolina charge sales tax on digital textbooks (eTextbooks) that students buy or rent for their college courses?
No. The Department ruled that both the SALE and the RENTAL of digital textbooks (eTextbooks) are exempt from South Carolina sales and use tax under the textbook exemption in § 12-36-2120(3)(a) — the s…
How does the South Carolina Department of Revenue decide penalties for alcohol (beer, wine, and liquor) licensing violations?
This Revenue Procedure is the Department's guideline framework for assessing penalties against alcohol (beer, wine, and liquor) license and permit holders who violate South Carolina's Title 61 alcohol…
What South Carolina tax interest rate applies through June 30, 2024, and what rate is paid on eligible refunds?
The listed South Carolina interest rate for tax underpayments and overpayments is 8% for the period October 1, 2023 through June 30, 2024. Interest is compounded daily, except that simple interest app…
If a South Carolina resident sells an interest in a partnership that does business in several states, is the whole gain taxed by South Carolina, or only part of it?
Only part of it. When a South Carolina resident sells an interest in a partnership that does business in multiple states, the gain is treated as connected with the taxpayer's business (through the par…
What authority does South Carolina Revenue Ruling #24-1 give the January 2024 Deed Recording Fee Manual?
South Carolina Revenue Ruling #24-1 incorporates the January 2024 Deed Recording Fee Manual as if the manual were published in full in the ruling, giving the manual the same effect as a Revenue Ruling…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through December 31, 2023?
Use the subject index attached to SC Information Letter #23-20. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through December 31, 2023 under administrative, alc…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through December 31, 2023?
Use the citator attached to SC Information Letter #23-19. It lists South Carolina Department of Revenue advisory opinions from 1987 through December 31, 2023 that the Department identifies as modified…
What are South Carolina's 2024 county tier rankings for the job tax credit, and which counties qualify for the tax moratorium and reduced fee-in-lieu investment?
SC Information Letter #23-18 sets the 2024 county rankings that drive several South Carolina incentives. For the job tax credit, all 46 counties are ranked into four tiers (Tier IV counties are the mo…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning October 1, 2023 (per SC IL #23-17)?
8%. SC Information Letter #23-17 sets South Carolina's interest rate on tax underpayments and overpayments at 8% for the period October 1, 2023 through March 31, 2024. Interest is compounded daily, ex…
What are South Carolina's state and county per capita income figures for tax-incentive purposes (per SC IL #23-16)?
SC Information Letter #23-16 (November 30, 2023) publishes South Carolina's most recent per capita personal income figures used to test tax incentives. The state figure is $53,618. The letter also lis…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through September 30, 2023?
Use the subject index attached to SC Information Letter #23-15. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through September 30, 2023 under administrative, al…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through September 30, 2023?
Use the citator attached to SC Information Letter #23-14. It lists South Carolina Department of Revenue advisory opinions from 1987 through September 30, 2023 that the Department identifies as modifie…
If a South Carolina tax return or payment is due on a Saturday, Sunday, or legal holiday, when is it actually due?
The deadline moves to the next business day. Under S.C. Code Ann. § 12-60-50, when the last day to file a South Carolina return, refund claim, or other document — or to make a payment — falls on a Sat…
Which farm purchases are exempt from South Carolina sales tax, and how does the SCATE card work?
South Carolina exempts many farm purchases from state (and Department-collected local) sales and use tax, but usually only for farmers in the agriculture BUSINESS who present a valid South Carolina Ag…
Which self-propelled vehicles qualify as motor vehicles for South Carolina's $500 maximum sales and use tax?
For South Carolina's maximum-tax rule, a motor vehicle is any motorized, self-propelled, wheeled vehicle that does not run on rails; highway use or DMV licensing is not required. Effective April 26, 2…
Which alcohol server-training programs does South Carolina recognize as a mitigating circumstance when an employee sells to an underage person?
SC Information Letter #23-13 lists the alcohol server-training programs the Department's Alcohol Beverage Licensing (ABL) section recognizes as a mitigating circumstance when deciding penalties. When …
Did South Carolina extend tax filing and payment deadlines because of Hurricane Idalia, and which taxes qualified?
Yes — South Carolina matched the IRS's Hurricane Idalia relief and postponed certain filing and payment deadlines to February 15, 2024. After FEMA designated all of South Carolina a disaster area and …
What major South Carolina tax-law changes and 2023-2024 budget provisions did the Department summarize in its 2023 legislative update?
The 2023 update reports South Carolina IRC conformity through December 31, 2022; a 6.4% top individual rate for tax year 2023; the earned income credit reaching 125% of the federal credit and the two-…
What South Carolina tax interest rate applied from October 1 through December 31, 2023, including eligible refund interest?
South Carolina's listed tax interest rate increased from 7% to 8% for October 1 through December 31, 2023. Interest generally compounded daily, except estimated-tax underpayments used simple interest.…
What is South Carolina's tax credit for hiring formerly incarcerated individuals, who qualifies, and how much is it?
South Carolina gives an employer a nonrefundable credit for hiring a 'formerly incarcerated individual' as a NEW employee in a U.S. Department of Labor-registered apprenticeship program, after 2021 bu…
What is South Carolina's tax credit for hiring veterans, who qualifies, and how much is it?
South Carolina gives an employer a nonrefundable credit for hiring a veteran of the U.S. Armed Forces — someone honorably discharged, or released for a service-connected disability, and hired within t…
When was South Carolina's 2023 sales tax holiday, and which purchases qualified?
South Carolina's 2023 sales tax holiday ran from 12:01 a.m. Friday, August 4 through midnight Sunday, August 6. Eligible new or used items of any price included clothing and accessories, footwear, sch…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through June 30, 2023?
Use the subject index attached to SC Information Letter #23-9. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through June 30, 2023 under administrative, alcoholi…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through June 30, 2023?
Use the citator attached to SC Information Letter #23-8. It lists South Carolina Department of Revenue advisory opinions from 1987 through June 30, 2023 that the Department identifies as modified, mod…
What South Carolina tax interest rate applied through September 30, 2023, including eligible refund interest for fiscal year 2023-2024?
The listed South Carolina tax interest rate remained 7% from January 1 through September 30, 2023. Interest generally compounded daily, except estimated-tax underpayments used simple interest. For fis…
What South Carolina state per capita income figure applied for economic-incentive tests in April 2023?
The Department listed South Carolina's most recently available state per capita personal income as $53,320 on April 17, 2023. The figure helped determine qualification for or the amount of incentives …
How did the Washington, D.C. Emancipation Day holiday affect South Carolina's 2022 income tax filing, payment, and refund-claim deadlines?
Because of the Washington, D.C. Emancipation Day holiday, South Carolina's 2022 income tax returns and payments were due April 18, 2023 instead of April 15. Emancipation Day (April 16) fell on a Sunda…
What South Carolina tax interest rate applied from January 1 through June 30, 2023, including eligible refund interest?
The listed rate for South Carolina tax underpayments and overpayments from January 1 through June 30, 2023 was 7%. Interest generally compounded daily, while estimated-tax underpayments used simple in…
What are South Carolina's state and county per capita income figures used for tax incentive qualification, per SC Information Letter #22-24?
South Carolina's state per capita personal income figure is $52,467, and SC Information Letter #22-24 also publishes the per capita income figure for each South Carolina county. The Department publish…
What are South Carolina's 2023 county tier rankings for the job tax credit, and which counties qualify for the tax moratorium and reduced fee-in-lieu investment?
SC Information Letter #22-23 sets the 2023 county rankings that drive several South Carolina incentives. For the job tax credit, all 46 counties are ranked into four tiers (Tier IV counties are the mo…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning January 1, 2023 (per SC IL #22-22)?
7%. SC Information Letter #22-22 sets South Carolina's interest rate on tax underpayments and overpayments at 7% for the period January 1, 2023 through March 31, 2023, up from 6% for the prior period …
How much of a South Carolina manufacturer's property is exempt from property tax under the manufacturing partial exemption, who qualifies, and how is it claimed?
South Carolina exempts 42.8571% of the property tax VALUE of manufacturing property that is assessed at the 10.5% ratio under Code Section 12-43-220(a)(1), effective for property tax years beginning a…
Does South Carolina sales and use tax apply to a fuel surcharge a retailer charges when it delivers merchandise to the customer in its own vehicle?
Yes, when the sale is taxable. A fuel surcharge a retailer charges a customer for delivering merchandise in the retailer's OWN vehicle is includable in 'gross proceeds of sales' / 'sales price' and is…
What South Carolina income tax deductions can a retiree, a person 65 or older, or a military retiree claim on retirement and other income, and how do they interact?
South Carolina gives individuals three separate income tax deductions, and one person can qualify for more than one. (1) The 'general' retirement income deduction (§ 12-6-1170(A)) lets the original ow…
Is a non-needle pain medication that chemically forces its active ingredient below the skin, administered in a physician's office, exempt from South Carolina sales and use tax as an 'injectable medication'?
Yes. A non-opioid pain medication ('X') that uses a matrix system to chemically FORCE its active ingredient below the surface of the skin into the dermis — administered by a physician or under a physi…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through September 30, 2022?
Use the subject index attached to SC Information Letter #22-21. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through September 30, 2022 under administrative, al…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through September 30, 2022?
Use the citator attached to SC Information Letter #22-20. It lists South Carolina Department of Revenue advisory opinions from 1987 through September 30, 2022 that the Department identifies as modifie…
Are injectable medications and injectable biologics sold for use in a hospital or an independent surgery center exempt from South Carolina sales and use tax under Code Section 12-36-2120(80)?
No — not under that exemption. The sale of an injectable medication or injectable biologic for use in a hospital or an independent surgery center is NOT exempt under Code Section 12-36-2120(80), becau…
When a South Carolina retailer delivers products into a county or city that charges a local sales and use tax, which local tax does it collect and remit, and how is it reported?
By the delivery jurisdiction. Once a retailer has nexus with South Carolina (physical presence, or economic nexus from more than $100,000 of SC sales), it automatically has nexus with EVERY local juri…
How are South Carolina sales of boats, boat motors, and boat trailers taxed — alone or as a package, by a dealer or a private seller?
It depends on WHAT is sold, by WHOM, and (for trailers) HOW the trailer is used. Boats and boat motors are 'maximum tax' items: taxed at 5% but never more than $500, and exempt from local sales and us…
When does South Carolina's casual excise tax apply to a boat, boat motor, or airplane, and how much is it?
South Carolina's CASUAL EXCISE TAX is a 5% tax (capped at $500) on the fair-market value of a boat, boat motor, or airplane, due when a South Carolina title or other proof of ownership is issued — but…
If a South Carolina retailer adds a separate 'inflation fee,' 'convenience fee,' or 'non-cash adjustment fee' (credit-card surcharge) to a sale, does the sales tax apply to that fee?
Yes. A separately stated 'inflation fee,' 'convenience fee,' 'non-cash adjustment fee' (credit-card surcharge), or similar fee that a retailer charges as part of a retail sale of tangible personal pro…
Did South Carolina extend tax deadlines because of Hurricane Ian, and until when?
Yes — South Carolina matched the IRS and postponed affected income tax deadlines to February 15, 2023. SC Information Letter #22-19 explains that after the IRS granted Hurricane Ian relief on October …
Who got South Carolina's one-time 2022 income tax rebate, how much was it, and what was the deadline to qualify?
Your 2021 South Carolina individual income tax liability, capped at $700. SC Information Letter #22-18 explains the one-time rebate created by the Comprehensive Tax Cut Act of 2022 (Act 228), funded b…
What South Carolina tax law changes did the 2022 legislative session make, as summarized in SC Information Letter #22-15?
SC Information Letter #22-15 is the Department's annual round-up of the significant tax and regulatory law changes enacted during South Carolina's 2022 legislative session, organized by subject (incom…
Is federal student loan forgiveness taxable on my South Carolina income tax return?
No — to the extent it is excluded federally, it is also excluded in South Carolina. SC Information Letter #22-14 explains that South Carolina adopts Internal Revenue Code Section 108, and during the 2…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning October 1, 2022 (per SC IL #22-13)?
6%. SC Information Letter #22-13 sets South Carolina's interest rate on tax underpayments and overpayments at 6% for the period October 1, 2022 through December 31, 2022, up from 5% for the prior peri…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through June 30, 2022?
Use the subject index attached to SC Information Letter #22-12. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through June 30, 2022 under administrative, alcohol…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through June 30, 2022?
Use the citator attached to SC Information Letter #22-11. It lists South Carolina Department of Revenue advisory opinions from 1987 through June 30, 2022 that the Department identifies as modified, mo…
When was South Carolina's 2022 sales tax holiday, and which items could be bought tax-free?
South Carolina's 2022 sales tax holiday ran from 12:01 a.m. Friday, August 5, 2022 through midnight Sunday, August 7, 2022 (the annual 72-hour holiday under S.C. Code § 12-36-2120(57)). During it, eli…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning July 1, 2022 (per SC IL #22-9)?
5%. SC Information Letter #22-9 sets South Carolina's interest rate on tax underpayments and overpayments at 5% for the period July 1, 2022 through September 30, 2022, up from 4% for the prior period …
If a partnership or S corporation pays another state's pass-through entity tax, can a South Carolina resident owner claim South Carolina's credit for taxes paid to other states?
It depends on the TYPE of income. South Carolina taxes residents on their worldwide PERSONAL SERVICE income but NOT on out-of-state, non-personal-service business income. So when a partnership or S co…
Can a South Carolina employer that claimed the federal Employee Retention Credit deduct the wages that were disallowed on its federal return?
Yes. When an employer claimed the federal Employee Retention Credit (ERC) for 2020 or 2021, federal law reduced (disallowed) its wage deduction by the amount of the credit under 'rules similar to' IRC…
When must an employer withhold South Carolina income tax for employees — including remote and out-of-state workers?
It turns on whether the worker is a South Carolina RESIDENT and where the services are performed. An employer must withhold SC income tax on a RESIDENT employee's wages no matter where they work (offi…
What can a South Carolina county spend its local 'transportation penny' sales-tax revenue on, and what's off-limits?
A South Carolina county's local 'transportation penny' sales-and-use tax (up to 1%, imposed under Title 4, Chapter 37 by ordinance and voter referendum) may be spent ONLY on the CAPITAL COSTS of the s…
Because of the Emancipation Day holiday, what was South Carolina's 2021 income-tax filing and payment deadline, and by when did a 2018 refund claim have to be filed?
April 18, 2022. Because Emancipation Day (April 16) was observed Friday, April 15, 2022 in Washington, D.C., the federal deadline moved to Monday, April 18, 2022, and South Carolina — whose due date s…
Are a company's sales of biological allergen extracts — testing kits, pre-mixed doses, and bulk extracts administered in a physician's office — exempt from South Carolina sales and use tax as injectable biologics?
Yes. A company's retail sales of biological allergen extracts are exempt from South Carolina sales and use tax as 'injectable biologics' under Code Section 12-36-2120(80)(a), because they are (1) deri…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through March 31, 2022?
Use the subject index attached to SC Information Letter #22-7. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through March 31, 2022 under administrative, alcohol…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through March 31, 2022?
Use the citator attached to SC Information Letter #22-6. It lists South Carolina Department of Revenue advisory opinions from 1987 through March 31, 2022 that the Department identifies as modified, mo…
Browse South Carolina rulings by topic
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.