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 regular and CARES Act unemployment benefits taxable in South Carolina in 2020, and could recipients withhold state tax?
The June 2020 letter said regular unemployment compensation and the expanded CARES Act benefits were taxable for federal and South Carolina income-tax purposes. A recipient could elect 7% South Caroli…
How did South Carolina's 2020-2025 credit and deduction for uncompensated clinical preceptors work?
For tax years 2020 through 2025, an eligible South Carolina physician, physician assistant, or nurse practitioner who was not compensated for qualifying student clinical rotations could earn a nonrefu…
Could a South Carolina Future Scholar 529 account pay K-12 public, private, or religious school tuition tax-free?
Yes. Beginning with tax year 2018, a Future Scholar withdrawal of up to $10,000 per year per beneficiary for tuition at a public, private, or religious K-12 school was a qualified withdrawal and was n…
Was the first federal COVID-19 economic impact payment taxable income for South Carolina income-tax purposes?
No. The CARES Act economic impact payment was not included in federal gross income and was not taxable for South Carolina income-tax purposes. It was an advance payment of a refundable federal credit …
What South Carolina tax interest rate applied from July 1 through September 30, 2020, and what did eligible refunds earn?
The listed rate for South Carolina tax underpayments and overpayments from July 1 through September 30, 2020 was 3%. Interest was compounded daily, except simple interest applied to underpayments of d…
What South Carolina state per-capita income figure did the Department publish in May 2020 for tax-incentive tests?
The Department published $45,314 as the most recently available South Carolina state per-capita personal income figure. The figure helped taxpayers test wage requirements for incentives such as the jo…
Were the requesting company's cloud software subscription and optional training taxable in South Carolina?
The online software subscription was taxable as access to an application service provider. Training was also taxable when sold in conjunction with or as part of the subscription because the service ch…
How did South Carolina extend the May 31, 2020 renewal deadline for coin-operated device and owner-operator licenses?
Eligible biennial coin-operated device and owner-operator licenses expiring May 31, 2020 could be renewed and paid by July 31, 2020 without the stated penalties. The renewed license still covered the …
Did a temporary COVID-19 remote-work location change create South Carolina nexus, alter income apportionment, or change employer withholding from March 13 through September 30, 2020?
Generally no. From March 13 through September 30, 2020, South Carolina did not use an employee's temporary COVID-related work-location change by itself to establish nexus, alter income apportionment, …
Which South Carolina COVID-19 tax deadlines were moved to July 15, 2020, and which other state taxes remained due June 1?
South Carolina moved covered income-tax, franchise-tax, and corporate-license-fee filings and payments originally due from April 1 through July 15, 2020 to July 15. The same date applied to estimated …
How could taxpayers check the status of South Carolina advisory opinions through March 31, 2020?
SC Information Letter #20-7 attaches the Department's citator for advisory opinions issued from 1987 through March 31, 2020. It identifies opinions the Department knew to be modified, modifying anothe…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through March 31, 2020?
Use the subject index attached to SC Information Letter #20-6. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through March 31, 2020 under administrative, alcohol…
Was a mobile concrete batch plant's per-yard mixing fee taxable for the requesting road contractor?
No. On the stated facts, the true object was a concrete-mixing service, so the mobile batch plant operator's per-cubic-yard fee was not subject to South Carolina sales tax. The road contractor bought,…
Who owed South Carolina sales tax on the requesting company's peer-to-peer vehicle rentals?
The requesting platform was the retailer responsible for remitting South Carolina sales tax on all of its peer-to-peer motor vehicle rentals of 30 days or less in the state. It qualified as a marketpl…
How did SC IL #20-4 change South Carolina's COVID-19 tax deadlines, and did income tax and other taxes get the same date?
SC Information Letter #20-4 (March 23, 2020) restated and updated the COVID-19 relief in #20-3 by splitting the deadlines. Income tax: conforming to the IRS (Notice 2020-18), South Carolina moved 2019…
Did South Carolina allow curbside sales of beer and wine during COVID-19, and under what conditions (per SC IL #20-5)?
Yes, temporarily. SC Information Letter #20-5 explains that Governor McMaster's Executive Order No. 2020-12 (effective March 21, 2020) temporarily suspended SC Regulation 7-702.5 — which otherwise bar…
What COVID-19 filing and payment relief did South Carolina announce in SC IL #20-3, and until when?
Until June 1, 2020. SC Information Letter #20-3 (March 17, 2020) announced special COVID-19 filing and payment relief: returns and payments for taxes administered by the Department that are due betwee…
When did South Carolina's casual excise tax apply to private sales of boats, boat motors, and airplanes under RR 20-1?
Under the law covered by RR 20-1, the purchaser in a private or other nonretailer sale paid casual excise tax when South Carolina issued title or proof of ownership and sales or use tax had not alread…
What is South Carolina's tax interest rate for underpayments and overpayments for the period ending June 30, 2020 (per SC IL #20-1)?
5%. SC Information Letter #20-1 sets South Carolina's interest rate on tax underpayments and overpayments at 5% for the period July 1, 2019 through June 30, 2020. Interest is compounded daily, except …
Was the requesting company's cloud software subscription taxable in South Carolina?
Yes. The Department treated the requesting company's lump-sum monthly charge for online access to its cloud software as a taxable communications charge for access to an application service provider. C…
How did Act 83 of 2019 increase South Carolina job tax credits in Tier III and Tier IV counties?
For qualifying jobs created in tax years beginning on or after January 1, 2019, Act 83 raised the basic per-job credit from $8,000 to $25,000 in Tier IV counties and from $4,250 to $20,250 in Tier III…
How are portable toilets, hand-washing stations, and waste-holding-tank services taxed in South Carolina?
Seventy percent of gross proceeds from renting a portable toilet or toilet trailer is exempt, so state and local sales and use tax applies to the remaining 30% of all connected charges, including rent…
When are delivery, freight, shipping, transportation, and fuel charges taxable in South Carolina?
A delivery charge generally follows the sale it serves: it is taxable when included in a taxable retail sale and nontaxable when tied to an exempt or wholesale sale. For a shipment containing taxable …
Are Universal Service Fund, Dual Party Relay, and 911 charges taxable on South Carolina phone bills?
A Universal Service Fund surcharge passed through by a local exchange carrier, VoIP provider, or commercial mobile radio provider is generally part of taxable telephone-service gross proceeds, except …
When are purchases by government employees, diplomats, and nonprofit employees exempt from South Carolina tax?
A federal employee's official purchase is exempt only when the federal government is the purchaser—such as direct government billing, a centrally billed government card, or a federal check. An employe…
Who must collect South Carolina sales and use tax on transactions made through a marketplace?
A marketplace that lists or advertises another person's products and collects or processes customer payments is the retailer and must license, file, and remit South Carolina state and local sales and …
When are electricity and fuel used at South Carolina homes exempt from sales and use tax?
Electricity and fuel used for living purposes at a primary residence, vacation home, or second home are exempt from South Carolina sales and use tax, including when the home is rented for any number o…
What qualifies for South Carolina's annual August sales tax holiday, and when is a purchase treated as tax-free?
From 12:01 a.m. on the first Friday in August through midnight Sunday, qualifying clothing, accessories, footwear, school supplies, computers, software, printers, printer supplies, and specified bed a…
Were the requesting company's survey, data-analysis, consulting, and online-reporting charges taxable?
No. The Department found that the true object was the requesting company's customized professional service: designing and conducting surveys, gathering and analyzing data, and delivering client-specif…
How were micro-distillery tours and liquor tastings taxed before the May 17, 2021 law change?
Under RR 19-3's pre-May 17, 2021 rules, a paid tour that included liquor was treated as a liquor sale: sales tax and the 5% liquor-by-the-drink excise tax applied to gross proceeds, while admissions t…
How do South Carolina sales and admissions taxes apply to brewery tours and beer samples?
When a brewery provides beer as part of a paid tour, the true object is the beer sale: sales tax applies to the full charge and admissions tax does not. The same sales-tax result applies when the tour…
Did South Carolina waive the estimated-tax underpayment penalty for farmers and fishermen for tax year 2018 (per SC IL #19-8)?
Yes. Following IRS Notice 2019-17, South Carolina will waive the estimated-tax underpayment penalty for qualifying farmers and fishermen for tax year 2018 if they file their income tax return and pay …
How does South Carolina individual income tax conform to the federal Tax Cuts and Jobs Act and related laws (per SC IL #19-7)?
SC Information Letter #19-7 summarizes how South Carolina's individual income tax conforms to the Internal Revenue Code through February 9, 2018. Under the 2018 SC Taxpayer Protection and Relief Act (…
How was South Carolina's state-tax addback calculated for individuals itemizing deductions in tax years 2018 through 2025?
For tax years 2018 through 2025, an individual who itemized federally and deducted state and local income tax or elected general sales tax generally added back the lesser of: itemized deductions excee…
What is South Carolina's tax interest rate for underpayments and overpayments for the period ending June 30, 2019 (per SC IL #19-6)?
6%. SC Information Letter #19-6 sets South Carolina's interest rate on tax underpayments and overpayments at 6% for the period January 1, 2019 through June 30, 2019. Interest is compounded daily, exce…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #19-4)?
Use the citator attached to SC Information Letter #19-4. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through December 31, 2018?
Use the subject index attached to SC Information Letter #19-3. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through December 31, 2018 under administrative, alco…
What are South Carolina's 2019 county tier rankings for the job tax credit, and which counties qualify for the tax moratorium and reduced fee-in-lieu investment (per SC IL #19-2)?
SC Information Letter #19-2 sets the 2019 county designations that drive several South Carolina incentives. For the job tax credit, the 46 counties are ranked into Tiers I-IV (higher tiers = larger cr…
What are South Carolina's state and county per capita income figures used for tax incentive eligibility (per SC IL #19-1)?
South Carolina's per capita income is $41,633, and SC Information Letter #19-1 lists the per capita income figure for each of the 46 counties (from Dillon at $27,111 to Charleston at $57,281). These f…
Are a restaurant's monthly charges for table-ordering tablets taxable, and is its separate $1 customer charge for playing offline tablet games taxable?
The vendor's monthly service fee and its share of game revenue were taxable because they paid for the restaurant's rental and use of the tablets. But the restaurant's $1 customer game fee was not taxa…
Why did South Carolina Revenue Ruling 18-16 withdraw the Department's earlier guidance on spending 2% local accommodations-tax funds?
The Department withdrew RR 98-22 because the General Assembly repealed the statute that had authorized the Department to answer questions about use of 2% local accommodations-tax revenue. The Tourism …
Under South Carolina's 2018 local-tax guidance, which local sales or use tax applied to delivered goods and how did the Catawba Tribal tax work?
Under this superseded ruling, a retailer with South Carolina nexus had nexus in every Department-administered local jurisdiction and collected local tax based on where goods were delivered. If the ret…
When does a remote seller without physical presence have South Carolina economic nexus and need to collect sales and use tax?
A remote seller has South Carolina economic nexus when gross revenue from property, electronically transferred products, and services delivered into the state exceeds $100,000 in the current or previo…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning April 1, 2018 (per SC IL #18-11)?
5%. SC Information Letter #18-11 sets South Carolina's interest rate on tax underpayments and overpayments at 5% for the period April 1, 2018 through December 31, 2018. Interest is compounded daily, e…
Under South Carolina's original manufacturing-property partial exemption, which manufacturers and property qualified and how was the exemption claimed?
Under this superseded ruling, manufacturers received a phased-in partial exemption for property used in the manufacturing business and assessed at the 10.5% ratio. It applied automatically through the…
How may South Carolina counties spend revenue from the local 1% transportation (penny) sales and use tax (per SC IL #18-10)?
SC Information Letter #18-10 issues guidelines for how counties may spend revenue from the local 1% transportation sales and use tax (the "Penny Tax") authorized by Title 4, Chapter 37 (the Optional M…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #18-9)?
Use the citator attached to SC Information Letter #18-9. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through June 30, 2018?
Use the subject index attached to SC Information Letter #18-8. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through June 30, 2018 under administrative, alcoholi…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning April 1, 2018 (per SC IL #18-7)?
5%. SC Information Letter #18-7 sets South Carolina's interest rate on tax underpayments and overpayments at 5% for the period April 1, 2018 through September 30, 2018. Interest is compounded daily, e…
When is South Carolina's 2018 sales tax holiday and what items are exempt (per SC IL #18-5)?
South Carolina's 2018 sales tax holiday runs from 12:01 a.m. Friday, August 3, 2018 through midnight Sunday, August 5, 2018. During that three-day weekend, the 6% state sales and use tax and any appli…
What is South Carolina's most recent statewide per capita income figure used for tax incentive eligibility (per SC IL #18-6)?
South Carolina's most recently available statewide per capita income figure is $40,421, per SC Information Letter #18-6. This matters because a number of South Carolina income, sales-and-use, and prop…
How does South Carolina calculate sales or use tax on a qualifying fire truck and the firefighting equipment sold with it?
A qualifying fire truck is taxed at 5% of its sales price or $500, whichever is less. Non-clothing firefighting equipment shares that cap only when it is supplied with the truck by the same vendor and…
When does South Carolina use tax apply to purchases from Internet, catalog, auction-site, or out-of-state sellers, and how is it reported?
South Carolina use tax generally applies when taxable property is bought at retail for use, storage, or consumption in the state and South Carolina sales tax was not fully collected. Credit may be ava…
How did South Carolina's Utility License Fee Credit work under the rules summarized in RR 18-8?
Under RR 18-8, a company subject to the § 12-20-100 Utility License Fee could claim a nonrefundable credit equal to cash paid for qualifying infrastructure benefiting an eligible project. The annual c…
Under South Carolina's 2018 rules, how were boats, boat motors, and boat trailers taxed when sold alone or together by a retailer or private seller?
This historical ruling separated each item and seller type: boats were maximum-tax items; unattached boat motors were taxed at the full rate; and trailer treatment depended on retailer status and pers…
When can a South Carolina purchaser age 85 or older receive the one-percentage-point reduction in the state sales, use, or casual excise tax rate?
A purchaser age 85 or older receives the one-percentage-point state tax reduction only when the individual personally buys an item for personal use, requests the reduction at the time of sale, and pro…
Are hotel destination marketing fees subject to South Carolina's accommodations tax?
Yes. A destination marketing fee, hotel marketing fee, or similar charge imposed with transient lodging is part of the gross proceeds from furnishing accommodations and is subject to South Carolina's …
Is racing gasoline used off-road at tracks or in speedboats subject to South Carolina's motor fuel user fee?
Yes. Racing gasoline, racing gasohol, and racing blends containing gasoline are subject to South Carolina's motor fuel user fee whenever used or consumed in the state, even when used only in race cars…
Do sales and long-term leases of barges qualify for South Carolina's maximum tax as boats?
Yes. A barge used as a boat qualifies for South Carolina's 5% sales and use tax capped at $500. A lease qualifies only when written, stated for more than 90 continuous days, and kept in force for that…
Does South Carolina treat a jet ski or other personal watercraft as a boat for the maximum tax?
Yes. South Carolina treats a personal watercraft, including a jet ski, as a boat for the maximum sales and use tax. Effective July 1, 2017, tax is 5% of the applicable sales or lease amount, capped at…
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.