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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How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #10-15)?
Use the citator attached to SC Information Letter #10-15. 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 ending March 31, 2011 (per SC IL #10-14)?
3%. SC Information Letter #10-14 sets South Carolina's interest rate on tax underpayments and overpayments at 3% for the period January 1, 2011 through March 31, 2011. Interest is compounded daily, ex…
What firearms and transaction charges were exempt during South Carolina's one-time Second Amendment sales tax holiday in November 2010?
Only qualifying handguns, rifles, and shotguns were exempt during November 26-27, 2010. Associated delivery or engraving could be exempt, but ammunition and separately sold parts, accessories, and sup…
Is customer-owned excess renewable electricity taxable when it is banked under a net-metering plan and later offsets the customer's utility usage?
No. When the customer retained ownership of excess renewable electricity and banked it with the utility, later use of that electricity was not a utility sale or customer consideration, so its value wa…
How did the rules for temporary beer and wine permits at South Carolina special events change effective January 1, 2011 (per SC IL #10-13)?
Effective January 1, 2011, temporary beer and wine permits for fairs and special functions are restricted to nonprofit organizations — individuals and businesses can no longer obtain them for function…
What is South Carolina's latest statewide per capita income figure used for tax incentives (per SC IL #10-12)?
$32,338. SC Information Letter #10-12 publishes the updated statewide per capita personal income figure for South Carolina — $32,338 — which the Department uses to test qualification for various South…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #10-11)?
Use the citator attached to SC Information Letter #10-11. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…
Which alcohol-server training programs does South Carolina recognize as a mitigating circumstance for beverage-license penalties (per SC IL #10-10)?
SC Information Letter #10-10 lists the alcohol-server training programs the Department recognizes as a mitigating circumstance when it assesses penalties for beer, wine, and distilled-spirits violatio…
What were the significant South Carolina tax-law changes from the 2010 legislative session, as summarized by the Department (per SC IL #10-9)?
SC Information Letter #10-9 is the Department's brief summary of the significant tax and regulatory law changes enacted in South Carolina's 2010 legislative session, organized into five categories: (1…
What is South Carolina's tax interest rate for the period ending December 31, 2010 (per SC IL #10-8)?
4%. SC Information Letter #10-8 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through December 31, 2010. Interest is compounded daily, ex…
Are hosted business-collaboration and electronic-messaging subscription services subject to South Carolina sales and use tax?
Yes. The Department treated the described hosted collaboration and messaging subscriptions as taxable communications services, taxed all associated fees, and sourced them to each end user's primary bu…
What is South Carolina's tax interest rate for the period ending September 30, 2010 (per SC IL #10-5)?
4%. SC Information Letter #10-5 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through September 30, 2010. Interest is compounded daily, e…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #10-7)?
Use the citator attached to SC Information Letter #10-7. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
When is South Carolina's 2010 sales tax holiday and what is exempt (per SC IL #10-6)?
August 6-8, 2010. SC Information Letter #10-6 sets South Carolina's 2010 sales tax holiday for the weekend beginning Friday, August 6, 2010 at 12:01 a.m. and ending Sunday, August 8, 2010 at midnight.…
How did South Carolina's 2010 guidance apply the August sales tax holiday to online orders, delivery, alterations, exchanges, rain checks, and layaway?
Qualifying orders accepted and paid during the holiday for immediate shipment could be exempt even if delivered later. Related delivery and alteration charges were exempt, but layaway purchases were n…
Which items did South Carolina list as exempt or taxable during its annual August sales tax holiday in the 2010 guidance?
The 2010 list exempted qualifying clothing, footwear, school supplies, computers, printers, software, and specified bedding and bath items. It excluded business-use items, layaway sales, rentals, jewe…
What are South Carolina's latest state and county per capita income figures used for tax incentives (per SC IL #10-4)?
$32,495 statewide. SC Information Letter #10-4 publishes the most recently available per capita personal income figures for South Carolina — $32,495 for the state, plus a figure for every county — whi…
Under South Carolina's original 2010 guidance, when was a nonresident military spouse's South Carolina service income protected from state income tax?
Under the 2010 ruling, a spouse's South Carolina service income was protected when both spouses shared an out-of-state domicile, the servicemember was present under orders, and the spouse was there so…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #10-3)?
Use the citator attached to SC Information Letter #10-3. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
Did qualifying low-speed vehicles receive South Carolina's former $300 maximum sales tax as motor vehicles?
Yes, under the former law. A low-speed vehicle meeting South Carolina's highway, title, registration, licensing, insurance, and safety requirements qualified for 5% tax capped at $300 with no local ta…
Did a rebate paid under South Carolina's 2010 Energy Star appliance program reduce the amount subject to sales tax?
No. The 2010 rebate did not reduce taxable gross proceeds because the retailer received the discounted customer payment plus reimbursement from the State Energy Office program. A separately stated tra…
What is South Carolina's tax interest rate for the period ending June 30, 2010 (per SC IL #10-2)?
4%. SC Information Letter #10-2 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through June 30, 2010. Interest is compounded daily, except…
How are South Carolina counties ranked for the job tax credit for 2010, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #10-1)?
SC Information Letter #10-1 publishes South Carolina's county rankings for the job tax credit for 2010, together with the counties that qualify for a reduced minimum investment under the fee in lieu o…
When may a South Carolina beer or wine wholesaler replace a retailer's damaged or outdated inventory without giving prohibited free product?
A wholesaler may replace beer or wine with an identical like product when damage occurred before or during delivery or was caused by the wholesaler's employee. Beer wholesalers also had limited outdat…
Which medicines, prosthetic devices, diabetic supplies, and other medical products did South Carolina treat as sales-tax exempt in 2010?
Exemption depended on the product, purchaser, prescription, and use. Prescription-required medicine sold by prescription to an individual was exempt, while many supplies sold to doctors or hospitals w…
How did South Carolina apply sales tax, admissions tax, alcohol permits, and liquor-by-the-drink tax to nonprofit fundraising events?
Tax treatment depends on what guests are really buying and whether an exemption applies. True donations are not sales or admissions, but meals, entertainment, drinks, and auctioned goods can be taxabl…
Are mandatory housekeeping charges billed to fractional owners during their assigned resort-villa weeks taxable as additional guest charges?
No. During their assigned ownership weeks, the co-owners were not transients paying room rent, so housekeeping was not an additional guest charge. The result changed when the villa was rented to a tra…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #09-25)?
Use the index attached to SC Information Letter #09-25 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 through December 2009, and it expla…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #09-24)?
Use the citator attached to SC Information Letter #09-24. 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 ending March 31, 2010 (per SC IL #09-22)?
4%. SC Information Letter #09-22 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through March 31, 2010 — extending the same 4% rate the De…
How does the federal Military Spouses Residency Relief Act affect South Carolina income, withholding, and personal property tax for a servicemember's spouse (per SC IL #09-21)?
SC Information Letter #09-21 explains how the federal Military Spouses Residency Relief Act (Pub. L. 111-97, signed November 11, 2009) applies in South Carolina. The Act lets a servicemember's spouse …
What tax changes did South Carolina's 2009 subsequent legislation (Act 124 / House Bill 3130) make for large manufacturing projects (per SC IL #09-20)?
SC Information Letter #09-20 summarizes tax legislation the General Assembly passed after its main 2009 session — House Bill 3130 (Act No. 124), signed October 30, 2009 — supplementing the Department'…
When could property temporarily kept in South Carolina avoid use tax because it was intended for out-of-state use?
The exclusion applied only to a use-tax purchase made for known out-of-state use, with first substantial use outside South Carolina or qualifying in-state processing followed by exclusive out-of-state…
What National Guard and Reserve pay could be subtracted from South Carolina taxable income under the 2009 guidance?
Qualifying pay for limited annual training, all actual weekend drills, and other actual inactive-duty training could be subtracted. Activated members could instead qualify for 15 days of active-duty p…
How did South Carolina phase in single-sales-factor apportionment for tangible-property businesses from 2007 through 2010?
The taxpayer compared the old three-factor and new sales-factor methods and received only 20%, 40%, 60%, or 80% of a beneficial reduction in 2007–2010. The phase-in also affected license fees.
What is South Carolina's latest statewide per capita income figure used for tax incentives (per SC IL #09-19)?
$32,666. SC Information Letter #09-19 publishes the updated statewide per capita personal income figure for South Carolina — $32,666 — which the Department uses to test qualification for various South…
What firearms and charges qualified for South Carolina's one-time 2009 Second Amendment sales-tax holiday?
Only qualifying handguns, rifles, and shotguns sold during November 27–28, 2009 were exempt. Separately sold ammunition, parts, attachments, supplies, and accessories remained taxable.
When did a buyer have to withhold South Carolina income tax from a nonresident seller of real estate under the 2009 guidance?
A buyer generally withheld on a taxable South Carolina real-property sale by a nonresident. A valid seller affidavit could establish residency, exemption, deferred gain, or a lower gain-based withhold…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #09-18)?
Use the index attached to SC Information Letter #09-18 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 through September 2009, and it expl…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #09-17)?
Use the citator attached to SC Information Letter #09-17. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…
Are golf, tennis, and similar tournament entry fees subject to South Carolina admissions tax?
The participation fee itself was not taxed, but the portion representing normal use of the course, court, range, or other amusement facility was subject to admissions tax unless exempt.
What is South Carolina's income tax credit for solar energy and small hydropower systems (per SC IL #09-16)?
South Carolina allows an income tax credit equal to 25% of the cost of a solar energy system or a small hydropower system that a taxpayer purchases and installs in or on a South Carolina facility the …
Did a federal Cash for Clunkers voucher reduce the South Carolina sales-tax base for a new vehicle?
No. The dealer's federal voucher payment and the buyer's payment both entered taxable proceeds. The separate salvage value allowed for the trade-in was excluded.
What is South Carolina's tax interest rate for the period ending December 31, 2009 (per SC IL #09-15)?
4%. SC Information Letter #09-15 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through December 31, 2009. Interest is compounded daily, e…
Which federally deducted taxes had to be added back when computing South Carolina taxable income under the 2009 guidance?
State and local income taxes, income-based franchise taxes, and other taxes measured by or with respect to net income were not deductible for South Carolina purposes and had to be added back.
What were the significant South Carolina tax-law changes from the 2009 legislative session, as summarized by the Department (per SC IL #09-14)?
SC Information Letter #09-14 is the Department's brief summary of the significant tax and regulatory law changes enacted in South Carolina's 2009 legislative session, organized into categories: (1) in…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #09-13)?
Use the index attached to SC Information Letter #09-13 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 through June 2009, and it explains …
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #09-12)?
Use the citator attached to SC Information Letter #09-12. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…
Which South Carolina tax regulations did the General Assembly approve in 2009 (per SC IL #09-11)?
SC Information Letter #09-11 announces that the General Assembly approved three tax regulation proposals on May 13, 2009, effective when published in the State Register on June 26, 2009: Regulation 11…
How did South Carolina's 2009 guidance source and administer local sales and use taxes and Catawba Tribal tax?
Under this superseded guide, qualifying retailers collected Department-administered local tax for the delivery jurisdiction, while purchasers handled uncollected use tax where property was first used.…
When did paying an individual from nonprofit sales proceeds cause a South Carolina nonprofit to lose its sales-tax exemption?
The exemption was lost for sales tied to percentage-of-proceeds payments to an artist, shop manager, or event promoter. Donated or purchased goods, volunteers, and reasonable fixed wages could qualify…
Are guest units rented by a South Carolina retirement community to residents' family and friends subject to accommodations tax?
Yes. Nightly, weekly, and monthly guest-unit rentals were taxable accommodations unless the same unit was supplied to the same person for at least 90 continuous days or another exemption applied.
Is South Carolina's Energy Star sales tax holiday still in effect (per SC IL #09-10)?
The Energy Star sales tax holiday has been eliminated and will not take place. SC Information Letter #09-10 explains that the 2008 General Assembly created a month-long Energy Star Sales Tax Holiday —…
When is South Carolina's 2009 sales tax holiday and what is exempt (per SC IL #09-9)?
August 7-9, 2009. SC Information Letter #09-9 sets South Carolina's 2009 sales tax holiday for the weekend beginning Friday, August 7, 2009 at 12:01 a.m. and ending Sunday, August 9, 2009 at midnight.…
What is South Carolina's tax interest rate for the period ending September 30, 2009 (per SC IL #09-7)?
4%. SC Information Letter #09-7 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through September 30, 2009. Interest is compounded daily, e…
Are late-payment fees charged by South Carolina utilities included in taxable gross proceeds?
Usually yes for taxable cable and telephone service because a default charge was not a finance charge. But late fees on electricity or natural-gas bills were expressly excluded from tax.
Are portable-toilet rental and servicing charges subject to South Carolina sales and use tax?
Yes, but only 30% of the total was taxable under the ruling. The toilet was rented tangible property, servicing fees were part of the rental, and a statute exempted the other 70%.
What are South Carolina's latest state and county per capita income figures used for tax incentives (per SC IL #09-6)?
$31,884 statewide. SC Information Letter #09-6 publishes the most recently available per capita personal income figures for South Carolina — $31,884 for the state, plus a figure for every county — whi…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #09-5)?
Use the index attached to SC Information Letter #09-5 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 through March 2009, and it explains …
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #09-4)?
Use the citator attached to SC Information Letter #09-4. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
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.