South Carolina State Tax Rulings

What South Carolina tax consequences followed a federal Internal Revenue Code § 338(h)(10) election under the 2009 guidance?

The federal election automatically applied for South Carolina income tax, but the deemed asset sale created no sales tax or deed recording fee. Income allocation, credits, and personal-property basis …

Was an entire homeowners' monthly assessment taxable when it funded both recreational amenities and general community services?

No. Only the portion paying for access to and use of amusement facilities was taxable. The club allocated tax using amusement-related direct and indirect expenses divided by total expenses.

Under the 2009 South Carolina guidance, who could claim the refundable college tuition income-tax credit and how was it calculated?

A qualifying student or the person entitled to claim that student as a federal dependent could claim 25% of qualifying tuition after scholarships, subject to the ruling's historical eligibility rules …

What is South Carolina's tax interest rate for the period ending June 30, 2009 (per SC IL #09-3)?

4%. SC Information Letter #09-3 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2009 through June 30, 2009. Interest is compounded daily, except…

Were monthly charges for a repair plan covering an existing connected residential water heater subject to South Carolina sales tax?

No. The connected water heater was treated as real property, while South Carolina taxed the described warranty and maintenance contracts only when they covered tangible personal property.

When are South Carolina hotel stays for government, diplomatic, nonprofit, or Red Cross travelers exempt from sales tax?

Exemption depended on the purchaser and payment method. Direct federal, qualifying diplomat, federal-credit-union, Red Cross, and one narrow hospital category could qualify; most employee-paid and sta…

When is a purchase made with a federal government credit card exempt from South Carolina sales and use tax?

A purchase was exempt when the U.S. government was billed and paid directly. It was taxable when the federal employee was personally billed and later reimbursed.

How are South Carolina counties ranked for the job tax credit for 2009, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #09-1)?

What is South Carolina's tax interest rate for the period January 1, 2009 through March 31, 2009 (per SC IL #08-25)?

5%. SC Information Letter #08-25 sets South Carolina's interest rate on tax underpayments and overpayments at 5% for the period January 1, 2009 through March 31, 2009. Interest is compounded daily, ex…

Which items qualified for South Carolina's 2008 Second Amendment sales-tax holiday, and what later happened to the law?

Qualifying handguns, rifles, and shotguns sold during the two-day 2008 holiday were exempt, including associated delivery and engraving charges. Separately sold ammunition, parts, attachments, supplie…

Which machines used to develop and mass-produce genetically enhanced tree seedlings qualified for South Carolina exemptions under this PLR?

The operation was farming, not processing. Machines used to mass-produce seedlings qualified as farm machinery, and machines used directly and primarily to develop new or improved seedlings qualified …

How can taxpayers find South Carolina advisory opinions by subject (per SC IL #08-24)?

Use the index attached to SC Information Letter #08-24 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 through September 2008, and it expl…

How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #08-23)?

Use the citator attached to SC Information Letter #08-23. 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 latest statewide per capita income figure used for tax incentives (per SC IL #08-22)?

$31,048. SC Information Letter #08-22 publishes the updated statewide per capita personal income figure for South Carolina — $31,048 — which the Department uses to test qualification for various South…

Which alcohol-server training programs does South Carolina recognize as a mitigating circumstance for ABL penalties (per SC IL #08-21)?

SC Information Letter #08-21 lists the alcohol-server training programs the Department recognizes for purposes of mitigating penalties under the alcoholic beverage licensing (ABL) laws. Under the pena…

Did South Carolina extend tax filing and payment relief to victims of Hurricanes Gustav and Ike (per SC IL #08-20)?

Yes. SC Information Letter #08-20 announces that the South Carolina Department of Revenue will grant the same tax relief the IRS provided to victims of Hurricanes Gustav and Ike. The IRS extended, unt…

What is South Carolina's tax interest rate for the period October 1, 2008 through December 31, 2008 (per SC IL #08-18)?

6%. SC Information Letter #08-18 sets South Carolina's interest rate on tax underpayments and overpayments at 6% for the period October 1, 2008 through December 31, 2008. Interest is compounded daily,…

What were the significant South Carolina tax law changes enacted in the 2008 legislative session (per SC IL #08-17)?

SC Information Letter #08-17 is the Department's summary of the significant tax and regulatory law changes enacted in South Carolina's 2008 legislative session, organized into four parts: (1) income t…

What sales and use tax exemptions were available to qualifying motion picture companies under South Carolina's 2008 guidance?

A certified production expecting at least $250,000 of South Carolina spending within 12 months could exempt qualifying in-state production expenditures from state and Department-administered local sal…

What does South Carolina Regulation 117-337 do for the unprepared-food sales tax exemption (per SC IL #08-16)?

SC Information Letter #08-16 announces that on June 20, 2008 the General Assembly approved SC Regulation 117-337 (the Food Tax Regulation), which became official upon publication in the State Register…

How were horse trailers, stock trailers, and trailers with camper packages taxed under South Carolina's 2008 guidance?

Horse trailers received the historical 5% rate capped at $300, while stock trailers generally paid 6% plus applicable local tax. A horse or stock trailer primarily designed as temporary living quarter…

When did withdrawing wholesale inventory for business use, employee use, samples, or giveaways trigger South Carolina sales or use tax?

A South Carolina withdrawal, use, or consumption of wholesale inventory was itself a taxable retail sale measured by fair market value. A withdrawal outside the state followed by South Carolina use tr…

When did firefighting equipment share a fire truck's historical South Carolina $300 maximum tax under the 2008 ruling?

Equipment such as ladders, hoses, extinguishers, oxygen tanks, and axes shared the fire truck's historical 5%-or-$300 treatment when supplied with the vehicle and included in its purchase price. Prote…

Was an optional vehicle service contract included in automobile lease payments exempt from South Carolina sales and use tax under this PLR?

Yes, on the stated facts. The optional motor vehicle service contract was exempt whether its price was separately stated in the lease or allocated at a reasonable retail fair market value. The lease i…

How can taxpayers find South Carolina advisory opinions by subject (per SC IL #08-15)?

Use the index attached to SC Information Letter #08-15 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to June 30, 2008, and it explains t…

How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #08-14)?

Use the citator attached to SC Information Letter #08-14. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…

Under the historical 2008 guidance, when did South Carolina collect casual excise tax or use tax on vehicles, boats, motors, airplanes, and trailers?

Casual excise tax generally applied when South Carolina issued title or ownership proof after a non-retailer sale of a vehicle, motorcycle, boat, motor, or airplane. Use tax generally applied to prope…

How were boats, boat motors, and boat trailers taxed when sold separately or together under South Carolina's 2008 ruling?

A boat, including a qualifying permanently attached motor, received the historical 5% rate capped at $300. A motor or ordinary boat trailer sold separately was taxed at 6%, and a trailer bundled with …

Is South Carolina's sales tax rebate for alternative fuel vehicles and conversion equipment still available (per SC IL #08-13)?

No — it was eliminated. SC Information Letter #08-13 announces that the sales tax rebate for purchasers and lessees of certain alternative fuel and fuel-efficient vehicles, and for purchasers of certa…

When is South Carolina's 2008 sales tax holiday and what is exempt (per SC IL #08-11)?

August 1-3, 2008. SC Information Letter #08-11 sets South Carolina's 2008 sales tax holiday for the weekend beginning Friday, August 1, 2008 at 12:01 a.m. and ending Sunday, August 3, 2008 at midnight…

How did the June 2008 South Carolina Supreme Court one-subject-rule decision affect the 2007 tax legislation summarized in SC IL #07-16 (per SC IL #08-12)?

SC Information Letter #08-12 reports the effect of the South Carolina Supreme Court's June 23, 2008 opinion in The South Carolina Public Interest Foundation v. Harrell (Opinion No. 26506), which revie…

Which South Carolina Department of Revenue regulations did the General Assembly approve in June 2008 (per SC IL #08-10)?

SC Information Letter #08-10 announces the Department of Revenue regulations the General Assembly approved on June 4, 2008, which became official upon publication in the State Register on June 27, 200…

What is South Carolina's tax interest rate for the period July 1, 2008 through September 30, 2008 (per SC IL #08-9)?

5%. SC Information Letter #08-9 sets South Carolina's interest rate on tax underpayments and overpayments at 5% for the period July 1, 2008 through September 30, 2008. Interest is compounded daily, ex…

What are South Carolina's latest state and county per capita income figures used for tax incentives (per SC IL #08-8)?

$31,013 statewide. SC Information Letter #08-8 publishes the most recently available per capita personal income figures for South Carolina — $31,013 for the state, plus a figure for every county — whi…

Under South Carolina's 2008 guidance, who owed use tax on untaxed out-of-state purchases brought into the state?

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 paid t…

How did South Carolina's one-percentage-point state sales-tax reduction work for purchasers age 85 or older under the 2008 guidance?

A purchaser age 85 or older could receive a one-percentage-point reduction in the state tax on qualifying personal-use purchases by buying the item personally, requesting the reduction at the sale, an…

Is the 2008 federal economic stimulus rebate taxable in South Carolina, and does receiving it require a South Carolina return (per SC IL #08-7)?

Not taxable, and it does not by itself trigger a South Carolina return. SC Information Letter #08-7 explains that the 2008 federal economic stimulus rebate is not subject to South Carolina income tax …

How can taxpayers find South Carolina advisory opinions by subject (per SC IL #08-6)?

Use the index attached to SC Information Letter #08-6 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to March 31, 2008, and it explains t…

How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #08-5)?

Use the citator attached to SC Information Letter #08-5. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …

Did a federal television-converter-box coupon reduce the South Carolina sales or use tax base under the 2008 ruling?

No. The retailer had to include both the customer's payment and the federal reimbursement in gross proceeds or sales price. The coupon did not make the transaction an exempt sale to the federal govern…

What is South Carolina's tax interest rate for the period April 1, 2008 through June 30, 2008 (per SC IL #08-4)?

6%. SC Information Letter #08-4 sets South Carolina's interest rate on tax underpayments and overpayments at 6% for the period April 1, 2008 through June 30, 2008. Interest is compounded daily, except…

How much qualifying research-and-development use did a machine need for South Carolina's sales-tax exemption under the 2008 ruling?

More than 50% of the machine's total use had to be direct qualifying research and development. Teaching, administration, indirect support, and work outside experimental or laboratory development count…

Was a manufacturer's annual charge for cylinders holding exempt welding gas also exempt under this South Carolina PLR?

Yes, on the stated facts. The welding gas qualified for the manufacturing exemption, and the filled cylinders were incidental containers used to deliver that gas, so the annual cylinder charge shared …

Which South Carolina Department of Revenue regulations did the General Assembly approve in early 2008 (per SC IL #08-3)?

SC Information Letter #08-3 announces the Department of Revenue regulations the General Assembly approved on January 29, 2008, which became official upon publication in the State Register on February …

How are South Carolina counties ranked for the job tax credit for 2008, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #08-1)?

SC Information Letter #08-1 publishes South Carolina's 2008 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…

Under the 2008 guidance, which pass-through income qualified for South Carolina's reduced active-business income-tax rate?

Eligible individuals, estates, and trusts could elect the reduced rate for South Carolina active trade or business income from a sole proprietorship, partnership, S corporation, or qualifying LLC. Pas…

Which limited South Carolina contacts did the Department say would not, by themselves, create income-tax nexus under its 2008 guidance?

Many isolated or passive contacts did not create income-tax nexus by themselves, including in-state product sales without other activity, bank accounts, certain loans, short internal meetings, and pro…

How can taxpayers find South Carolina advisory opinions by subject (per SC IL #07-23)?

Use the index attached to SC Information Letter #07-23 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to December 31, 2007, and it explai…

How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #07-22)?

Use the citator attached to SC Information Letter #07-22. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…

Were photo-lab prints produced and shipped for professional photographers' online customers wholesale sales under this SC PLR?

Yes, when the photographer resold the prints and the lab documented wholesale status or obtained a valid resale certificate. Shipping, handling, and credit-card processing charged with the wholesale p…

What is South Carolina's tax interest rate for the period January 1, 2008 through March 31, 2008 (per SC IL #07-21)?

7%. SC Information Letter #07-21 sets South Carolina's interest rate on tax underpayments and overpayments at 7% for the period January 1, 2008 through March 31, 2008. Interest is compounded daily, ex…

Was a service that converted, edited, proved, and electronically filed customers' SEC documents taxable as communications under this SC PLR?

No, on the stated facts. The true object was the provider's personal service of converting, editing, proving, and making the customer's documents SEC-compliant; electronic EDGAR filing was incidental.…

Who owed South Carolina use tax on untaxed Internet, catalog, travel, and other out-of-state purchases under RR 07-5?

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 enough tax had not already been paid. Tax legally pa…

Which foods became exempt from South Carolina's state sales and use tax on November 1, 2007 under RR 07-4?

Unprepared food that could lawfully be bought with USDA food benefits became exempt from state sales and use tax, even when purchased with cash or from a retailer that did not accept benefits. Prepare…

How can taxpayers find South Carolina advisory opinions by subject (per SC IL #07-20)?

Use the index attached to SC Information Letter #07-20 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to October 24, 2007, and it explain…

How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #07-19)?

Use the citator attached to SC Information Letter #07-19. 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 latest statewide per capita income figure used for tax incentives (per SC IL #07-18)?

$29,688. SC Information Letter #07-18 publishes the updated statewide per capita personal income figure for South Carolina — $29,688 — which the Department uses to test qualification for various South…

How did South Carolina's 2007 physical-presence-era ruling analyze activities that could create sales and use tax nexus?

The ruling evaluated each listed South Carolina contact separately under assumed retail sales and no other in-state activity. It warned that fact changes or multiple contacts could create nexus even w…

What is South Carolina's tax interest rate for the period July 1, 2006 through December 31, 2007 (per SC IL #07-17)?

8%. SC Information Letter #07-17 sets South Carolina's interest rate on tax underpayments and overpayments at 8% for the period July 1, 2006 through December 31, 2007. Interest is compounded daily, ex…

What were the significant South Carolina tax law changes enacted in the 2007 legislative session (per SC IL #07-16)?

SC Information Letter #07-16 is the Department's summary of the significant tax and regulatory changes enacted in South Carolina's 2007 legislative session, organized into four parts: (1) income taxes…