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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When is South Carolina's 2026 sales tax holiday, and which items are tax-free?
South Carolina's 2026 sales tax holiday runs from 12:01 a.m. Friday, August 7, 2026 through midnight Sunday, August 9, 2026. During that 72-hour window, eligible clothing and accessories, footwear, sc…
Do candy and soft drinks stay exempt from South Carolina sales tax even though the state is removing them from SNAP eligibility?
Yes. South Carolina exempts unprepared food (groceries) from sales tax under S.C. Code Ann. § 12-36-2120(75). Effective August 31, 2026, South Carolina's Healthy Food SC demonstration project removes …
If I rent out equipment — an inflatable, a mechanical bull, construction equipment, a gaming trailer — and my staff stays with it, is that a taxable rental or a nontaxable service in South Carolina?
It depends on whether you truly operate the equipment. In South Carolina, renting or leasing tangible personal property is a taxable sale (6%), but if you furnish an OPERATOR who uses skill to control…
If a South Carolina retailer rounds a cash total because pennies are unavailable, should it recalculate the sales tax using the rounded amount?
No. When pennies are unavailable, a South Carolina retailer may round the final cash amount up or down, but the Department says the sales tax due must still be calculated from the original sales price…
In South Carolina, do people 85 and older really pay less sales tax, and how do they actually get the lower rate at the register?
Yes, but only if they ask for it. South Carolina gives individuals 85 years of age or older a 1-percentage-point cut in the STATE sales and use tax rate (so 5% instead of 6%) on tangible personal prop…
When a South Carolina dinner theater charges one ticket price for a meal plus a show, is the ticket taxed as a meal, as an admission, or both?
Both. A dinner attraction show — one ticket price that buys admission to watch a show AND a meal — has two 'true objects,' the meal and the entertainment, and neither is merely incidental to the other…
What can a South Carolina farmer buy without paying sales tax, and how does the SCATE card work?
A lot, but usually only with a SCATE card and only for agricultural BUSINESS use. South Carolina exempts many farm purchases from state (and Department-collected local) sales and use tax across eight …
When one company hauls in and sets up scaffolding for another company's insulation crew, who owes South Carolina sales tax — and is any of it a taxable rental?
It depends which transaction you mean. When the insulation installer (XYZ) uses scaffolding to do its installation job for a customer, that's NOT a taxable rental to the customer — the true object is …
What major South Carolina tax law changes came out of the 2025 legislative session?
This Information Letter is the Department's plain-language summary of the significant tax law changes enacted in South Carolina's 2025 legislative session, organized into income/bank/withholding, prop…
When does a South Carolina retailer owe sales tax after taking merchandise out of resale inventory for its own use?
A South Carolina retailer generally makes a taxable retail sale when it takes property bought wholesale out of inventory for its own use or consumption. The tax base is usually the item's fair market …
When does South Carolina charge sales tax instead of the Infrastructure Maintenance Fee on boat, farm, and utility trailers?
Boat trailers under 2,500 pounds, farm trailers, and other utility trailers are subject to South Carolina state and local sales or use tax—not the Infrastructure Maintenance Fee—when they are privatel…
What are the major South Carolina tax law changes from the 2024 legislative session?
SC Information Letter 24-16 summarizes the major South Carolina tax changes enacted in the 2024 legislative session. Highlights: South Carolina conformed its income tax to the Internal Revenue Code as…
Do South Carolina students pay sales tax when they use their meal-plan 'flex dollars' to buy food on campus?
No — not on food. The Department treats board-plan 'flex dollars' the same as a traditional meal plan: students buy them from the university at the start of the term, and the balance is drawn down as …
When was South Carolina's 2024 sales tax holiday, and which items were tax-free?
South Carolina's 2024 sales tax holiday ran from 12:01 a.m. Friday, August 2, 2024 through midnight Sunday, August 4, 2024. During this annual 72-hour holiday under S.C. Code Ann. § 12-36-2120(57), el…
Are the sales and use tax exemption and $750 income tax credit for energy efficient manufactured homes still available in South Carolina?
No. Both incentives for energy efficient manufactured homes ended. The total sales and use tax exemption under S.C. Code § 12-36-2110(B) and the $750 nonrefundable income tax credit under S.C. Code § …
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…
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…
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-…
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…
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…
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…
If my South Carolina plant is contractually obligated to deliver the goods to my customer at a point outside the state, do I owe South Carolina sales tax on that sale?
No. Under S.C. Code § 12-36-2120(36), a sale of tangible personal property is exempt from South Carolina sales tax when the seller, by the contract of sale, is obligated to deliver the goods to the bu…
When are eyeglasses and eye-care charges taxable in South Carolina?
An optician's retail sale of prescription eyeglasses is taxable on total gross proceeds, including insurance payments. An ophthalmologist's or optometrist's professional charges to a patient—including…
What major South Carolina tax-law changes did the 2021 legislative session make?
SC Information Letter #21-24 summarizes major South Carolina tax and regulatory changes enacted in 2021. Act 87 updated state conformity to the Internal Revenue Code through December 31, 2020, while l…
When are optional equipment warranties and repair-part withdrawals taxable in South Carolina?
For the requesting medical-equipment manufacturer, an optional extended warranty sold as part of the equipment sale is taxable as part of gross proceeds or sales price, even if billed later. A separat…
Are tariff costs and tariff surcharges included in South Carolina's sales or use tax base?
A tariff cost is included in taxable gross proceeds or sales price when the seller or another party is the importer and passes the cost to the purchaser, whether the amount is embedded in the price or…
When was South Carolina's 2020 sales-tax holiday, and which purchases qualified for the state and local tax exemption?
South Carolina's 2020 sales-tax holiday ran from 12:01 a.m. Friday, August 7 through midnight Sunday, August 9. Eligible purchases were free from the 6% state sales and use tax and Department-collecte…
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…
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,…
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 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 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…
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…
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…
When did South Carolina's infrastructure maintenance fee replace sales tax on vehicles and trailers under RR 18-1?
For sales beginning July 1, 2017, a motor vehicle, motorcycle, trailer, semitrailer, or other item required to be registered with the South Carolina DMV generally became subject to the infrastructure …
How does the new infrastructure maintenance fee change sales tax on vehicle sales for South Carolina dealers effective July 1, 2017 (per SC IL #17-10)?
SC Information Letter #17-10 (Revised) is a notice to motor vehicle, motorcycle, and trailer dealers and retailers about the new infrastructure maintenance fee (IMF) under Act No. 40, effective July 1…
What tax and fee changes take effect July 1, 2017 under South Carolina's Infrastructure and Economic Development Reform Act (per SC IL #17-8)?
SC Information Letter #17-8 summarizes the tax and fee changes under the South Carolina Infrastructure and Economic Development Reform Act (Act No. 40, enacted May 10, 2017) that become effective July…
When is South Carolina's 2017 sales tax holiday and what items are exempt (per SC IL #17-7)?
South Carolina's 2017 sales tax holiday runs from 12:01 a.m. Friday, August 4, 2017 through midnight Sunday, August 6, 2017. During that three-day weekend, the 6% state sales and use tax and any appli…
What were the significant South Carolina tax-law changes from the 2016 legislative session, as summarized by the Department (per SC IL #16-11)?
SC Information Letter #16-11 is the Department's brief summary of the significant tax and regulatory law changes enacted in South Carolina's 2016 legislative session, organized into four categories: (…
Are customer charges for streaming television, movies, music, and similar content taxable in South Carolina?
Yes. The ruling treated charges for streaming television programs, movies, music, and similar content as taxable South Carolina communication services. The result was the same whether the customer pai…
When is South Carolina's 2016 sales tax holiday and what items are exempt (per SC IL #16-6)?
South Carolina's 2016 sales tax holiday runs from 12:01 a.m. Friday, August 5, 2016 through midnight Sunday, August 7, 2016. During that three-day weekend, the 6% state sales and use tax and any appli…
Are a utility-scale solar facility's electricity sales for resale subject to South Carolina sales tax or electric power tax?
Electricity sold by a utility-scale solar generating facility to an electric utility or cooperative exclusively for resale is a wholesale sale, so South Carolina sales and use tax does not apply. The …
What were the significant South Carolina tax-law changes from the 2015 legislative session, as summarized by the Department (per SC IL #15-11)?
SC Information Letter #15-11 is the Department's brief summary of the significant tax and regulatory law changes enacted in South Carolina's 2015 legislative session, organized into categories: (1) in…
What historical rules did SC Revenue Ruling 15-11 give for purchases by government employees, diplomats, and nonprofit employees?
Under this superseded ruling, a federal employee's official purchase was exempt only when the federal government was the purchaser through direct billing, a centrally billed card, or a federal check; …
When is South Carolina's 2015 sales tax holiday and what items are exempt (per SC IL #15-7)?
South Carolina's 2015 sales tax holiday runs from 12:01 a.m. Friday, August 7, 2015 through midnight Sunday, August 9, 2015. During that three-day weekend, the 6% state sales and use tax and any appli…
Do owners who rent out South Carolina vacation properties through 'rent by owner' websites owe sales and accommodations tax (per SC IL #15-4)?
Yes. SC Information Letter #15-4 reminds owners who rent South Carolina vacation properties — including through 'rent by owner' vacation rental websites — that furnishing sleeping accommodations to tr…
Was the requesting taxpayer's web-based insurance-claims system taxable, or excluded as data processing?
The charges were not taxable for the specific service described because the provider's personnel collected insurance-claim data from multiple carriers, checked and corrected it, converted it to a stan…
Were cloud services that processed and routed calls inside customers' phone systems taxable communications in SC PLR 14-4?
Yes for the requesting taxpayer's service. DOR treated monthly charges for cloud-based call processing and routing, voice and video support, voicemail, audio and web conferencing, presence, and mobili…
Which in-state activities did SC Revenue Ruling 14-4 identify as creating sales-and-use-tax nexus?
RR 14-4 is a detailed physical-presence nexus checklist covering South Carolina property, inventory, offices, representatives, installation and repair work, affiliates, delivery, printers, advertising…
What were the significant South Carolina tax-law changes from the 2014 legislative session, as summarized by the Department (per SC IL #14-12)?
SC Information Letter #14-12 is the Department's brief summary of the significant tax and regulatory law changes enacted in South Carolina's 2014 legislative session, organized into categories: (1) in…
Were the requesting taxpayer's cloud computing, data storage, and related data-transfer usage fees taxable in South Carolina?
No for the specific services described. DOR concluded that the taxpayer's scalable virtual computing service, cloud data-storage service, and associated upload, download, and internal data-movement fe…
When is South Carolina's 2014 sales tax holiday and what items are exempt (per SC IL #14-10)?
South Carolina's 2014 sales tax holiday runs from 12:01 a.m. Friday, August 1, 2014 through midnight Sunday, August 3, 2014. During that three-day weekend, the 6% state sales and use tax and any appli…
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.