Sales and Use Taxes in South Carolina

April 13, 2006

	Visited: 147
	Not rated
	Rate:

In South Carolina a tax is imposed on persons selling at retail or furnishing or leasing any tangible personal property. Retail sales include all sales of tangible personal property except wholesale sales. In addition, the following services are taxable in South Carolina:

the rental of transient sleeping accommodations (less than 90 continuous days)
property manufactured in the state for in-state use or consumption
sales of electricity
telephone services, etc.
furnishing laundry, cleaning, dyeing, or pressing services

Sales and use tax rate. The South Carolina gross receipts are taxed at 4 percent plus an additional 1 percent on all persons under age 85. If you happen to be over 85, you are qualified for the 1 percent exemption and are issued an identity card. The general state sales tax rate increases to 6 percent on June 1, 2007.

The sales tax rate is 7 percent on the gross proceeds from the rental of transient accommodations, including campgrounds.

Effective October 1, 2006, the sales tax rate for unprepared food items purchased with U.S. Department of Agriculture food coupons is reduced from the general state sales tax rate to 3 percent.

Tax-exempt items. South Carolina has many specific items that are exempt from sales tax — for example, certain prescription medications are exempt from South Carolina sales tax. You'll want to check and see if you are exempt from the sales tax.

Responsibility for paying sales tax. In South Carolina the sales tax is imposed on persons engaged in the business of selling tangible personal property at retail in the state. A retailer may add the tax to the sales price, but the seller's inability to collect or the customer's refusal to pay the tax does not relieve the retailer of the tax liability.

Use tax. In South Carolina a use tax is imposed on the storage, use, or consumption of tangible personal property.

Responsibility for collecting use tax. The liability for use tax is imposed on persons storing, using, or consuming in South Carolina tangible personal property purchased at retail. The person is relieved of liability if they obtain a receipt from a retailer maintaining a place of business in South Carolina or who is authorized to collect use tax for the state.

Obtaining tax permits in South Carolina. In South Carolina, retailers must obtain a license for each permanent branch and pay a $50 license fee. The license fee for artists and craftsmen selling their products at shows is $20. Transient or temporary retailers must pay a $50 fee for a retail license. The tax permits are obtained from the South Carolina Department of Revenue and Taxation.

Leases. The terms retailer and seller include persons renting, leasing, or furnishing tangible personal property for a consideration. The gross receipts received from the rental or lease of tangible personal property are subject to sales or use tax in South Carolina.

The following discussions address additional sales and use tax issues that many small business owners face: