Department of Revenue

117-1000. This regulation contains general annual report provisions.

117-1000.1. What Constitutes an Officer of a Corporation. An officer of a corporation is a person who by election or appointment is empowered to perform official functions of a corporation. By official functions is meant any duty devolving a President, Vice- President, Treasurer,…

117-1075. This regulation contains general provisions of the license fee imposed on gross receipts and property.

117-1075.1. Items Included in Gross Receipts. Gross receipts, as used in Section 12-20-100, include all receipts from operations within the State, and also other profit and loss items with a local situs. Intangible income from intangibles used in the conduct of the business withi…

117-1200. Alcoholic Liquor Taxes. Chapter 33 of Title 12 imposes various taxes on alcoholic liquors. The following subsections address various aspects of these taxes as administered by the South Carolina Department of Revenue.

117-1200.1. Sales to Governmental Reservations. Any wholesale liquor dealer is permitted to deliver from his stock of alcoholic liquors to Officer’s Clubs, Canteens, or other such organizations located on government reservations when such purchases are permitted under the regulat…

117-1200.2. Purchases by Retail Liquor Dealers. No retail liquor dealer shall be permitted to purchase any alcoholic liquors except from a licensed dealer in this State. The purchase, or negotiation for purchase, of alcoholic liquors from without the State by a retail dealer is s…

117-1200.3. Collection and Payment of Tax and the Maintaining of Records. The General Assembly in Section 12-33-250, provided for the collection and payment of the license taxes levied by Sections 12-33-230 and 12-33-240 in the same manner and under the same conditions as the tax…

117-1250. Beer and Wine Taxes. Article 7 of Chapter 21 of Title 12 imposes various taxes on beer and wine. The following subsections address various aspects of these taxes as administered by the South Carolina Department of Revenue.

117-1250.1. Sales or Exchanges with Other Wholesalers. Each wholesale beer and wine dealer shall report all sales purchases or exchanges of their products with other wholesale dealers to the Department on such forms as may be prescribed by the Department. Such information must be…

117-1250.2. Change in Distributors. It has been called to the attention of the Department by certain members of the General Assembly, who have filed statements thereabout with the said Department, that it was not the intention of the South Carolina General Assembly in enacting Se…

117-1300. Coin-operated Devices. Article 19 of Chapter 21 of Title 12 imposes various taxes on coin-operated and other devices as well as the owner of these devices. The following subsections address various aspects of these taxes as administered by the South Carolina Department …

117-1300.1. Application for License. Every person applying for a license under the provisions of Section 12-21-2720 shall, in making application for such license, specify the serial number, the manufacturer’s name, the model number and classification, of each machine to be licens…

117-1300.2. Free Play Feature. The words ‘‘which has a free-play feature’’ shall mean and include any machine which is designed and made with such feature by the manufacturer of such machine, provided, however, that where the mechanism constituting a free-play feature has been co…

117-1350. Deed Fee—Assumption of a Mortgage in the Conveyance of Real Property. South Carolina imposes a deed recording fee pursuant to Chapter 24 of Title 12. This fee is composed of two fees - a state fee and a county fee. The fee is collected by the office of the clerk of cour…

117-1400. Electric Power Tax - Classification of Industrial Customers. Hereafter, the South Carolina Department of Revenue will use Sections 31, 32, and 33 of the North American Industry Classification System (‘‘NAICS’’) Manual, as a guide to classify ‘‘industrial custom- ers,’’ …

117-1450. Motor Fuel Tax—LP Gas. When LP gas is used as a fuel in motor vehicles that are operated on the public highways and the amount of LP gas thus used cannot be determined using any other method, the following miles per gallon will be used for computing taxable gallons on t…

117-1500. Bank Tax. Chapter 11 of Title 12 imposes a franchise tax on banks. The following subsections address various aspects of this franchise tax as administered by the South Carolina Department of Revenue.

117-1500.1. Entire Net Income. The term ‘‘entire net income’’ as used in Section 12-11-10 shall include income derived from any source whatsoever including interest on obligations of the United States, the United States Government or its possessions or of any state and any politi…

117-1500.2. Method of Reporting. The net income of the taxpayer as provided for in Section 12-11-20 shall be computed on either a cash or an accrual basis. A bank may request permission to change from a cash to an accrual basis or from an accrual basis to a cash basis over a ten …

117-1500.3. Federal Income Tax Deduction. Banks reporting on a cash basis may deduct Federal income estimated tax payments in the year in which they are paid. Cash basis banks using a method other than above may convert by using ten year conversion period as permitted under SC Re…

117-1500.5. Mergers. A bank which merges into another bank or consolidates with one or more banks, must file a final return for a portion of the year prior to the merger or consolidation and pay the tax shown to be due thereon. The liability for filing the final return for the ba…

117-1550. Income Tax on Building and Loan Associations. Chapter 13 of Title 12 imposes an income tax on building and loan associations. The following subsections address various aspects of this income tax as administered by the South Carolina Department of Revenue.

117-1550.1. Determining Net Income of Building and Loan Associations. In accordance with Section 12-13-30, any additions to reserves which are required by law, regulation or direction of appropriate supervisory agency must be allowed as a deduction in determining net income but t…

117-1550.2. Earnings Paid to Shareholders. For the purposes of Section 12-13-20, a deduction shall be allowed for earnings paid to sharehold- ers in an amount equal to the earnings actually paid out and/or credited to each shareholder’s account. Earnings credited to a reserve acc…

117-1550.3. Measure of Tax. The income tax imposed by Section 12-13-30 shall be measured by the net income from all sources except interest income as is specifically exempted by law from such tax. Exempt income items are: (1) Income from obligations of the State of South Carolina…

117-1600. Cigarette Taxes. Chapter 21 of Title 12 imposes an excise tax on cigarettes. Chapters 47 and 48 of Title 11 impose certain reporting requirements on cigarette distributors. The following subsections address various aspects of the taxes imposed on cigarettes as well as r…

117-1600.1. Reporting Requirements. All distributors shall make a report to the Department of Revenue on a monthly basis with respect to sales of cigarettes on a form prescribed by the Department. The report shall be due on or before the 20th day of the month following the month …

117-1600.2. Stamps Required on Cigarettes. Tax Stamps (a) Each distributor of cigarettes taxable under Article 5 of Chapter 21 of Title 12 who first receives untaxed cigarettes for sale or distribution in South Carolina is subject to the tax imposed in S.C. Code Section 12-21-620…

117-1600.3. Exemptions and Refunds. The only refunds which will be made with respect to cigarette stamp taxes will be for the following: (1) Cigarettes shipped out of the geographic limits of the State of South Carolina in accordance with the provisions of Section 12-21-90; (2) D…

117-1600.4. Cigarettes Displayed in Vending Machines. Cigarettes displayed for sale in vending machines, where the design of such machine permits such arrangement, shall be so arranged that the cigarette tax stamp required to be affixed to each individual package is at all times …

117-1600.5. Stamping and Storage of Cigarettes in South Carolina by a Distributor. (A) Stamping Methods Distributors generally stamp and store cigarettes in one of two methods - a ‘‘Stamp-to-Order’’ method and an ‘‘Advanced Stamping’’ method. These methods can be briefly describe…

117-1600.6. Samples. Cigarettes shipped into South Carolina by manufacturers to representatives, who are licensed in accordance with Code Section 12-21-660, for promotional use shall be accompanied by an invoice stating the name of each brand, the number of packages of each brand…

117-1700. Definitions. This section provides general definitions to be used in administering property taxes.

117-1700.1. Property Defined. Section 1: Purpose: Section 12-43-230(c) that the Tax Commission shall provide by regulation a definition for real and personal property. This regulation is therefore adopted pursuant to this section so as to provide for a definition to be used by th…

117-1700.2. Definition of ‘‘Power Driven’’ Farm Machinery and Equipment. Article X, Section 1 of the South Carolina Constitution and Section 12-43-220(b) of the South Carolina Code of Laws provides for a separate classification for all power driven machinery and equipment, except…

117-1700.3. Definition of Utility. The word ‘‘utilities’’ is hereby defined to include but not necessarily be limited to (1) water companies; (2) power companies, whether hydroelectric, steam, atomic, or other kinds for the transmission of power; (3) electric light companies; (4)…

117-1700.4. Definition of Transportation Companies. ‘‘Transportation companies’’ are hereby defined to include but not necessarily be limited to (1) Railroad companies; (2) Pipeline companies; and (3) Express companies.

117-1700.5. Definition of Facility. A ‘‘facility’’ is generally a single physical location, where a taxpayer’s business is conducted or where its services or industrial operations are performed. Where two or more distinct and separate economic activities are performed at a single…

117-1700.6. Definition of Parsonage. This rule is adopted pursuant to the authority conferred by Sections 12-4-320(1) and 12-4-560 of the South Carolina Code of Laws, as amended, to further define a parsonage that is exempt from property taxation. A parsonage is a church owned re…

117-1700.7. Definition of Plant Site. A plant site shall consist of all land contiguous to a plant which is related to the overall manufacturing operation. It shall include all land on which personal property is located including but not limited to the following: parking lots, ma…

117-1720. Department of Revenue Responsibilities. These regulations are designed to address the Department of Revenue’s Responsibilities in the Area of Property Tax and How the Department Administers Its Responsibilities.

117-1720.1. [Reserved]

117-1720.2. General Requirements for Ratio Study. A. In accordance with Section 12-43-250 of the South Carolina Code of Laws, the Department of Revenue shall annually make a ratio study of all the counties in the State to determine if the level of appraisal and/or assessment and …

117-1720.3. Computation of Index of Taxpaying Ability for School District When Property is Under Appeal. Section 59-20-20 of the South Carolina Code of Laws as amended, requires the Department of Revenue to compute the index of taxpaying ability for each school district in South …

117-1740. County Administrative Requirements and Forms to Be Filed with the County. The purpose of these regulations are to define the general administrative requirements applicable to the counties in the administration of the property tax law and to provide information to be req…

117-1740.1. General Requirements for Building Permits. Section 1. Under the authority provided by Sections 12-43-240 and 12-4-550(1) of the South Carolina Code of Laws, building permits shall be issued for the entire county for each county in the State by the proper authorities d…

117-1740.2. Cadastral Maps and Parcel Identifiers. Section 1: Scope This regulation provides requirements for the development and maintenance of cadastral maps and parcel identifiers which will be used by the Assessors to locate, inventory and appraise all real property within th…

117-1740.3. General Requirements for Appraisal Records. Section 1. For the purposes of valuing property for ad valorem tax purposes, each county in the State shall keep the necessary records on all property to value such property in accordance with the laws of this State. The inf…

117-1740.4. Form to Provide Department of Revenue with Information for Ratio Studies (117-116). Under the authority provided for in Section 12-4-550(1) of the South Carolina Code of Laws, all counties shall furnish to the Department of Revenue the information provided for on form…