Department of Revenue

117-315. Newspapers and Newsprint Paper. The following addresses the exemptions applicable to newspapers, newsprint paper, and newspaper publishers.

117-315.1. Newspapers. Section 12-36-2120(8) exempts from the measure of the tax the gross proceeds of the sale of newspapers. In order to qualify as a newspaper the publication must meet at least the following requirements: 1. It must be commonly and ordinarily considered and ac…

117-315.2. Newsprint Paper. Section 12-36-2120(8) also exempts from the measure of the tax the gross proceeds of the sale of newsprint paper. ‘‘Newsprint paper’’ is construed to include only that paper on which news is printed by a newspaper. This property is specifically exempte…

117-315.3. Newspaper Publishers. Newspapers are concerned with three distinct and separate activities in the production and publication of the finished product—a newspaper. While these operations may be interwoven in the overall production, for sales and use tax purposes, a separ…

117-316. Books. Code Section 12-36-2120(3) provides exemption for the sale of textbooks, books, magazines, periodicals, newspapers, and access to on-line information systems used in a course of study in primary and secondary schools and institutions of higher learning or for stud…

117-316.1. Textbooks. The term ‘‘textbook’’ is construed to include only books purchased for and used in elementary schools, high schools and institutions of higher learning. Included within the definition of textbooks are school library books, encyclopedias and dictionaries. Als…

117-316.2. Sale of Books to Libraries. With respect to the exemption for books sold to legally established, public supported State, County and/or Regional libraries, the term ‘‘books’’ is construed to include filmstrips of a type in general use by elementary schools, high schools…

117-317. Sales of Repossessed Property. The following addresses the application of the sales and use tax to repossessed property.

117-317.1. Finance Companies and Other Lending Institutions. Finance companies and other lending institutions are deemed to be retailers when making sales of tangible personal property physically or constructively repossessed in claim and delivery proceedings, by peaceful surrend…

117-317.2. Retailers. Sales of tangible personal property physically or constructively repossessed by a retailer through the mechanics of claim and delivery proceedings, by peaceful surrender or otherwise are subject to the sales tax when resold either for cash or on new conditio…

117-318. Gross Proceeds of Sales and Sales Price. ‘‘Gross proceeds of sales’’ is the basis for calculating the sales tax and ‘‘sales price’’ is the basis for calculating the use tax. There are many issues that arise from determining what is or is not included in the basis for the…

117-318.2. Carrying and Finance Charges. When the seller has an established price for the goods he sells, that price is the amount to be included in gross proceeds of sales even though the established price may include an amount to cover a carrying charge. Where they seller has a…

117-318.3. Lay-away Sales. Amounts received in payment of the sales price of property held by the seller until the total amount of the sales price is paid to him are taxable in the month during which such amounts are received by the seller. In the event of the failure of the buye…

117-318.4. Withdrawals for Use—Renter. Where a person customarily rents tangible personal property and customarily withdraws the same for his own use, storage or consumption, a tax is due by such person on each withdrawal for use, the tax to be measured by the amount he would cus…

117-318.5. Gift Wrapping Charges. The gross proceeds proceeding or accruing from charges for gift wrapping of tangible personal property sold at retail are subject to the sales and/or use tax.

117-318.6. Gratuities. An amount or percentage, regardless of its designation, added to the price of meals pursuant to a requirement of the retailer furnishing such meals is a part of the sales price of such meals and must be included in the measure of the tax even though all or …

117-318.7. Bottle Deposits. Deposits required by retailers to insure return of reusable containers (bottles) are not subject to the sales tax.

117-318.8. Returned Merchandise and Restocking Fees (Effective October 1, 2008). The sales tax is imposed upon a retailer’s ‘‘gross proceeds of sales’’ which is defined at Code Section 12-36-90. Code Section 12-36-90(2)(b) specifically states that ‘‘gross proceeds of sales’’ does…

117-319. Warehousemen. Sales To: All property purchased for use in operating places of storage are subject to sales or use tax, whichever may apply, including all tickets, labels, receipt forms, heating or cooling equipment, fire protection equipment, pest control supplies and eq…

117-320. Use Tax. The use tax is imposed on the storage, use, or other consumption in this State of tangible personal property purchased at retail for storage, use, or other consumption in South Carolina.

117-320.1. Property Purchased and Used Without the State TTT Later Used in South Carolina. Where property purchased in another state and used outside the state of South Carolina, is later brought into the state for use, storage or consumption in South Carolina, the use tax will a…

117-320.2. Vehicles Replaced under Insurance Contracts. The use tax is due by the insured, measured by the purchase price of vehicles acquired out-of-state, whether acquired by the insured or the insurer under the terms of an insurance policy to replace destroyed or stolen vehicl…

117-321. Ships and Sales of Fuel, Lubricants and Mechanical Supplies to Ship. Code Section 12-36-2120 exempts from the tax ‘‘vessels and barges of more than fifty tons burden’’ and ‘‘fuel, lubricants, and supplies for use or consumption aboard ships in intercoastal trade or forei…

117-321.1. Sales of Fuel, Lubricants and Mechanical Supplies. Code Section 12-36-2120 exempts from payment of sales or use taxes the sale or use of fuels, lubricants and supplies for use or consumption aboard ships in intercoastal trade between ports of the state of South Carolin…

117-321.2. Dry Dock. A dry dock is subject to the sales or use tax, whichever applies. A dry dock is not a ‘‘vessel’’ nor is it a ‘‘barge’’ exempted from the sales or use tax. HISTORY: Added by State Register Volume 26, Issue No. 6, Part 2, eff June 28, 2002.

117-322. Casual and Isolated Sales. Casual or isolated sales by persons not engaged in the business of selling tangible personal property at retail are not subject to the sales or use tax. For purposes of administering this regulation, the term ‘‘casual’’ means occurring, encount…

117-323. Exemption of the Gross Proceeds of the Sale of Combustible Heating Material or Substances Used for Residential Purposes. Section 12-36-2120(33) exempts the gross proceeds of the sale of electricity, natural gas, fuel oil, coal or any other such combustible heating materi…

117-324. Dual Business. Operators of businesses who are both making retail sales and withdrawing for use from the same stock of goods are to purchase at wholesale all of the goods so sold or used and report both retail sales and withdrawals for use under the sales tax law. This r…

117-326. Savings and Loan Associations. Federal and State savings and loan associations and State building and loan associations are liable for the South Carolina use tax on purchases of tangible personal property for use, storage or consumption in this State. Conversely, license…

117-327. Leased Departments. Where a store has leased departments operated by other persons, each such person operating a leased department shall make a separate return, if he keeps his own books and makes his own collections on accounts. Where the store leasing such department k…

117-328. Radio and TV Stations. Code Section 12-36-2120(26) exempts from the tax the sale of ‘‘all supplies, technical equipment, machinery and electricity sold to radio and television stations, and cable television systems, for use in producing, broadcasting or distributing prog…

117-329. Communications Services. The purpose of this regulation is to provide guidance as to the application of the sales and use tax to the wide variety of communications services available to individual consumers and to businesses. It also lists examples of communication servi…

117-329.1. Ways or Means for Transmission of Voice or Messages. Communications are subject to sales and use taxes pursuant to Code Sections 12-36-910(B)(3) and 12-36-1310(B)(3), which impose the tax on the ‘‘gross proceeds accruing or proceeding from the charges for the ways or m…

117-329.2. Prepaid Wireless Calling Arrangements. Code Section 12-36-910(B)(5) and Code Section 12-36-1310(B)(5) impose the sales and use tax on the ‘‘gross proceeds accruing or proceeding from the sale or recharge at retail for prepaid wireless calling arrangements.’’ ‘‘Prepaid …

117-329.4. Examples of Taxable Communications Services. The following are examples of communication services that are subject to the sales and use tax (unless otherwise listed as non-taxable in 117-329.5 or otherwise exempt or excluded under the law): (a) Telephone services, incl…

117-329.5. Examples of Non-Taxable Communications Services. The following are examples of communication services are not subject to the sales and use tax: (a) Telephone services specifically exempted under Code Section 12-36-2120(11), such as toll charges between telephone exchan…

117-330. Automatic Data Processing. Automatic Data Processing Equipment—Hardware Receipts from the sale or lease of automatic data processing equipment are subject to the sales or use tax. Also includible in the tax base are charges for the sale or lease of assembler, compiler, u…

117-331. Airport Fixed Based Operators. Airport fixed base operators do business in a number of ways. In addition to making sales of new and used aircraft, charter service is available, in some instances aircraft are available for lease or rental or flight instruction, and gasoli…

117-332. Medicines, Prosthetic Devices and Hearing Aids. Code Section 12-36-2120(28) exempts from the sales and use taxes: (a) medicines and prosthetic devices sold by prescription, prescription medicines and therapeutic radiopharmaceuticals used in the treatment of cancer, lymph…

117-333. Donors and Goods Given Away for Advertising Purposes. Donors of tangible personal property are regarded as consumers thereof, and the tax applies to the gross proceeds from the sale of the property to them. Gross proceeds from the sale of goods which are to be given away…

117-334. Interstate Commerce. The purpose of this regulation is to determine which tax applies, the sales tax or the use tax, when tangible personal property is shipped into, or otherwise brought into, South Carolina and to address the application of the tax when goods are shippe…

117-334.2. Goods coming into this State - Use Tax: (A) When tangible personal property is purchased for use or consumption in this State and delivery is made in this State, such sale is subject to the use tax if the order for future delivery is sent by the purchaser directly to t…

117-334.3. Goods coming into this State and Delivered onto the Catawba Indian Reservation. When tangible personal property is purchased for use or consumption on the Catawba Indian Reservation and delivery is made from a retail location outside of South Carolina to the Catawba In…

117-334.4. Application of the Sales or Use Tax under Other Circumstances. The application of either the sales tax or the use tax under circumstances not addressed in this regulation will be determined on a case by case basis. The determination as to which tax will apply will cons…

117-334.5. Goods shipped from this State. When tangible personal property is sold within the State and the seller is obligated to deliver it to the purchaser or to an agent or designee of the purchaser at a point outside of the State or to deliver it to a carrier or to the mails …

117-335. Manufactured Homes and Modular Homes. Manufactured homes and modular homes are taxed differently under the sales and use tax code.

117-335.1. Manufactured Homes The basis upon which the tax is calculated on a manufactured home (as defined in Code Section 40-29-20) is only sixty-five percent of the ‘‘gross proceeds of sales’’ as defined in Code Section 12-36-90. The maximum tax due on the sale of a manufactur…