Department of Revenue

117-1760. Classification of Property - General Provisions as to Use of Property. The purpose of these regulations are to provide information about classifying companies and property for property tax purposes.

117-1760.1. Classification of Companies. The major operation of the company shall regulate such classification where the company is involved in more than one operation.

117-1760.2. Multi-Use Property. Code Sections 12-43-210 to 12-43-310 of the South Carolina Code of Laws provides classifications of property for property tax purposes at different ratios of assessment. If a particular piece of property is used for more than one purpose, then the …

117-1780. Classification of Property - Agricultural Use Property. These regulations address the application of the property tax laws to agricultural property and how property may qualify as agricultural use property. (See also, Property Tax Regulation 117-1840.2 on how to value a…

117-1780.1. Definition of Agricultural Real Property. Agricultural Real Property, as that term is used in 12-43-220(d), 12-43-230, and 12-43-232 of the South Carolina Code of Laws means a tract of real property which is used for agricultural purposes. Real property must meet the …

117-1780.2. Agricultural Special Assessment Applications. I. Qualifications—Requirements. Agricultural real property which is actually used for such purposes, not including however, a corporation which is the owner or lessee except for certain corporations which do not: 1. have m…

117-1780.3. Roll Back Provisions on Agricultural Land. Whenever a tract of real property has 50% or more of its area being used for agricultural purposes, the entire tract shall qualify for agricultural real property. Excluding, however that portion on which a business is operate…

117-1800. Classification of Property - Legal Residence. These regulations address the application of the property tax laws to residential property and how property may qualify as legal residence property.

117-1800.1. Application for Special Assessment as Legal Residence. 1. Qualification Requirements. The property must be occupied by the owner as his legal residence and the property and the owners of the property must meet the requirements of Section 12-43-220(c) of the South Caro…

117-1820. Manufacturing Plants Constructed Pursuant to the Industrial Revenue Bond Act. These regulations address how manufacturing plants that are subject to the Industrial Revenue Bond Act are to be treated.

117-1820.1. Manufacturing Plants Constructed Pursuant to the Industrial Revenue Bond Act. The Lessee of all manufacturing plants constructed pursuant to Chapter 29, Title 4 of the South Carolina Code of Laws, shall file a return with the Department of Revenue in the same manner a…

117-1840. Valuation of Property Subject to Property Taxes. These regulations address how property subject to South Carolina property taxes are to valued.

117-1840.1. Value of Merchants’ Furniture, Fixtures and Equipment. The fair market value of merchants’ furniture, fixtures and equipment shall be the depreciated value as shown by the merchants’ records for South Carolina income tax purposes, provided however, that in no event is…

117-1840.2. Use of Assessment Guides Published by the Department. a. Section 12-4-560 of the South Carolina Code of Laws provides, in part, that the Department of Revenue shall prepare appropriate manuals, guides, and other aids for the equitable assessment of all properties. Und…

117-1840.3. Discount for Subdivided Land. Code Sections 12-43-224 and 12-43-225 of the South Carolina Code of Laws provides a discount from market value for subdivided land. For purposes of Code Sections 12-43-224 and 12-43-225, a subdivision is a tract of land which has been div…

117-1860. Returns. These regulations address how and where returns dealing with property taxes are to be filed.

117-1860.1. Licensed Automotive Vehicles and Airplanes. The return of property to the Department of Revenue for property assessment purposes shall not include licensed automotive vehicles or airplanes. Such licensed automotive vehicles and airplanes shall be returned to local Cou…

117-200. Recordkeeping. Code Section 12-54-210 requires all taxpayers to keep books and records as the South Carolina Department of Revenue may prescribe. Code Section 12-54-100 authorizes the Department to examine the books and records of a taxpayer to ascertain the correctness …

117-200.1. Retention of Books and Records and the Use of Microfilm Reproduction of Books and Records. A person applying for or holding a license administered by the Department; liable for any tax, fee, or surcharge administered by the Department; or required to file any return or…

117-200.2. Model Recordkeeping and Retention. (A) The purpose of this regulation is to define the requirements imposed on taxpayers for the maintenance and retention of books, records, and other sources of information under Code Section 12-54-210. It is also the purpose of this r…

117-201. Supplying of Identifying Numbers. Any person required to make a return, statement, or document to the South Carolina Department of Revenue shall include in such return, statement, or other document such identifying numbers as may be prescribed for securing proper identif…

117-202. Definitions; Reimbursement for Costs Incurred in Complying with Summons. Section 1. For purposes of this regulation the words terms and phrases when used herein shall have the meaning ascribed thereto. (a) A ‘‘taxpayer’’ is a person, firm, corporation or other entity wit…

117-300. Retail License. As a condition precedent to doing business in this state, every retailer shall obtain a retail license for each retail outlet.

117-300.1. Doing Business in South Carolina. Every retailer making sales of tangible personal property for storage, use or other consumption in this state, who: 1. Maintains a place of business; 2. Qualifies to do business; 3. Solicits and receives purchases or orders by agent or…

117-300.2. Vending and other Coin-Operated Machines Dispensing Tangible Personal Property. For the purpose of determining the licenses required by persons engaged in the business of operating vending or coin-operated machines dispensing cigarettes and soft drinks in closed contai…

117-300.3. Operation of Deceased Licensed Retailer’s Business by Personal Representative of His Estate. The personal representative of the estate of a deceased licensed retailer may, upon filing with the department a certified copy of Letters Testamentary or Letters of Administra…

117-300.4. Application for Transfer. A licensed retailer may, upon written application and approval by the department, have transferred his retail dealer’s license from one location to another without incurring additional license tax liability. This rule is for application only i…

117-300.5. Fairs, Carnivals, Concessionaires at Athletic Stands and Other Public Exhibitions. Operators of fairs, carnivals and concessionaire at athletic stands and other public exhibitions sell tangible personal property from booths which they operate. These sales are subject t…

117-300.6. Partnership. (A) A partnership engaged in the business of selling tangible personal property at retail, and therefore required to be licensed under the provisions of Article 5, Chapter 36 of Title 12, must obtain a new retail license, or retail licenses if the partners…

117-301. Agriculture. The South Carolina sales and use tax law provides many exemptions from the tax for the agriculture industry. The exemptions are found in Code Section 12-36-2120 and include exemptions for livestock, feed, insecticides, chemicals, fertilizers, containers, lab…

117-301.1. Livestock The sale of livestock is exempt from the tax under Code Section 12-36-2120(4). Livestock is defined as domesticated animals customarily raised in South Carolina farms for use primarily as beasts of burden or food. Livestock also means mammals raised for their…

117-301.10. Hatcheries. The hatchery operator may purchase under his retail license hatchery eggs for use in hatching baby chicks for sale. Hatchery eggs may be sold free of the tax to a hatchery operator not having a retail license, provided, the seller thereof takes from such o…

117-301.2. Feed. The sale of feed used in the production and maintenance of livestock, as defined Regulation 117-301.1, is exempt from the tax under Code Section 12-36-2120(5). Horse feed, rabbit feed used in the production and maintenance of rabbits for human consumption, and fe…

117-301.3. Insecticides, Chemicals, Fertilizers, Soils Conditioners, Seeds and Seedlings. Insecticides, chemicals, fertilizers, soils conditioners, seeds and seedlings used solely in the produc- tion for sale of farm, grove, vineyard or garden products are exempt under Code Secti…

117-301.4. Containers and Labels. Containers and labels used in preparing agriculture products for sale and used in preparing turpentine gum, gum spirits of turpentine, and gum resins for sale are exempt under Code Section 12-36-2120(7). For the purposes of this exemption, ‘‘cont…

117-301.5. Farm Machinery. The sale of farm machinery that is used in planting, cultivating or harvesting farms crops for sale is exempt under Code Section 12-36-2120(16). This exemption also applies to replacement parts and attachments. For purposes of this exemption, the terms …

117-301.6. Fuel. Fuel used in farm machinery and farm tractors used in planting, cultivating, or harvesting farm crops and fuel used to cure agricultural products is exempt under Code Sections 12-36-2120(15) and 12-36-2120(18). This applies to fuel used in curing grain in grain e…

117-301.7. Electricity and Gas. The following sales of electricity and gas are exempt: (a) sales of electricity and natural and liquefied petroleum gas to farmers for use in the production of livestock or milk (Code Section 12-36-2120(32)). (b) sales of electricity for irrigating…

117-301.8. Building Materials, Supplies, Fixtures and Equipment for Commercial Housing of Poultry and Livestock. Sales of building material, supplies, fixture, and equipment used in the construction, repair, or improvement a commercial housing of poultry or livestock, or that bec…

117-301.9. Sales by Farmers. Sales of farm products are exempt if sold in their original state of production and sold by the farmer or a member of the farmer’s immediate family. This exemption not only applies to sales of farm products by individuals; it also applies to sales by …

117-302. Manufacturers, Processors, Compounders, Miners, and Quarries. Manufacturers, processors, compounders, miners, and quarries enjoy several exclusions and exemp- tions from the sales and use taxes. The exclusions can be found in Code Section 12-36-120 and includes container…

117-302.1. Ingredients and Component Parts and Items Used Directly. Purchases of tangible personal property are not subject to the tax under Code Section 12-36-120 if the tangible personal property: (a) becomes an ingredient or component part of tangible personal property manufac…

117-302.2. Containers. The sale of materials, containers, cores, labels, sacks or bags used incident to the sale and delivery of tangible personal property or used by manufacturers, processors, or compounders in shipping tangible personal property are not subject to sales and use…

117-302.3. Coal, Coke or Other Fuel. Code Section 12-36-2120(9) directs that only certain classes of purchasers may buy free of the tax coal, coke or other fuel. Coal, coke or other fuel sold to manufacturers, quarriers and miners for use in manufacturing, quarrying or mining tan…

117-302.4. Electricity. Electricity used by manufacturers, miners, quarriers, and processors to manufacture, mine, quarry, or process tangible personal property for sale is exempt from the tax under Code Section 12-36-2120(19). Sales of electricity to manufacturers, miners, quarr…

117-302.5. Machines. (A) Introduction: Machines used in manufacturing, processing, compounding, mining, or quarrying tangible personal property for sale, and the replacement parts and attachments to such machines, are exempt from the sales and use tax under Code Section 12-36-212…

117-302.6. Pollution Control Machines. Code Section 12-36-2120(17) exempts from the sales or use tax the gross proceeds of the sale of machines used in mining, quarrying, compounding, processing and manufacturing of tangible person- al property and the term ‘‘machine’’ includes p…

117-302.7. Outside Signs, Furnished. Outside signs furnished by a manufacturer to his customers, when such signs are furnished without cost to the customers, are subject to sales or use tax when purchased by the manufacturer. These signs are not purchased to be resold nor are the…

117-302.8. Patterns, Sales. Certain manufacturers in the operation of their businesses purchase for their customers patterns which are used by the manufacturers in the production of property for sale to their customers. When such patterns are received by the manufacturers, they a…

117-303. Laundry, Launderette, Cleaning, Dyeing or Pressing Establishments. Code Sections 12-36-910 and 12-36-1310 impose the sales and use taxes on the ‘‘gross proceeds accruing or proceeding from the business of providing or furnishing any laundering, dry cleaning, dyeing, or p…