South Carolina Administrative Code

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…

117-335.2. Modular Homes The basis upon which the tax is calculated on a modular home (as regulated in Chapter 43 of Title 23) is only fifty percent of the ‘‘gross proceeds of sales’’ as defined in Code Section 12-36-2120(34). A modular home regulated under Chapter 43 of Title 23…

117-335.3. Other Factory Fabricated Buildings Sales of portable classrooms and storage type manufactured buildings, recreational vehicles (RVs), travel trailers, campers, manufactured condominiums and units, and like tangible personal property are not considered sales of manufact…

117-335.4. Furniture and Appliance Furniture and appliances are not considered a part of a manufactured or modular home, unless they are built-ins. For example, televisions, counter appliances, sofas, chairs and tables, even though sold with a home, are not a part of the home. Be…

117-335.5. Heat Pumps, Decks, Steps, Skirting and Similar Items Heat pumps, air conditioning systems, skirting, steps, decks, septic tanks, wells, and driveways built or installed after the home is delivered to the construction site are not considered a part of the delivered home…

117-336. Definition of the Term ‘‘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 a…

117-337. Sales of Unprepared Food. Effective November 1, 2007, Code Section 12-36-2120(75) exempts from the state sales and use tax the gross proceeds of sales or sales price of ‘‘unprepared food that lawfully may be purchased with United States Department of Agriculture food cou…

117-337.1. ‘‘Eligible Food’’ Defined. For purposes of this regulation, the term ‘‘eligible food’’ is food eligible for the exemption under Code Section 12-36-2120(75) that will be defined to include and exclude the following: (A) Foods eligible for the exemption under Code Sectio…

117-337.2. ‘‘Prepared Meals or Food’’ Defined. (A) ‘‘Prepared meals or food’’ is food for immediate consumption (based on the type of food and the type of location selling the food) and is not eligible for the exemption under Code Section 12-36-2120(75), but is subject to the ful…

117-337.3. General Rules. (A) Sales of ‘‘Eligible Food’’ by Grocery, Convenience and Similar Stores Authorized to Accept Food Stamps: Sales of ‘‘eligible food’’ by a grocery, convenience or similar store authorized to accept food stamps shall be deemed to be for home consumption …

117-337.4. Examples. The following examples are provided to assist in understanding the above provisions of this regulation: (a) Sales at retail of food delivered to offices and businesses are subject to tax at the full state rate. (b) Sales at retail of food delivered to day car…

117-337.5. Local Taxes. The exemption in Code Section 12-36-2120(75) for ‘‘unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons’’ does not apply to local sales and use taxes that are administered and collected by the Department …

117-337.6. Records. The seller of ‘‘eligible food’’ exempt from the state sales and use tax under Code Section 12-36-2120(75) shall maintain sufficient documentation to substantiate that a sale qualifies for the exemption from the state sales and use tax, using any method of reco…

117-620. This regulation contains general rules in determining legal residency.

117-620.1. Legal Residence When Domiciled in a Foreign Country. Where it can be shown that an individual has become domiciled in a foreign country and, therefore, no longer a resident of this state and has severed all connections with this state and has clearly shown his or her i…

117-640. This regulation concerns the taxable income calculation of military personnel, military retirees, and their families.

117-640.1. Military Pay, Non-Service Income, and Income Earned by Military Spouses. 1. Military pay in general: Under the provisions of Sections 12-6-510, 12-6-560, and 12-6-570, military pay is reportable for South Carolina income tax purposes. 2. Nonresident armed services pers…

117-640.2. Legal Residence When Military Personnel is Domiciled in a Foreign Country. The Soldiers’ and Sailors’ Civil Relief Act protects the rights of U.S. Armed Forces personnel, restricting the servicemember’s liability for state income tax to his or her state of domicile. Do…

117-640.3. National Guard or Reserve Pension or Retirement Income. That portion of pension or retirement income received by retired service personnel, residents of this State, that can be attributed to time served in the National Guard or Reserve components of the Armed Forces of…

117-670. Reporting Final Income When Planning to Cease Doing Business in State. A taxpayer planning to cease doing business in this State by the incorporation of an existing business or, in the case of a corporate taxpayer other than a subsidiary corporation, by the dissolution o…

117-700. This regulation contains definitions used in the allocation and apportionment provisions.

117-700.1. Definition of Related Expense as Used for Allocation. The term ‘‘related expenses’’ as used in Section 12-6-2220 means any cost incurred, directly or indirectly, in connection with investments for the production of income or future income which is or will be specifical…

117-705. This regulation contains provisions for allocation of out of state income by a resident.

117-705.1. Allocation of Out-of-State Income and Losses. Income or loss realized by resident individuals or partnerships from an established business, or from the lease or rental of tangible personal property or real property, the situs of which is in another state, shall be allo…

117-705.2. Personal Service Income of a Resident. Income received by a dentist, doctor, lawyer, architect, or other professional domiciled in the State of South Carolina is income from personal services and is subject to South Carolina income taxes, even though such services are …

117-710. This regulation contains general allocation and apportionment provisions.

117-710.1. Proper Allocation and Apportionment of Income. The phrase ‘‘transacting or conducting his business partly within and partly without this State’’ as used in Section 12-6-2210, is applicable to a single business operation, which is unitary or homoge- nous and is carried …

117-740. This regulation contains specific apportionment provisions.

117-740.1. Apportionment of Gains/Losses from Asset Retirement. Any taxpayer electing the non-recognition of gains or losses realized upon the normal retirement of assets from productive use in the taxpayer’s trade or business pursuant to IRS Regulation 1.167(a)-8, in effect on D…

117-750. This regulation contains definitions used in the credit provisions.

117-750.1. ‘‘Facility’’ Defined. 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 ph…

117-755. This regulation provides for a credit to individuals for taxes paid in other states.

117-755.1. Credit for Taxes Paid to a Political Subdivision of a State. The tax credit granted in Code Section 12-6-3400 to a resident individual of South Carolina for taxes paid to another state subject to South Carolina income tax is granted to a resident individual of South Ca…

117-755.2. Tax Credit to Residents of this State Upon Income from a Partnership Taxed in Another State. Where an individual resident of this State is a partner of a partnership rendering personal services in South Carolina and another State, the distributive share of the partners…

117-850. This regulation provides specifications for forms and other information submit- ted to the Department.

117-850.1. Income Tax Forms and Acceptable Reproductions. All income tax returns required to be filed must be made on prepared blank forms furnished by the Department or on substitute forms which are provided for as follows: 1. Reproduced or computer prepared forms must conform t…

117-850.2. Rules and Specifications for Non paper Methods of Submitting Tax Information. The specifications for submitting tax information using non paper methods must conform to the standards published by the section of the Department overseeing these methods. The Department res…

117-855. This regulation provides requirements for information returns and withholding statements.

117-855.1. Withholding Statements Required with Paper Return. The copy of the withholding statement furnished to the employee by the employer, as required under Section 12-8-1540, designated for attachment to the employee’s income tax return, must be attached to the income tax re…

117-855.2. Information Returns Not Required To Be Given To Certain Entities. Information returns required under Section 12-6-4950, do not apply to payments made to banks or to any organization exempt from South Carolina income tax, under Section 12-6-550. HISTORY: Added by State …

117-870. This regulation provides requirements and liability for filing of returns when ceasing to do business in South Carolina.

117-870.1. Stockholders Liable for Tax When Business Operates After Charter Cancelled. When a business continues operating, after cancellation of the corporation charter as a result of non- payment of license fee, the stockholders are required to file a Partnership Return, and ea…

117-875. Voluntary Income Tax Check Off Funds. All voluntary contributions designated on the individual income tax return, as provided by law, are determined at least annually by the Department. The total amount shall be credited to the appropriate check off fund at the earliest …

117-910. This regulation contains specific withholding requirements.

117-910.1. Determination of Withholding When Receiving Taxable Wages and Exempt Compensa- tion. A particular employee may receive wages subject to withholding and also remuneration that is exempt from withholding. In such a case all remuneration paid during the payroll period is …