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Skill Metadata
| Field | Value | |-------|-------| | Jurisdiction | South Carolina, United States | | Jurisdiction Code | US-SC | | Tax Type | Sales and Use Tax | | State Tax Rate | 6% | | Maximum Combined Rate | 9% (6% state + up to 3% local) | | Primary Legal Framework | South Carolina Code of Laws, Title 12, Chapter 36 (Section 12-36-10 et seq.) | | Governing Body | South Carolina Department of Revenue (SCDOR) | | Filing Portal | MyDORWAY -- https://mydorway.dor.sc.gov | | Economic Nexus Effective Date | November 1, 2018 | | SST Member | No | | Notable Feature | $500 max tax cap on motor vehicles, boats, aircraft, manufactured homes | | Contributor | Open Accounting Skills Registry | | Validated By | Pending -- requires US CPA or Enrolled Agent sign-off | | Validation Date | Pending | | Skill Version | 1.0 | | Confidence Coverage | Tier 1: rate lookups, basic nexus, standard taxability, max tax cap. Tier 2: SaaS classification, local penny tax, service taxability. Tier 3: audit defense, penalty abatement, complex multi-jurisdiction analysis. | | Format | Restructured to Q1 execution format, April 2026 |
Client Onboarding Questions
| # | Question | Why It Matters | |---|----------|---------------| | 1 | Do you have a South Carolina sales tax registration / tax ID? | Determines whether registration is needed before filing. | | 2 | What is your current filing frequency (monthly / quarterly / annually)? | Controls which return periods to prepare. | | 3 | What is your nexus type -- physical presence, economic nexus, or both? | Determines registration obligations and applicable rules. | | 4 | Are you a marketplace seller (selling through Amazon, Etsy, etc.)? | Marketplace facilitator may already be collecting on your behalf. | | 5 | What types of products or services do you sell in South Carolina? | Drives taxability classification under South Carolina law. | | 6 | Do you sell to exempt entities (government, nonprofits, resellers)? | Determines whether exemption certificates must be collected and retained. | | 7 | Do you have locations, employees, or inventory in South Carolina? | Physical presence creates nexus independent of economic thresholds. | | 8 | Do you sell into multiple South Carolina local jurisdictions? | Local tax rates vary; determines compliance complexity. |
Stop condition on Qs 1-4
Skill Metadata
| Field | Value |
|---|---|
| Jurisdiction | South Carolina, United States |
| Jurisdiction Code | US-SC |
| Tax Type | Sales and Use Tax |
| State Tax Rate | 6% |
| Maximum Combined Rate | 9% (6% state + up to 3% local) |
| Primary Legal Framework | South Carolina Code of Laws, Title 12, Chapter 36 (Section 12-36-10 et seq.) |
| Governing Body | South Carolina Department of Revenue (SCDOR) |
| Filing Portal | MyDORWAY -- https://mydorway.dor.sc.gov |
| Economic Nexus Effective Date | November 1, 2018 |
| SST Member | No |
| Notable Feature | $500 max tax cap on motor vehicles, boats, aircraft, manufactured homes |
| Contributor | Open Accounting Skills Registry |
| Validated By | Pending -- requires US CPA or Enrolled Agent sign-off |
| Validation Date | Pending |
| Skill Version | 1.0 |
| Confidence Coverage | Tier 1: rate lookups, basic nexus, standard taxability, max tax cap. Tier 2: SaaS classification, local penny tax, service taxability. Tier 3: audit defense, penalty abatement, complex multi-jurisdiction analysis. |
| Format | Restructured to Q1 execution format, April 2026 |
Every rule in this skill is tagged with a confidence tier:
Client Onboarding Questions
| # | Question | Why It Matters |
|---|---|---|
| 1 | Do you have a South Carolina sales tax registration / tax ID? | Determines whether registration is needed before filing. |
| 2 | What is your current filing frequency (monthly / quarterly / annually)? | Controls which return periods to prepare. |
| 3 | What is your nexus type -- physical presence, economic nexus, or both? | Determines registration obligations and applicable rules. |
| 4 | Are you a marketplace seller (selling through Amazon, Etsy, etc.)? | Marketplace facilitator may already be collecting on your behalf. |
| 5 | What types of products or services do you sell in South Carolina? | Drives taxability classification under South Carolina law. |
| 6 | Do you sell to exempt entities (government, nonprofits, resellers)? | Determines whether exemption certificates must be collected and retained. |
| 7 | Do you have locations, employees, or inventory in South Carolina? | Physical presence creates nexus independent of economic thresholds. |
| 8 | Do you sell into multiple South Carolina local jurisdictions? | Local tax rates vary; determines compliance complexity. |
Local Rates
| Tax Component | Rate Range | Authority |
|---|---|---|
| State tax | 6% | S.C. Code Section 12-36-910 |
| Local option (county) | 1% -- 3% | S.C. Code Section 4-10 (various articles) |
| Maximum combined | 9% |
Max Tax Cap Items (S.C. Code Section 12-36-2110(A))
| Item | Max State Tax | Authority |
|---|---|---|
| Motor vehicles | $500 | S.C. Code Section 12-36-2110(A) |
| Boats and watercraft | $500 | S.C. Code Section 12-36-2110(A) |
| Aircraft | $500 | S.C. Code Section 12-36-2110(A) |
| Manufactured homes | $500 | S.C. Code Section 12-36-2110(A) |
| Motorcycles | $500 | S.C. Code Section 12-36-2110(A) |
| Recreational vehicles | $500 | S.C. Code Section 12-36-2110(A) |
A $50,000 vehicle in a county with 2% local tax: State tax = $500 (capped). Local tax = $50,000 x 2% = $1,000. Total tax = $1,500.
Taxability Matrix
| Item Category | Taxable? | Rate | Authority | Tier |
|---|---|---|---|---|
| General tangible personal property | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] |
| Grocery food (food for home consumption) | Exempt | 0% | S.C. Code Section 12-36-2120(75) | [T1] |
| Prepared food (restaurant meals) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] |
| Clothing and footwear | Yes | Full rate | No exemption | [T1] |
| Prescription drugs | Exempt | 0% | S.C. Code Section 12-36-2120(28) | [T1] |
| Over-the-counter drugs | Exempt | 0% | S.C. Code Section 12-36-2120(28)(c) | [T1] |
| Durable medical equipment | Exempt (with prescription) | 0% | S.C. Code Section 12-36-2120(28) | [T1] |
| Motor vehicles | Yes (subject to $500 cap on state tax) | 6% capped at $500 state | S.C. Code Section 12-36-2110(A) | [T1] |
| Gasoline and motor fuel | Exempt from sales tax (motor fuel excise) | N/A | S.C. Code Section 12-36-2120(16) | [T1] |
| Utilities (residential electricity) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] |
| Utilities (commercial) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] |
| Manufacturing equipment (direct use) | Exempt | 0% | S.C. Code Section 12-36-2120(17) | [T2] |
| Agricultural supplies and equipment | Exempt | 0% | S.C. Code Section 12-36-2120(14)-(15) | [T1] |
| Software -- canned (tangible medium) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] |
| Software -- canned (electronic delivery) | Yes | Full rate | SCDOR Revenue Ruling 16-2 | [T2] |
| Software -- custom | Exempt | 0% | SCDOR guidance | [T2] |
| SaaS (Software as a Service) | Not taxable | 0% | SCDOR -- not TPP; Revenue Ruling 19-1 | [T2] |
| Digital goods (electronically delivered) | Not specifically taxable | 0% | Not defined as TPP | [T2] |
| Newspapers (printed) | Exempt | 0% | S.C. Code Section 12-36-2120(4) | [T1] |
Services Taxability
| Service | Taxable? | Authority |
|---|---|---|
| Telecommunications | Yes | S.C. Code Section 12-36-910 |
| Cable/satellite TV | Yes | S.C. Code Section 12-36-910 |
| Repair and maintenance of TPP | Parts: Yes; Labor: Yes (total charge taxable) | S.C. Code Section 12-36-910(B) |
| Hotel/lodging | Yes (plus local accommodations tax) | S.C. Code Section 12-36-920 |
| Laundry/dry cleaning | Yes | S.C. Code Section 12-36-910(B)(3) |
| Electricity/gas utility service | Yes | S.C. Code Section 12-36-910 |
| Professional services (legal, accounting) | No | Not enumerated |
| Personal services (haircuts, spa) | No | Not enumerated |
| Construction/real property | No (materials taxable at purchase) | SCDOR guidance |
| Transportation/freight | Exempt (if separately stated) | S.C. Code Section 12-36-2120(66) |
Filing Frequency
| Filing Status | Frequency | Due Date |
|---|---|---|
| All registrants | Monthly | 20th of the following month |
Penalties and Interest
| Violation | Penalty | Authority |
|---|---|---|
| Late filing | 5% per month, up to 25% | S.C. Code Section 12-54-43 |
| Late payment | 0.5% per month, up to 25% | S.C. Code Section 12-54-43 |
| Failure to file | Estimated assessment + penalties | S.C. Code Section 12-54-44 |
| Fraud | 75% of deficiency | S.C. Code Section 12-54-43 |
| Interest | Federal underpayment rate | S.C. Code Section 12-54-25 |
South Carolina Exemption Certificates
| Certificate | Use Case | Authority |
|---|---|---|
| Form ST-8A (Resale Certificate) | Purchases for resale | SCDOR |
| Form ST-8F (Exempt Organization Certificate) | Nonprofit/government purchases | SCDOR |
| Form ST-8B (Manufacturing Exemption) | Manufacturing equipment | SCDOR |
| SSTCE | Multi-state (accepted) | SCDOR policy |
Economic Nexus Thresholds (S.C. Code Section 12-36-71)
| Threshold | Value | Measurement Period |
|---|---|---|
| Revenue | $100,000 in gross sales into South Carolina | Previous or current calendar year |
| Transactions | N/A (revenue only) | |
| Test | Revenue only |
Refer to Step 3 for filing frequencies and due dates.
Max Tax Cap Calculations
| Purchase Price | Uncapped State Tax (6%) | Capped State Tax | Savings |
|---|---|---|---|
| $10,000 | $600 | $500 | $100 |
| $25,000 | $1,500 | $500 | $1,000 |
| $50,000 | $3,000 | $500 | $2,500 |
| $100,000 | $6,000 | $500 | $5,500 |
| $500,000 | $30,000 | $500 | $29,500 |
Question: A retailer in Charleston County (2% local) sells a $800 television. What is the total sales tax?
Expected Answer: State: $800 x 6% = $48. Local: $800 x 2% = $16. Total: $64.
Question: A customer buys a $45,000 car in a county with 1% local tax. What is the total sales tax?
Expected Answer: State: $500 (capped). Local: $45,000 x 1% = $450 (no cap on local). Total: $950.
Question: A consumer buys $200 of groceries in Greenville County. What tax is due?
Expected Answer: $0. Grocery food is exempt from both state and local sales tax in SC.
Question: A SC business subscribes to a $400/month SaaS accounting platform. Is SC sales tax due?
Expected Answer: No. SaaS is not taxable in South Carolina per Revenue Ruling 19-1.
Question: An out-of-state seller made $110,000 in SC sales and 50 transactions. Does the seller have nexus?
Expected Answer: Yes. SC uses a revenue-only threshold of $100,000. Transaction count is irrelevant.
Question: An auto repair shop charges $300 for labor and $400 for parts to fix a transmission in SC. What tax is due?
Expected Answer: The entire $700 (labor + parts) is taxable. Tax = $700 x 8% (example with 2% local) = $56.
Question: A customer buys a $200,000 boat in a county with 2% local tax. What is the total tax?
Expected Answer: State: $500 (capped). Local: $200,000 x 2% = $4,000. Total: $4,500. Without the cap, state tax alone would have been $12,000.
Reviewer Escalation Protocol
| Trigger | Action |
|---|---|
| Any [T3] tagged item encountered | STOP. Do not guess. Escalate to licensed CPA, EA, or tax attorney. |
| Client has audit notice or assessment | Escalate immediately. Do not advise on audit response. |
| Multi-state nexus question involving 3+ states | Flag for senior reviewer with multi-state experience. |
| Penalty abatement or voluntary disclosure | Escalate to licensed professional with state-specific experience. |
| Ambiguous taxability of a product/service | Present both interpretations to reviewer with supporting authority. |
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
Other South Carolina computations in the OpenAccountants Tax Library.
If the client cannot answer questions 1-4, STOP and gather this information before proceeding.
State sales and use tax rate
6%S.C. Code Section 12-36-910
Local Rates
| Tax Component | Rate Range | Authority | |---------------|-----------|-----------| | State tax | 6% | S.C. Code Section 12-36-910 | | Local option (county) | 1% -- 3% | S.C. Code Section 4-10 (various articles) | | **Maximum combined** | **9%** | |
Capital Projects Sales Tax
1%: For specific capital improvement projects, approved by referendum.
Transportation Penny Tax
1%: For transportation infrastructure.
Local Option Tax
1%: General county use, with property tax rollback.
Not all counties levy local taxes
Not all counties levy local taxes. Many counties have one or two local levies; some have none.
Max Tax Cap Items
| Item | Max State Tax | Authority | |------|---------------|-----------| | Motor vehicles | $500 | S.C. Code Section 12-36-2110(A) | | Boats and watercraft | $500 | S.C. Code Section 12-36-2110(A) | | Aircraft | $500 | S.C. Code Section 12-36-2110(A) | | Manufactured homes | $500 | S.C. Code Section 12-36-2110(A) | | Motorcycles | $500 | S.C. Code Section 12-36-2110(A) | | Recreational vehicles | $500 | S.C. Code Section 12-36-2110(A) |S.C. Code Section 12-36-2110(A)
Cap applies regardless of price
The maximum state sales tax on these items is $500, regardless of the purchase price.
Cap breakeven price
$500 / 6% = $8,333. So for items priced at $8,333 or less, the full 6% applies. For items over $8,333, the state tax is capped at $500.
Local taxes not subject to cap
Local taxes are NOT subject to the cap and apply to the full purchase price.
Destination-based sourcing
South Carolina is a destination-based sourcing state.
Shipped goods sourcing
Shipped goods: Destination (ship-to address).
Over-the-counter sourcing
Over-the-counter: Seller's location.
General rule
South Carolina sales tax applies to the retail sale of tangible personal property and certain services.S.C. Code Section 12-36-910
Taxability Matrix
| Item Category | Taxable? | Rate | Authority | Tier | |---------------|----------|------|-----------|------| | General tangible personal property | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] | | Grocery food (food for home consumption) | **Exempt** | 0% | S.C. Code Section 12-36-2120(75) | [T1] | | Prepared food (restaurant meals) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] | | Clothing and footwear | Yes | Full rate | No exemption | [T1] | | Prescription drugs | Exempt | 0% | S.C. Code Section 12-36-2120(28) | [T1] | | Over-the-counter drugs | Exempt | 0% | S.C. Code Section 12-36-2120(28)(c) | [T1] | | Durable medical equipment | Exempt (with prescription) | 0% | S.C. Code Section 12-36-2120(28) | [T1] | | Motor vehicles | Yes (subject to $500 cap on state tax) | 6% capped at $500 state | S.C. Code Section 12-36-2110(A) | [T1] | | Gasoline and motor fuel | Exempt from sales tax (motor fuel excise) | N/A | S.C. Code Section 12-36-2120(16) | [T1] | | Utilities (residential electricity) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] | | Utilities (commercial) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] | | Manufacturing equipment (direct use) | Exempt | 0% | S.C. Code Section 12-36-2120(17) | [T2] | | Agricultural supplies and equipment | Exempt | 0% | S.C. Code Section 12-36-2120(14)-(15) | [T1] | | Software -- canned (tangible medium) | Yes | Full rate | S.C. Code Section 12-36-910 | [T1] | | Software -- canned (electronic delivery) | Yes | Full rate | SCDOR Revenue Ruling 16-2 | [T2] | | Software -- custom | Exempt | 0% | SCDOR guidance | [T2] | | SaaS (Software as a Service) | **Not taxable** | 0% | SCDOR -- not TPP; Revenue Ruling 19-1 | [T2] | | Digital goods (electronically delivered) | Not specifically taxable | 0% | Not defined as TPP | [T2] | | Newspapers (printed) | Exempt | 0% | S.C. Code Section 12-36-2120(4) | [T1] |
SNAP/EBT eligible food exemption
The exemption applies to food eligible for purchase with SNAP/EBT.
Prepared food taxable
Prepared food remains fully taxable.
Candy and soft drinks
Candy and soft drinks are treated as food (exempt).
Local taxes on food
Local taxes may still apply to food in some jurisdictions.
Grocery food exemption authority
South Carolina fully exempts unprepared food (food for home consumption) from sales tax.S.C. Code Section 12-36-2120(75)
SaaS not TPP
SaaS is not considered tangible personal property under SC law.
Revenue Ruling 19-1
Revenue Ruling 19-1 confirmed that remotely accessed software does not constitute a taxable sale.Revenue Ruling 19-1
Canned electronic vs SaaS distinction
Canned software delivered electronically IS taxable, but SaaS (where the software resides on the vendor's server) is distinguished.
Services Taxability
| Service | Taxable? | Authority | |---------|----------|-----------| | Telecommunications | Yes | S.C. Code Section 12-36-910 | | Cable/satellite TV | Yes | S.C. Code Section 12-36-910 | | Repair and maintenance of TPP | Parts: Yes; Labor: Yes (total charge taxable) | S.C. Code Section 12-36-910(B) | | Hotel/lodging | Yes (plus local accommodations tax) | S.C. Code Section 12-36-920 | | Laundry/dry cleaning | Yes | S.C. Code Section 12-36-910(B)(3) | | Electricity/gas utility service | Yes | S.C. Code Section 12-36-910 | | Professional services (legal, accounting) | No | Not enumerated | | Personal services (haircuts, spa) | No | Not enumerated | | Construction/real property | No (materials taxable at purchase) | SCDOR guidance | | Transportation/freight | Exempt (if separately stated) | S.C. Code Section 12-36-2120(66) |
Registration requirement
All sellers with nexus must register with SCDOR for a Retail License. Registration through MyDORWAY.S.C. Code Section 12-36-510
Registration fee
$50 per retail locationS.C. Code Section 12-36-510
Filing Frequency
| Filing Status | Frequency | Due Date | |---------------|-----------|----------| | All registrants | Monthly | 20th of the following month |
No quarterly/annual filing
South Carolina does NOT offer quarterly or annual filing for general sales tax. All filers file monthly.
Form ST-3
Form ST-3 (State Sales, Use and Accommodations Tax Return) is the primary return.
Electronic filing required
Electronic filing through MyDORWAY is required.
Payment due date
Payment due by the 20th of the following month.
State and local reported together
Both state and state-administered local taxes are reported on the same return.
Timely payment discount
3% of the first $100 of tax due per return period (maximum $3 per period)S.C. Code Section 12-36-2610
Penalties and Interest
| Violation | Penalty | Authority | |-----------|---------|-----------| | Late filing | 5% per month, up to 25% | S.C. Code Section 12-54-43 | | Late payment | 0.5% per month, up to 25% | S.C. Code Section 12-54-43 | | Failure to file | Estimated assessment + penalties | S.C. Code Section 12-54-44 | | Fraud | 75% of deficiency | S.C. Code Section 12-54-43 | | Interest | Federal underpayment rate | S.C. Code Section 12-54-25 |
South Carolina Exemption Certificates
| Certificate | Use Case | Authority | |-------------|----------|-----------| | **Form ST-8A** (Resale Certificate) | Purchases for resale | SCDOR | | **Form ST-8F** (Exempt Organization Certificate) | Nonprofit/government purchases | SCDOR | | **Form ST-8B** (Manufacturing Exemption) | Manufacturing equipment | SCDOR | | **SSTCE** | Multi-state (accepted) | SCDOR policy |
Valid certificate requirements
Valid certificates must include: purchaser information, SC retail license number (for resale), reason for exemption, description of goods, signature, date.
Good faith acceptance
Good faith acceptance protects sellers.
Certificate retention period
3 years from the date of the last transaction
Use tax applicability
SC use tax applies when sales tax was not collected on items used, stored, or consumed in South Carolina.
Use tax rate
6% state + applicable local
Cap applies to use tax
The $500 cap applies to qualifying items for use tax as well.
Business use tax reporting
Businesses: Report on Form ST-3.
Individual use tax reporting
Individuals: Report on SC income tax return (Form SC1040), Line 19.
Physical nexus
Standard physical nexus principles apply.
Economic Nexus Thresholds
| Threshold | Value | Measurement Period | |-----------|-------|--------------------| | Revenue | **$100,000** in gross sales into South Carolina | Previous or current calendar year | | Transactions | N/A (revenue only) | | | Test | Revenue only | |S.C. Code Section 12-36-71
Economic nexus effective date
November 1, 2018S.C. Code Section 12-36-71
Marketplace facilitator collection duty
Effective April 26, 2019: Marketplace facilitators meeting the nexus threshold must collect and remit.S.C. Code Section 12-36-71(H)
Marketplace sellers relieved
Marketplace sellers relieved for facilitated sales.S.C. Code Section 12-36-71(H)
1
NEVER apply full 6% state tax to motor vehicles, boats, or aircraft over $8,333 (the $500 cap applies).
2
NEVER advise that grocery food is taxable in SC (it is exempt).
3
NEVER advise that SaaS is taxable in SC (it is not).
4
NEVER tell a seller they can file quarterly in SC -- all filers file monthly.
5
NEVER apply the $500 cap to local taxes (only the state tax is capped).
6
NEVER use a transaction-count threshold for SC economic nexus (revenue only, $100K).
7
NEVER ignore local "penny taxes" -- they can add up to 3% on top of the 6% state rate.
8
NEVER advise that repair labor is exempt in SC (the total charge for repair, including labor, is taxable).
9
NEVER exempt casual sales of motor vehicles (they are always subject to tax).
10
NEVER forget the $50 per-location retail license fee when advising on registration.
Max Tax Cap Calculations
| Purchase Price | Uncapped State Tax (6%) | Capped State Tax | Savings | |---------------|------------------------|-------------------|---------| | $10,000 | $600 | $500 | $100 | | $25,000 | $1,500 | $500 | $1,000 | | $50,000 | $3,000 | $500 | $2,500 | | $100,000 | $6,000 | $500 | $5,500 | | $500,000 | $30,000 | $500 | $29,500 |
Local taxes not capped on full price
Local taxes still apply to the full purchase price.
State accommodations tax stated (7%)
State: 7% (2% more than the general 5% sales tax base -- effectively 7% state rate on lodging).
Accommodations tax total state rate
Actually, accommodations are taxed at the 6% state sales tax PLUS a 2% state accommodations tax = 8% total state.
Local accommodations taxes vary
Local accommodations taxes also apply (vary by county).
Marketplace facilitators collect on short-term rentals
Marketplace facilitators collect on short-term rental platforms.
Machines used in manufacturing
Machines used in manufacturing, processing, fabrication.
Raw materials incorporated
Raw materials incorporated into finished products.
Electricity used in manufacturing
Electricity used in manufacturing (reduced rate).
Pollution control equipment
Pollution control equipment.
Manufacturing exemption authority
South Carolina provides manufacturing exemptions.S.C. Code Section 12-36-2120(17)
Casual sales exemption general
South Carolina exempts casual or occasional sales by persons not regularly engaged in business.
Vehicles excluded from casual sale exemption
The exemption does NOT apply to motor vehicles, boats, aircraft, or manufactured homes (always subject to tax, even between private parties).
Private party vehicle sale cap
Private party vehicle sales: $500 max tax cap still applies.
Contractors pay tax on materials
Contractors pay tax on materials at purchase.
No sales tax collection on real property improvements
Contractors do NOT collect sales tax on real property improvements.
Prefabricated components
Prefabricated components may have different treatment.
Both labor and parts taxable
Both labor and parts are taxable.
Tax applies to total invoice
The tax applies to the total invoice amount.
Important for repair businesses
This is important for auto repair shops, appliance repair, and similar businesses.
Clothing exemption in holiday
Clothing (any price): exempt from state and local tax.
School supplies exemption in holiday
School supplies: exempt.
Computers exemption threshold
$1,000 or less: exempt
Bed and bath items exemption
Bed and bath items: exempt.
Holiday broader than most states
SC's holiday is broader than most states (no price cap on clothing).
Reviewer Escalation Protocol
| Trigger | Action | |---------|--------| | Any [T3] tagged item encountered | STOP. Do not guess. Escalate to licensed CPA, EA, or tax attorney. | | Client has audit notice or assessment | Escalate immediately. Do not advise on audit response. | | Multi-state nexus question involving 3+ states | Flag for senior reviewer with multi-state experience. | | Penalty abatement or voluntary disclosure | Escalate to licensed professional with state-specific experience. | | Ambiguous taxability of a product/service | Present both interpretations to reviewer with supporting authority. |
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