South Carolina — Sales & Use Tax

South Carolina imposes a state sales tax on every person engaged in the business of selling tangible personal property at retail within the state. The base rate under Section 12-36-910(A) is 5% of gross proceeds of sales. Section 12-36-1110 imposes an additional 1% tax on amounts taxable under Chapter 36, with exceptions for accommodations tax and certain items subject to maximum tax caps, bringing the combined state rate to 6% for most retail sales of tangible personal property. The sales tax also applies to specified services including laundry and dry cleaning services, electricity sales, and communications services.

Source: S.C. Code § 12-36-910; S.C. Code § 12-36-1110

South Carolina imposes economic nexus for remote sellers based solely on gross revenue, not transaction count. A remote seller is required to register, collect, and remit South Carolina sales and use tax if the seller's gross revenue from sales of tangible personal property, products transferred electronically, and services delivered into South Carolina exceeds $100,000 in either the previous calendar year or the current calendar year.

Importantly, there is no longer a 200-transaction threshold; economic nexus is now determined only by exceeding the $100,000 gross revenue threshold. This gross revenue includes all sales delivered into South Carolina—taxable, exempt, and wholesale. Once the threshold is exceeded, the remote seller must register for a retail license and begin collecting and remitting tax on the first day of the second calendar month after economic nexus is established.

This update reflects current Department of Revenue guidance and policy, which aligns with recent practices post-Wayfair and matches the referenced SC DOR Policy Manual, Chapter 13 – Nexus. There is no express statutory transaction count threshold in S.C. Code § 12-36-70, and the DOR's 2024-2026 official guidance no longer acknowledges a transaction count test for nexus.

Source: S.C. Code § 12-36-70 Source: SC DOR Policy Manual, Chapter 13 – Nexus Source: SC DOR Remote Sellers Guidance

A marketplace facilitator that meets the economic nexus threshold is treated as the retailer and must collect and remit sales and use tax on all retail sales made through its marketplace, including sales of tangible personal property owned by third parties. A marketplace facilitator is any person engaged in the business of facilitating a retail sale of tangible personal property by listing or advertising the products of another person in any marketplace where sales at retail occur and collecting or processing payments from the purchaser, either directly or indirectly. The same $100,000 gross revenue threshold that applies to remote sellers also applies to marketplace facilitators. Third-party sellers whose products are sold exclusively through a collecting marketplace facilitator are not required to obtain a retail license or remit sales tax on those marketplace sales.

Source: S.C. Code § 12-36-71; SC DOR Marketplace Facilitator Guidance

South Carolina counties may impose additional local sales and use taxes if approved by voters via referendum. Local sales taxes authorized under S.C. Code Title 4, Chapter 10 include the Local Option Sales & Use Tax (§ 4-10-10 et seq.), Capital Projects Tax (§ 4-10-300 et seq.), School District Tax (§ 4-10-10), Education Capital Improvement Tax (§ 4-10-420 et seq.), Transportation Tax (§ 4-37-30 et seq.), County Green Space Tax (§ 4-10-1010 et seq.), and Tourism Development Tax (§ 4-10-910, municipal). The Catawba Tribal Sales Tax applies in York County under § 27-16-130(H). These local taxes are imposed in addition to the 6% state rate, and combined state and local rates vary by county.

Material updates since the last revision: • Williamsburg County is imposing a new 1% Capital Projects Sales and Use Tax, effective May 1, 2026, per SCDOR Information Letter #26-5 (2026). • Lexington County extended its 1% Capital Projects Tax through April 30, 2033 (continuing without interruption), also effective March 1, 2026. • Aiken County's 1% Capital Projects Tax was renewed through April 30, 2034 (with renewal cycles specified in the latest SCDOR releases).

The SCDOR publishes and regularly updates the official list of local tax jurisdictions, effective dates of newly imposed or renewed taxes, and the applicable combined rates. The official page is the primary source for rate boundaries, effective dates, and currently imposed local taxes: https://dor.sc.gov/sales-use-tax-index/local-sales-taxes.

Taxpayers must monitor SCDOR’s official schedules and tables each quarter for county-level changes, as individual counties frequently implement, renew, or expire local sales taxes through referendum. Recent SCDOR Information Letters and the agency’s dedicated local sales/use tax page are considered the controlling authority for current imposition and effective dates.

Source: SC DOR Local Sales Taxes Source: S.C. Code Title 4, Chapter 10 Source: SC DOR Information Letter #26-5 (2026)

South Carolina exempts sales at wholesale from sales tax under S.C. Code § 12-36-120(1), which defines "wholesale sale" to include sales of tangible personal property to licensed retail merchants, jobbers, dealers, or wholesalers for resale. Sales to end users or consumers are not wholesale sales and do not qualify for the exemption.

Burden-shifting through resale certificates

Section 12-36-950 creates a statutory presumption that all gross proceeds are subject to sales tax until the contrary is established. The burden of proving a sale is not a retail sale ordinarily rests on the seller. However, if the seller receives a resale certificate signed by the purchaser stating that the property is purchased for resale, the liability for the sales tax shifts from the seller to the purchaser. The certificate must include the purchaser's name, address, retail sales tax license number, and any other information the Department of Revenue considers necessary.

Form ST-8A and blanket certificates

The South Carolina Department of Revenue provides Form ST-8A, "Resale Certificate," for purchases of tangible personal property intended for resale. The form is not mandatory — sellers may accept other documentation that includes the required information — but use of the state form ensures compliance with statutory requirements. A single resale certificate may be maintained on file per customer (a "blanket certificate") rather than obtaining a separate certificate for each transaction. However, the seller retains the ongoing responsibility to examine subsequent purchases to determine whether they are for goods to be resold by the purchaser in accordance with the certificate on file.

Good-faith acceptance standard

The seller must accept a resale certificate in good faith to be relieved of liability. Good faith requires the seller to exercise reasonable prudence to determine the facts supporting the validity of the certificate, including honesty of intention and freedom from knowledge of circumstances that should alert the seller to make further inquiry. If facts on the certificate would lead a reasonable person to make further inquiry, the seller has not accepted the certificate in good faith. For example, a resale certificate for weed killer from a funeral home or for toilet bowl cleaner from a state police agency should prompt the seller to question whether the items will actually be resold. If a seller accepts a resale certificate in good faith and the purchaser later consumes the property rather than reselling it, the liability for the tax remains with the purchaser rather than reverting to the seller.

Out-of-state certificates, wholesaler exemption numbers, and drop shipment documentation

South Carolina accepts another state's resale certificate and number in lieu of a South Carolina retail license number. A wholesaler exemption number may also be used instead of a retail license number; a South Carolina wholesale exemption certificate will have "SC Code Section 12-36-120(1)" printed by the serial number. Use tax registration numbers are not retail license numbers and do not qualify for purposes of a resale certificate.

Special rules for drop shipments (three-party transactions): In drop shipment transactions, where an out-of-state seller (such as a manufacturer or distributor) ships goods directly to a customer in South Carolina on behalf of a purchaser (typically an out-of-state reseller not registered in SC), the out-of-state seller may accept a properly completed resale certificate from the purchaser—even if issued under another state's registration or using the MTC Uniform Sales & Use Tax Certificate. SCDOR Revenue Ruling #98-8 specifically confirms that a manufacturer/distributor drop shipping into SC can treat the sale as exempt for resale, provided the certificate contains all information required by S.C. Code § 12-36-950 and is retained by the seller. The Sales & Use Tax Manual (Chapter 8) reiterates these rules and adopts the guidance that the seller may rely on an out-of-state or MTC certificate if accepted in good faith and properly completed for drop shipment exemption purposes. Acceptance of these certificates does not immunize the seller from liability if not accepted in good faith or otherwise noncompliant.

Retention and audit requirements

The seller must maintain a copy of the resale certificate (including those accepted for drop shipment purposes) to substantiate the exemption during an audit. The certificate is not valid if it does not meet the statutory requirements, and the seller remains liable for the tax if the certificate is defective. South Carolina law requires businesses to retain exemption certificates and supporting documentation for at least three years. During an audit, the seller must produce certificates proving that purchases were legitimately exempt; missing documentation means those purchases become taxable retroactively.

Source: S.C. Code § 12-36-120; S.C. Code § 12-36-950; SC DOR Resale Certificate Guidance; Form ST-8A; SCDOR Revenue Ruling #98-8; SCDOR Sales & Use Tax Manual, Ch. 8

South Carolina exempts from sales and use tax machines used in manufacturing, processing, agricultural packaging, recycling, compounding, mining, or quarrying tangible personal property for sale under S.C. Code § 12-36-2120(17). The exemption also covers replacement parts and attachments to such machines, provided the parts, attachments, or replacements are integral and necessary to the operation of the machines and customarily so used.

"Integral and necessary" test

A machine qualifies for the exemption if it is integral and necessary to the manufacturing process and the product being manufactured is manufactured for sale. This standard replaced the prior "used directly" test following the 2003 decision in Springs Industries, Inc. v. SCDOR (99-ALJ-17-0153-CC). The court held that the exemption no longer applies strictly to machinery on the production line but now includes conveyances, quality control machines, and other equipment used as a function of the manufacturing process on an ongoing and continuous basis. The determination hinges on whether a machine is integral and necessary to the manufacturing process, not whether it is integral and necessary to the manufacturer's general operations—machines used for warehouse, distribution, or administrative purposes do not qualify.

Under S.C. Code Regs. 117-302.5, a machine qualifies as integral and necessary if it:

• Is used at a manufacturing facility;
• Performs an essential and indispensable function in the manufacturing process; and
• Is used on an ongoing and continuous basis during manufacturing.

What constitutes manufacturing

Manufacturing begins when raw materials are introduced to the first processing stage or machine. Material handling machinery used to transport in-process material from one process stage to another is exempt. The last machine to come within the exemption is that machine which discharges the finished product from the last machine used in the process.

Warehouse machinery used only for warehouse purposes—loading, unloading, storing, transporting raw materials, or moving finished products—is subject to tax unless separately exempt under the material handling systems exemption of S.C. Code § 12-36-2120(51).

Dual-use machinery and substantial-use standard

The statute requires "substantial," but not "exclusive," use of a machine in manufacturing for the exemption to apply. If material handling machinery is customarily used for a dual purpose (partly exempt and partly taxable) and is not otherwise exempt under § 12-36-2120(51), the machinery may be purchased tax-free under the machine exemption provided the exempt use represents a substantial portion of its use.

S.C. Code Regs. 117-302.5(b) defines "substantial" to mean the machinery or equipment must be used more than one-third of the time performing a manufacturing task. For example, a forklift used substantially to move materials from one stage of the production process to another (exempt) and also to load trucks (nonexempt) qualifies for the machine exemption.

Electricity used in manufacturing

S.C. Code § 12-36-2120(19) separately exempts electricity used by manufacturers, processors, miners, quarriers, or cotton gins to manufacture, mine, or quarry tangible personal property for sale. This exemption applies to electricity to provide lighting necessary for the operation of exempt machines and to electricity used to control plant atmosphere (temperature and/or moisture content) in the quality control of tangible personal property being manufactured or processed for sale.

The electricity exemption does not apply to sales of electricity used in administrative offices, supervisory offices, parking lots, storage warehouses, maintenance shops, safety control, comfort air conditioning, elevators used in carrying personnel, housekeeping equipment, machines used in manufacturing tangible personal property not for sale, cafeterias, canteens, first aid rooms, supply rooms, water coolers, drink boxes, unit heaters, and general lighting.

Exclusions and limitations

The machine exemption explicitly excludes automobiles and trucks under S.C. Code § 12-36-2120(17). Materials or equipment that might constitute a machine when not used for manufacturing, processing, compounding, mining, or quarrying tangible personal property for sale are not exempted.

The product being manufactured must be manufactured "for sale." Revenue Ruling #91-13 clarifies that the statute limits the exemption to machines used in manufacturing tangible personal property for sale and does not extend to machines a manufacturer uses to produce tools and supplies for its own use.

Certificate form and claiming the exemption

Manufacturers claim the exemption by providing vendors with Form ST-8, "South Carolina Exemption Certificate." The sixth checkbox from the top on the form is designated for "Machinery used in manufacturing." Both pages of Form ST-8 should be provided to vendors when purchasing exempt items.

Source: S.C. Code § 12-36-2120(17); S.C. Code § 12-36-2120(19); S.C. Code Regs. 117-302.5; SC DOR Chapter 14 – Manufacturers, Processors, and Compounders; SC Revenue Ruling #91-13

South Carolina imposes a maximum state sales and use tax ("Max Tax") on several specifically enumerated items under S.C. Code § 12-36-2110, in lieu of the standard state rate plus local taxes.

Which items are subject to the Max Tax? The following items qualify for Max Tax treatment under § 12-36-2110(A):

• Motor vehicles
• Motorcycles
• Boats and watercraft motors
• Aircraft (including unassembled aircraft intended for purchaser assembly, but not including accessories)
• Trailers or semitrailers pulled by a truck tractor and horse trailers (excluding house trailers, campers, or fire safety trailers)
• Recreational vehicles (including tent campers, travel trailers, park models and trailers, motor homes, and fifth wheels)
• Self-propelled light construction equipment with compatible attachments, capped at 160 net engine horsepower

Tax rate and cap amount For each of these items, South Carolina imposes a 5% sales and use tax, with a maximum tax of $500 per item. This cap applies to each individual item, regardless of gross price, and has been in effect since July 1, 2017 (prior cap was $300).

Exclusions and interactions

• Local sales and use taxes do NOT apply to Max Tax items; only the capped state tax is due.
• As of 2017, items subject to the Infrastructure Maintenance Fee (IMF) (primarily vehicles, motorcycles, and trailers requiring DMV registration) are EXCLUDED from the Max Tax, as they are subject to IMF instead of sales tax at registration.
• The Department of Revenue's Revenue Ruling #23-3 (April 26, 2023) defines "motor vehicle" for Max Tax purposes as including any motorized, self-propelled, wheeled vehicle not running on rails—this covers items such as ATVs, UTVs, golf carts, and certain race cars.

This structure ensures practitioners can determine both which items are capped and how the cap interacts with other state and local taxes, including recent developments in the definition of qualifying "motor vehicles."

Source: S.C. Code § 12-36-2110 Source: S.C. DOR Sales & Use Tax Manual, Chapter 10 Source: S.C. DOR Revenue Ruling #23-3

Direct answer: The South Carolina use tax is imposed at the same 6% state rate (plus applicable local use tax, if any) as the state sales tax. Purchasers must self-assess and remit use tax on tangible personal property purchased for use, storage, or consumption in South Carolina when a seller (including out-of-state or remote sellers) does not collect the South Carolina sales tax at the time of purchase.

Why: The use tax serves to complement the sales tax and prevent avoidance when items are purchased tax-free for use within the state. South Carolina Code § 12-36-1310(A) imposes the use tax on all tangible personal property purchased at retail for storage, use, or consumption in South Carolina, unless the sale is otherwise exempt. The rate for use tax mirrors the sales tax imposed under §§ 12-36-910 and 12-36-1110. A separate local use tax may be due, matching local sales and use rates approved by county referenda (see S.C. Code § 4-10-40(B)).

When purchaser must self-assess:

• If a retailer is not licensed to collect South Carolina sales or use tax (or simply does not collect it), the responsibility for reporting and remitting use tax falls to the purchaser.
• Use tax applies to purchases by individuals or businesses from out-of-state retailers (including online sellers) who do not collect SC sales tax.
• Examples requiring self-assessment include direct internet purchases, catalog orders, and purchases in another state where no SC tax is collected but the goods are brought into SC for use.

Procedural note: Business purchasers report use tax on their periodic sales and use tax returns. Individuals report it on SC1040 (if they have income tax filing obligations) or may use other DOR-reported channels for payment.

Exemptions: Property that would be exempt from sales tax if purchased from a SC retailer is typically also exempt from use tax; the statute provides a symmetrical list of sales and use tax exemptions.

Source: S.C. Code § 12-36-1310 Source: S.C. Code § 12-36-910 Source: S.C. Code § 12-36-1110 Source: S.C. DOR Local Taxes Reference

Caution / review status: Not yet human confirmed. All specific rates and exemption rules should be corroborated with current-year DOR publications for the latest updates on local tax changes or administrative practice, though the statutory base is stable as of 2026-06-16.

Businesses registering for South Carolina Sales & Use Tax are assigned a monthly filing frequency by default, with returns and payments due on or before the 20th day of the month following the taxable period. For instance, sales in January are due by February 20, with the same pattern continuing through December 31 due January 20. Source: SCDOR “Sales Tax” page due date table

Quarterly or annual filing frequencies are permitted only upon approval by the South Carolina Department of Revenue; taxpayers must request such changes in writing—either via a web message in MyDORWAY or by emailing SalesTax@dor.sc.gov. Source: SCDOR “Sales Tax” page

Due-date schedules by frequency:

• Monthly filing: Due the 20th of the month following each calendar month (e.g., March 31 → April 20).
• Quarterly filing (if approved): Due the 20th day of the month following each quarter end (March 31 → April 20; June 30 → July 20; September 30 → October 20; December 31 → January 20).
• Annual filing (if approved): Covers the calendar year ending December 31; return and payment are due January 20 of the following year.

On the "Tax Due Dates" page, SCDOR reiterates that returns and payments must be submitted no later than the 20th of the following month and confirms that alternate filing frequencies require SCDOR authorization. Source: SCDOR “Tax Due Dates” page

Summary Table:

• Filing Frequency Assigned: Monthly by default
• Monthly Due Date: 20th of next month
• Quarterly/Annual: Allowed only with written SCDOR approval
• Quarterly Due Date: 20th of month following quarter end
• Annual Due Date: January 20 for full calendar year

Source:

• SCDOR “Sales Tax” page (due-date tables and filing frequency guidance)
• South Carolina Business One Stop site (confirms default frequency and approval requirement)
• SCDOR “Tax Due Dates” page (due date rule and alternate frequency authorization)

Caution / Review Status: Not yet human confirmed.

Direct answer: South Carolina exempts sales of “unprepared food”—defined as food eligible for purchase with United States Department of Agriculture (USDA) food coupons—from the state 6% sales and use tax under S.C. Code § 12‑36‑2120(75). However, this exemption does not automatically apply to local sales and use taxes; groceries remain taxable at the local level unless the specific local tax law or ordinance provides its own exemption for unprepared food. The distinction is operational at checkout: exempt from the state portion, but possibly still subject to local taxes depending on statutory local provisions.

Update as of May 19, 2026: House Bill 5208 (2026 Act No. [TBD]) amended S.C. Code § 12‑36‑2120(75), clarifying that the exemption for unprepared food applies "without regard to any demonstration project pursuant to United States Department of Agriculture regulations that would limit the use of food coupons on otherwise eligible items for a limited period of time." This change means unprepared food retains its exemption even if federal USDA projects—such as limited-term SNAP pilot programs—restrict food coupon use for certain items temporarily. The intent is to prevent temporary federal limits from nullifying the state exemption during those projects.

Why:

• State-level exemption: Section 12-36-2120(75), effective since November 1, 2007, as amended May 19, 2026, exempts "unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons from the state sales and use tax, without regard to any demonstration project pursuant to USDA regulations..." S.C. Code Regs. § 117-337 aligns the definition of “unprepared food” with federal SNAP/EBT (food stamps) eligibility. Typical qualifying items are staple grocery foods—bread, fruit, vegetables, meats, dairy—while prepared meals, hot foods, soft drinks, alcoholic beverages, pet food, vitamins, and non-food items do not qualify for the exemption.
• Local taxes: S.C. Code Regs. § 117-337.5 clarifies that this exemption "does not apply to local sales and use taxes collected by the Department on behalf of local jurisdictions unless the local tax law specifically exempts sales of unprepared food." Some local taxes—such as the Capital Projects Sales Tax (S.C. Code § 4-10-330(C)(2)), Education Capital Improvement Sales and Use Tax (S.C. Code § 4-10-460(C)), and certain Transportation Sales Taxes (S.C. Code § 4-37-30(A)(16))—may exempt unprepared food, while others do not. Ordinance language or county ballot measures control, and these can be verified using SCDOR's current local sales tax reference tables (https://dor.sc.gov/sales-use-tax-index/local-sales-taxes).

Source support:

• State exemption and demonstration project protection: S.C. Code § 12‑36‑2120(75) (amended May 19, 2026)
• Regulatory description and SNAP alignment: S.C. Code Regs. § 117-337
• Local tax non-extension and local exemptions: S.C. Code Regs. § 117-337.5
• Local statutory exemption examples: S.C. Code § 4-10-330(C)(2) (Capital Projects), S.C. Code § 4-10-460(C) (Education Capital Improvement), S.C. Code § 4-37-30(A)(16) (Transportation)

Caution / review status: Not yet human confirmed. The May 2026 statutory amendment broadens and secures the exemption's scope whenever the USDA imposes temporary project-based SNAP restrictions. Local tax exemptions (and local ballot language) can change each tax year; practitioners should confirm with SCDOR’s updated charts (https://dor.sc.gov/sales-use-tax-index/local-sales-taxes). All cites reflect law and DOR guidance as of June 2026.

Source: S.C. Code § 12‑36‑2120(75) (as amended 2026) Source: S.C. Code Regs. § 117-337 Source: S.C. Code Regs. § 117-337.5 Source: S.C. Code § 4-10-330(C)(2) Source: S.C. Code § 4-10-460(C) Source: S.C. Code § 4-37-30(A)(16)

Direct answer: South Carolina is a destination-based sales tax state: the applicable state and local sales and use tax is determined by the location where the purchaser receives the tangible personal property (i.e., the delivery location), not the seller's place of business. Retailers must collect the combined state and local rate in effect for the customer's shipping address or place of possession.

Why: Under S.C. Code § 12-36-910(B), the sales tax is imposed on retail sales of tangible personal property delivered to a location in South Carolina. S.C. Code § 12-36-90(2), which defines "gross proceeds of sales," includes amounts charged for transportation to the place where the buyer takes delivery. The South Carolina Department of Revenue confirms in official guidance that sales are sourced to the delivery address for tax rate and reporting purposes, including for local option sales and use tax.

When goods are shipped, the delivery address controls. For in-person transactions (over-the-counter), the store or business location where the buyer receives the item is the taxable location. For remote sales, including internet, mail-order, and out-of-state transactions with goods delivered into South Carolina, local sales and use tax is imposed based on where the goods are shipped or delivered, not the seller's out-of-state location.

Local sales and use taxes (such as the Local Option Sales Tax, Capital Projects Tax, and others under S.C. Code Title 4, Chapter 10) are administered by the DOR and are required to be collected based on the “point of delivery” to the purchaser within the state. The DOR “Local Sales and Use Taxes” manual and official sales and use tax bulletins confirm that the combined state and local rates owed are calculated according to the destination where the buyer receives physical possession.

Source: Source: S.C. Code § 12-36-910(B) Source: S.C. Code § 12-36-90(2) Source: SC DOR Local Sales and Use Taxes Reference

Direct answer: South Carolina imposes a use tax at the same 6% rate as the state sales tax—plus any applicable local use tax—on the storage, use, or consumption in South Carolina of tangible personal property purchased at retail from out-of-state sources when no South Carolina sales tax was paid at the time of purchase. The obligation to pay use tax falls on the purchaser (individual or business) when the retailer does not collect South Carolina tax.

Legal basis and rate:

• S.C. Code § 12-36-1310(A) imposes a tax "on the storage, use, or other consumption in this State of tangible personal property purchased at retail for storage, use, or consumption."
• The standard state use tax rate is 6%, matching the rate imposed on retail sales under S.C. Code §§ 12-36-910 and 12-36-1110. Local option use taxes may also apply if adopted by county referendum, “in the same manner as the local sales tax,” with statutory process found in S.C. Code § 4-10-40.

Who owes the use tax:

• Any person (individual or business) who buys taxable property at retail from a seller who does not collect SC tax and brings, ships, or uses that property in South Carolina.
• This includes: (1) items purchased from out-of-state internet retailers, mail-order, or catalog sellers; (2) tangible property bought in another state and brought into SC by the purchaser; (3) goods purchased tax-free for resale but later withdrawn from inventory for use in SC (S.C. Code § 12-36-1310(B)).

Exemptions:

• Use tax does not apply to transactions exempt from sales tax. S.C. Code § 12-36-1310(C) provides that property "exempted from the sales tax imposed by Article 9 and Article 11 of this chapter is exempt from the use tax imposed by this article."

How and when to remit:

• The law specifies the use tax is due “at the time the purchaser brings, or causes to be brought, into this State the property for storage, use, or consumption” (S.C. Code § 12-36-1330(A)).
• South Carolina law does not prescribe in detail the procedural means for individuals and businesses to file use tax—remittance and reporting procedures (e.g., reporting on SC1040 for individuals, on periodic returns for businesses) are set by administrative regulation and DOR instructions, rather than by statute.

Source: S.C. Code § 12-36-1310 Source: S.C. Code § 12-36-910 Source: S.C. Code § 12-36-1110 Source: S.C. Code § 4-10-40 Source: S.C. Code § 12-36-1330

Caution / review status: Not yet human confirmed. Process details for filing/remitting use tax are governed by Department of Revenue administrative practice, not explicitly set out in statute. All cites are as of 2026-06-16.

Direct answer South Carolina requires sellers to apply local sales and use tax rates based on the destination where the purchaser receives tangible personal property—South Carolina is a destination-based state for local tax sourcing. The applicable local sales tax is determined by the location at which possession or delivery transfers to the customer, not the seller’s business address.

Why The South Carolina Department of Revenue (SCDOR) and primary statutory guidance specify that for both state and local sales and use tax purposes, the point of delivery or transfer of possession controls the local tax rate. This means that if goods are delivered to a customer in a county with an applicable local sales tax, or if the customer picks up the product at a store or warehouse in such a county, the seller must apply the local tax rate imposed by that jurisdiction. Conversely, if the delivery occurs in a county without a local sales tax, no local sales tax is due, regardless of where the sale was initiated.

SCDOR’s Policy Manual, Chapter 12, states the following: “If the local sales tax is due and paid in the jurisdiction where the purchaser receives delivery, the purchaser is relieved of liability for local use tax, even if the sale originated in another jurisdiction.” SC DOR’s website and FAQ reiterate that the local tax rate is determined by the delivery location for both in-person and shipped goods. The state’s characterization under the Streamlined Sales Tax guidance confirms that South Carolina is destination-based for local tax, affirming the statutory requirement to source transactions to where title or physical possession passes to the buyer.

Source support Source: SCDOR Sales Tax FAQ—Local Tax Sourcing Source: SCDOR Policy Manual, Chapter 12—Local Sales and Use Taxes Source: South Carolina SSTP Report—Confirmation of Destination-Based Local Tax

Caution / review status Not yet human confirmed. Practitioners should verify the latest DOR charts for local tax boundaries and any exceptions related to drop shipments or unique delivery terms.

Direct answer:

South Carolina generally does not tax services unless specifically enumerated by statute. The services subject to sales and use tax are limited and principally include:

• Communications services (telephone, cable, satellite, wireless, voice-over-Internet, etc.),
• Laundry, dry cleaning, and pressing services,
• Furnishing of accommodations (hotels, motels, inns, short-term rentals), and
• Sales of electricity.

Why / Statutory Classification:

• South Carolina sales and use tax statutes (S.C. Code § 12-36-910 and related sections) impose the tax on retail sales of tangible personal property, and only enumerate certain services for taxation.
• S.C. Code Regs. § 117-308 clarifies: “Charges for services rendered are not subject to the [sales] tax except as imposed by the statute.” It further states that unless the statute specifically imposes the sales tax on a particular service (such as laundry, electricity, communications, or accommodations), services generally are not subject to tax, even if they are provided in connection with a taxable sale.
• South Carolina DOR’s own public FAQs and published guidance for remote sellers explicitly confirm the narrow service list: “Services are typically not subject to South Carolina sales and use tax, except for communications, laundry and related services, accommodations, and electricity.”

What is NOT taxable:

• The vast majority of personal, professional, business, or repair-type services are NOT subject to sales and use tax in South Carolina unless specifically named by the legislature.
• Examples of services that are NOT taxable (unless bundled with taxable tangible goods): legal, accounting, consulting, most repair labor (unless parts are involved), medical, personal care, IT and software services, and similar categories.

Authority and source support: Source: S.C. Code Regs. § 117-308 Source: SC DOR Remote Seller FAQ

Caution / review status: Not yet human confirmed. List is strictly limited by statute and DOR guidance; practitioners should verify with SC DOR’s most current published documentation for any legislative changes or newly enumerated taxable service categories.

Direct answer: South Carolina applies local (county and municipal) sales and use taxes according to the location where the purchaser takes delivery of tangible personal property—the “delivery point”—not the seller’s business address, customer’s mailing address, or point of sale initiation. This destination/delivery-based sourcing controls local option sales and use tax reporting and collection for tangible goods.

Why: The South Carolina Department of Revenue (SCDOR) instructs that local taxes must be reported and remitted based on the county or municipality where the buyer receives delivery. Specifics include:

• Shipped goods: Physical delivery address controls, regardless of mailing address or selling location.
• In-person pickups: Tax is determined by the business location or warehouse where possession transfers.
• Drop shipments: Local tax applies based on the ultimate delivery address to the customer.
• Split deliveries: Tax allocated according to the portion delivered to each jurisdiction.

The mailing address on an invoice does not control; it is the place of “physical delivery or transfer of possession” that governs the applicable local rate. DOR manuals and FAQs provide the operational guidance supporting these rules.

Digital goods and services: As of 2026-06-17, no DOR regulation, statute, or officially published guidance addresses local tax sourcing for digital goods or taxable services. Official guidance refers only to tangible personal property. Practitioners should not assume delivery-based destination sourcing applies to digital products or services unless the DOR or General Assembly addresses this specifically.

Source: SCDOR Local Sales Tax Sourcing Guidance Source: SCDOR Local Sales and Use Tax Manual, Section 4 (Sourcing and Reporting by Delivery Point)

Caution / review status: Not yet human confirmed. No primary statutory or regulatory authority currently addresses local tax sourcing for digital goods or taxable services; only tangible personal property sourcing is covered in official guidance as of 2026-06-17.

Unable to confirm as of 2026-06-17. (For digital goods/services sourcing)

Direct answer: As of January 1, 2025, a remote seller whose inventory is stored in a third-party South Carolina warehouse or fulfillment center (such as through Amazon FBA) does not have physical presence nexus solely on the basis of maintaining inventory in such a facility. South Carolina Code § 12-36-2691 explicitly provides that "the maintenance, by a marketplace facilitator on behalf of a marketplace seller, or by a marketplace seller, of inventory, including inventory in a warehouse or fulfillment center, in this State does not, by itself, constitute a physical presence." Remote sellers therefore are not automatically required to register, collect, or remit sales and use tax solely due to third-party inventory storage; their collection obligations will be determined by economic nexus thresholds (e.g., $100,000 in annual gross South Carolina sales) or other nexus-creating activities explicitly listed in the statute.

Why: Prior South Carolina policy and guidance treated inventory storage (including in third-party warehouses) as a physical presence that triggered sales and use tax nexus for remote sellers. However, with the enactment and effective date of S.C. Code § 12-36-2691 (added by Act 63 of 2024, effective January 1, 2025), the law now states that such storage does not, in itself, create physical presence for sales and use tax purposes. This provision preempts prior Department of Revenue positions taken in policy manuals and FAQs, particularly as they pertained to Amazon FBA and similar third-party arrangements. Remote sellers must instead look to economic nexus thresholds or other nexus-creating activities to determine collection and filing obligations.

Source support:

• Authority: S.C. Code § 12-36-2691 (added by Act 63 of 2024, effective January 1, 2025).
• Note: The Department of Revenue's previous interpretation requiring sales tax collection by remote sellers with in-state inventory is overridden for inventory maintained solely in third-party locations by this statute as of 2025.

Caution / review status: Not yet human confirmed. The shift is statutory and in force as of January 1, 2025. Practitioners should confirm if any regulatory or practical guidance has since been issued interpreting this new language, especially in connection with hybrid fulfillment or where additional in-state activities go beyond mere inventory presence.

Source: S.C. Code § 12-36-2691

South Carolina law does not distinguish between paper and electronic formats for resale exemption certificates: the South Carolina Department of Revenue (SCDOR) allows certificates to be provided, signed, and retained in electronic form as long as all statutory content and good-faith requirements are met. This includes scanned images, digital scans of ink signatures, and faxed forms, and—by operation of the Uniform Electronic Transactions Act (UETA)—may include digitally executed signatures, though DOR guidance as of 2024 does not address digital signatures on resale certificates explicitly.

Electronic records and signatures—authority base:

• South Carolina’s adoption of the Uniform Electronic Transactions Act (S.C. Code Ann. § 26-6-10 et seq.) gives legal effect to electronic records and electronic signatures in state transactions except where a specific law requires a non-electronic format. There is no provision in the sales tax statutes or resale exemption law requiring a paper certificate or original wet-ink signature.
• The SCDOR’s Resale Certificate guidance specifies: “Certificates may be provided in any form, including electronic or paper, as long as the seller maintains a record that is legible and contains all required information.” The same page affirms: “You may retain exemption documentation by paper, or in electronic format/image, including digital scans and facsimiles.”

Content, retention, and audit requirements:

• Sellers are responsible for ensuring a resale certificate—regardless of format—contains all required information under S.C. Code Ann. § 12-36-950 (purchaser info, signature, representation for resale, identification/license number, etc.) and for accepting it in good faith. If accepted in good faith, the burden to prove proper use of the exemption shifts from seller to purchaser.
• For record retention, S.C. Code Ann. § 12-54-210 requires that all tax records—including exemption certificates—be retained for at least three years, but the SCDOR does not require a particular medium. The DOR’s own guidance, under the “Resale Certificate” section, confirms that scanned, electronic, or faxed certificates are valid so long as complete and accessible for audit. There is no requirement in statute or DOR guidance that the certificate be maintained in its original format, so long as the electronic record is clear and all elements are present.

Digital signatures and marketplaces—scope and limit:

• The statutes and DOR policy as of 2024 do not explicitly address whether a typed or cryptographic digital signature (rather than a scanned/written one) is sufficient, but under UETA, electronic signatures (including digital) on commercial forms are generally valid unless a specific provision precludes them. Because neither the statute nor the published DOR guidance requires a non-electronic or "original" signature for resale certificates, a properly executed electronic signature is, by operation of UETA, presumed valid for these purposes. However, practitioners should recognize this is based on general law and DOR silence, not an explicit DOR pronouncement about digital signature technology.
• No published statute, regulation, or DOR guidance as of 2024 imposes separate or heightened requirements for resale certificate acceptance or retention by third-party platforms, digital marketplaces, or electronic reseller systems. The rules on content, good faith, and audit retention are the same irrespective of transaction method.

In summary: South Carolina recognizes electronic resale certificates and digital format retention for audit, with compliance focused on certificate content and legibility. Acceptance of true digital signatures is presumed valid under UETA but not explicitly addressed in DOR sales tax publications as of 2024.

Source: S.C. Code Ann. § 26-6-10 et seq. (UETA) Source: S.C. Code Ann. § 12-36-950 Source: S.C. Code Ann. § 12-54-210 Source: SCDOR Resale Certificate Guidance