Maximum Sales Tax

A maximum sales tax of $300 is imposed on the sale or lease of motor vehicles, boats, aircraft, motorcycles, trailers or semi-trailers pulled by a truck tractor, horse trailers, recreational vehicles and self-propelled light construction equipment. The $300 maximum tax also applies to the sale of musical instruments and office equipment sold to religious organizations. Sellers must submit Form ST-382 for capped items sold to religious organizations.

Motor Vehicles

Sales of new or used motor vehicles, trailers, semi-trailers, pole trailers and horse trailers to residents of another state are taxed at the rate imposed by the purchaser's state of residence. The tax cannot exceed the $300 maximum tax imposed by South Carolina on motor vehicles and trailers (except pole trailers). When a nonresident will not receive credit for sales tax paid to South Carolina for a motor vehicle or trailer and his home state does not grant reciprocity to South Carolina residents, no sales tax will be charged. Form ST-385 must be completed on each vehicle sold to a nonresident.

 Mobile Homes

The first 35% of the selling price of a new or used mobile home is exempt from sales and use tax. After allowing for the exemption, the maximum tax imposed on the sale is $300 plus 2% of the remaining sales price exceeding $6,000. The 2% may be waived if certain energy efficiency levels are met in the mobile home.

Form:

ST-455

Note: Please use ST-389 only for sales that are not subject to the maximum sales tax.