SC Department of Revenue
 
 
 
 
 
 
 
 
 
 
 
 
Business Tax Guide

 

Business Tax Guide 

If you wish to print sections of this document, you may do so by selecting what you want to print, click on "File", "Print", and click on "Selection." The entire document may be printed by clicking on "File", "Print," "All."

This publication may not be relied upon as a substitute for obtaining professional advice and researching original sources of authority. Nothing in this publication supercedes, alters, or otherwise changes provisions of the South Carolina Code, regulations or department advisory opinions.

The South Carolina Department of Revenue would appreciate your comments or notifications of any errors. Such remarks should be sent to : Taxpayer Education Coordinator, Department of Revenue, PO Box 125, Columbia, SC 29214 or E-Mail at hornsbj@sctax.org

Taxpayers' Bill of Rights

Introduction

Electronic Filing Requirements 

About Forms

Electronic Funds Transfer

Why Most New Businesses Fail

Forms of Business Organization

Record Keeping

Establishing Good Practices & Procedures

Record Retention

Postage Rate Information

Sales & Use Tax/The Basics

Accommodations Tax

Casual Excise Tax

$300 Maximum Tax

Manufactured Housing

Local Option Sales and Use Tax

Exemptions and Exclusions

Reporting and Paying Sales/Use Tax

Discounts for Timely Payments

Sales/Use

Cash Deposit or Bonds Required

Sales Tax Holiday

Receive E-Mail Notification on updates

Forms to use for Sales/Use Tax

Withholding Taxes

How to Calculate Withholding Payments

Making Withholding Payments

NonResident Withholding Agents

Forms to use for Withholding Tax

Other SC Taxes You May Need to File

About W-2s

Property Tax

Assessment Ratios

Business Personal Property

Property Tax Exemptions

Fee In Lei of Property Taxes

Deed Recording Fees

Alcoholic Beverages

Beer and Wine Tax

Mini Bottle License

Admissions Tax

Reporting/Paying Admissions Tax

Bingo Tax

Reporting and Paying Bingo Tax

Tobacco Products Tax

Electric Power Tax

Estate Tax

Forest Renewal Tax

Highway Use Tax

Dry Cleaning Facility

Low Level Radioactive Waste Tax

Solid Waste Excise Tax

Motor Fuel Tax

Corporate Income Taxes

Job Development Credits

Job Retraining Credits

Corporate Filing Requirements

Corporate Tax Forms

County Classifications

Limited Liability Companies and Partnerships

Partnerships

Individual Income Tax

Additions to Income

Deductions from Income

Income Tax Rates

Income Tax Credits

Estimated Tax Payments

Part Year Residents

Extensions to File

Individual Income Tax Electronic Filing

Online State and Federal Agencies Offering Assistance

Local Government Regulations

Small Business Development Centers

Occupational and Professional Licensing

County Auditors Assessors and Treasurers

State Tax Departments

SC Dept. of Rev. Forms Request System

Where to get help at the Department of Revenue

South Carolina Department of Revenue

Post Office Box 125 ? 301 Gervais Street ? Columbia SC 29214

Congratulations on opening your business! Businesses, both large and small, are vital to South Carolina's long-range economic stability. We believe that by helping businesses succeed, we ultimately aid in the state's prosperity.

If you've completed the Business Tax Application, form SCTC-111, you've already taken the first step and you've received your new license either in person or through the mail.

If you personally received your business license from one of our Taxpayer Service Centers, you've already made contact with a great resource ? our staff of professionals. If you have questions or concerns please feel free to contact any of our Taxpayer Service Centers or visit our website at www.sctax.org.

The Department has five Taxpayer Service Centers across the state.  See the Telephone Directory in this publication for the addresses, telephone and fax numbers for each location. We also have staff available at satellite locations at scheduled times.

If you received your license at our Business One Stop (DORBOS) or by mail, this business tax guide is intended to give you as much information as you need. However, please feel free to call any of our Taxpayer Service Centers or our main office in Columbia, should you have additional questions or concerns.

The following are some of the ways you can help us serve you better:

  •  Use appropriate forms. You'll be receiving a packet of preprinted forms in the next few weeks. However, until they are received, please get your forms on this website by going to Forms and Instructions.
  • Be sure to use your correct South Carolina License and Federal ID numbers. Write them here so you'll have these very important numbers written down in more than one place.

My South Carolina Retail License # My Federal ID #

My South Carolina Business/Corporate Tax # Other #

My South Carolina Withholding #

I MUST File: __ MONTHLY ___ QUARTERLY ____ ANNUALLY

  • File your returns even if you have no income to report or owe no tax. Failure to do so may result in an estimated assessment of your tax liability as well as penalties and interest. Zero sales and zero pay withholding can be done by TeleFile.
  • Make sure you've signed all forms and attached your checks. Completely and carefully check that you've signed where necessary before mailing your forms.

Did you know you might be able to file electronically?

 There are five programs to help you:

 1.  Business Tax TeleFile for Reporting Zero Sales & Withholding    Taxes

 Sales tax filers who have zero gross proceeds of sales, rentals, use tax, and withdrawals for own use for the filing period, may use our Business Tax TeleFile for Sales & Use Taxes.  Withholding tax filers who have a zero payment amount due with the return for the filing period may also use the Business Tax TeleFile System for Withholding Taxes. 

To start the process, please dial (803) 898-5918 and follow the recorded instructions.  First time users are required to register on the system prior to filling their first return.  The process for Sales Tax filers takes less than 5 minutes to complete.  It takes about 10 minutes to complete the process for Withholding Tax filers.

If assistance is needed with sales tax related questions, you can contact the DOR Sales Tax Help Line at (803) 898-5788.  For assistance with withholding tax related questions, please contact the DOR Withholding Tax Help Line at (803-898-5752. 

 For all TeleFile support issues, you should contact the Business Tax TeleFile Help Line at (803) 898-5111 or contact us by e-mail at www.telefile@sctax.org.

2.    Electronic Funds Transfer

Businesses that have paid $15,000 or more during any one filing period during the past year are required to pay electronically. Taxpayers with less than $15,000 in tax due during a filing period may participate voluntarily with the Electronic Funds Transfer (EFT) Program.  For further information call 1-800-476-0311.

Businesses who participate in the Electronic Funds Transfer will need to use the following codes to identify the type of tax they are filing:

 

TAX TYPE

CODE

TAX TYPE

CODE

911 User's Fee

42714

Electric Power

11701

Admissions      

10901

Indigent Care

43105

Alcohol:

 

Alcohol Case Additional

Alcoholic Case Retail

Alcoholic Case Wholesale

Alcoholic Liquor Excise

Alcoholic Liquor Surtax

 

Motor Fuel:

 

11005  

     Environmental Impact

32312

11004

     Gasoline

32301

11003

     Inspection Fee

32314

11001

     Special Fuels

32101

11007

Radioactive License Fee

41103

Beer Excise

11202

Tobacco Products:

 

Bingo

12550

Cigarettes

11401

Commercial Nuclear Waste

11101

Other Tobacco Products

11408

Contingent Nuclear Waste

11103

Wine:

 

Deed Recording Fees

11603

 Wine Additional

110301

Dry Cleaning:

Stoddard Solvent Fee

Tetra Solvent Fee

 

 Wine Excise

11303

33518

Withholding

10811

33516

 

 

 

Corporate Taxpayer

Income Code

License Code

Quarterly Estimated Code

Corporation (Domestic or Foreign)

10804

10401

10807

Bank

10101

N/A

10103

Savings & Loan

10201

N/A

10203

Utility

10804

10601

10807

3.    Electronic Funds Transfer (EFT)/Electronic Data Interchange (EDI)

 The Department of Revenue has designed an Electronic Filing Program (EFT/EDI) for the transmission of your payment and filing your tax return information for sales, use, accommodations, local option and/or special local taxes.

Businesses that have paid $15,000 or more during any one filing period during the past year may be required to pay electronically. Taxpayers with less than $15,000 in tax due during a filing period may participate voluntarily with the Electronic Funds Transfer (EFT) Program.

If you are interested in filing and paying one tax through EFT/EDI, you must file and pay all of these taxes through EFT/EDI.  For example, you cannot file and pay sales tax through this program and pay local option through a conventional process.

Be aware that you must file both the return and the payment electronically; you cannot choose to do one part electronically and the other in a conventional method.

Electronic payments can be made by using the ACH (Automated Clearing House) debit or credit method.

Advantages of participating in the EDI/EFT program include:

  • Eliminates paperwork, no more paper returns and checks
  • Reduces return error potential due to no re-keying; no manual intervention
  • Accurate timing of payment from your bank account
  • Comprehensive audit trail for both the return and the payment

To register, please call 1-800-379-9409 or e-mail BusinessEFT@sctax.org.

4.      Electronic Payment Over the Internet

You may also make WithholdingTax, Corporate Tax Declarations and delinquent payments online by using our ePAY system from our website.  There is no cost to you and no registration is required.  Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft).

5.      Individual Income Tax Electronic Filing

 Using FastFile, South Carolina accepts electronically filed state income tax returns.  Refund and balance due returns are accepted electronically. Refunds may be deposited directly into your bank account.

 FastFile lets you use one of four programs to file your South Carolina tax returns. Visit the Department of Revenue website at www.sctax.org for more information on each of these options. They are:

 TeleFile

    • Use your touch-tone telephone
    • File a simple Individual State Tax return in about eight minutes

 SCnetFile

    • File your South Carolina state tax return through the Department of Revenue's website (www.sctax.org)
    • You can pay your balance due by credit card
    • It's a free service

 Online Filing

    • Easy access to tax preparation software
    • Tailored to fit your state and federal tax returns.

 Electronic Filing

    • A professional tax preparer can send your South Carolina state and federal tax returns using a computer modem
    • It's fast, safe and easy

A Word About Forms

The state and federal forms used in this guide are for informational and educational purposes.

You may obtain additional state forms using one of three methods:

  1. Visit the South Carolina Department of Revenue website at www.sctax.org and go to the Forms and Instructions button.
  2. Receive forms by fax when calling the South Carolina Department of Revenue Forms Request System statewide at (800) 768-3676 or 898-5320 in Columbia
  3. Visit any of the five Taxpayer Service Centers located around the state

 For copies of federal forms you may also use one of three methods:

  1. Visit the Internal Revenue Service website at www.irs.gov
  2. Using the IRS publication number, you may call (800) 829-3676
  3. Visit the Internal Revenue Service office nearest you

 For copies of other South Carolina state forms:

Visit the South Carolina State Government website at www.myscgov.com  

Taxpayers' Bill of Rights

The Taxpayers' Bill of Rights gives you certain rights when dealing with the South Carolina Department of Revenue. These include the right to:

  1. File an application for relief with the taxpayer advocate in a situation when you are suffering or about to suffer a significant hardship as a result of the manner in which the Department is administering the tax laws.
  2. Receive advance notification that your hearing may be recorded and be furnished with a copy of that hearing.
  3. Receive the publication of clear, concise and non-technical about statements of taxpayer rights mailed with each notice of audit.
  4. Have your attorney, accountant or other designated agent present at a hearing.
  5. Have the Department establish an appeal process for modifying or releasing liens.
  6. Bring action against the state for damages suffered because of disregard of Department policy by an employee.

For additional information about the Taxpayers' Bill of Rights contact the Taxpayer Rights Advocate at the South Carolina Department of Revenue (803) 898-5444 or by mail at Taxpayer Rights Advocate, Department of Revenue, PO Box 125, Columbia SC 29214 or

E-mail through our website www.sctax.org.

Checklist for New Businesses in South Carolina

 For additional assistance, a complete listing of contact information and telephone numbers is located in the Government Assistance Section of this guide.

Will you sell or lease any goods or provide any services?

  • You may need a retail license
  • You should collect and report the sales tax on any sales you make
  • Most services are not subject to sales tax ? check to see if this applies to your specific situation

Will you have any employees?

  • Register as a withholding agent with the Department of Revenue and the Internal Revenue Service to withhold income taxes from your employees' wages
  • You should register to pay unemployment contributions with the Employment Security Commission
  • You may need to register with the Workers Compensation Commission. There may be other state, federal and local government agencies where you may need to register. Visit www.myscgov.com ? click on business and go to SCBOS for more information

Will you purchase any items for your business?

  • If the items are to be used in your business and you did not pay sales tax at the time of purchase, you should pay sales and use tax
  • f you resell items with a markup, sales and use tax is due, even if you paid tax when you bought it

Does your business own equipment, furniture or fixtures?

  • File a business personal property return each year. "Personal property" is a technical term for items other than real estate and inventory

Will you be selling beer, wine or liquor?

  • You must obtain an alcoholic beverage license. (If you are a wholesaler of alcoholic beverages, tobacco, gasoline or soft drinks, special tax rules may apply to you.)

Does your business provide overnight accommodations?

  • Register to collect and remit the accommodations tax on all your room rentals, vacation cottages or home rentals

Is your business a place of amusement?

  • Apply for an admissions tax license

Will you own and operate coin devices, operated game machines or table games including "juke boxes," pool tables or foosball tables?

  • Register games and owner with the South Carolina Department of Revenue

Do you sell tires, batteries, oil or appliances?

  • Register to collect the solid waste excise tax on your sales

Will your business incorporate?

  • Register with the Secretary of State
  • Register with the South Carolina Department of Revenue

Will you purchase a business from a previous owner?

  • Check with the South Carolina Department of Revenue to confirm that the former business has paid all its taxes

Why Do Most New Businesses Fail?

Your new business is more likely to succeed if you avoid the following pitfalls. Some of the reasons most new businesses fail are:

  1. Failure to pay taxes in a timely manner
  2. Filing $0 Business Personal Property return when the business has depreciable assets reflected on the income return 
  3. Failure to file and pay Business Personal Property return 
  4. Failure to pay sales tax on marked-up items 
  5. Failure to pay use tax on items used in the business 
  6. Failure to use correct identification number 
  7. Not using your preprinted forms with identification numbers 
  8. Failure to advise Department of Revenue of address change 
  9. Failure to file $0 returns to the Department of Revenue

We want your business to succeed!

Here are some things you need to do to help make that happen:

  • Read this guide thoroughly ? it contains very important information
  • Get assistance whenever you need it! See the list of contact information and telephone numbers in the Government Assistance section of this guide for names, telephone numbers and websites

 Forms of Business Organization

There are many types of business entities including sole proprietorship, partnership, limited liability partnership (LLP), corporation, limited liability company (LLC), and single member limited liability company.

° Sole Proprietorship

A sole proprietorship is a business that is owned by an individual who is solely responsible for all aspects of the business. The owner is personally responsible for all debts of the business, even in excess of the amount invested in the business.

 ° Partnership

A partnership is a legal entity that is jointly owned by two or more individuals. As in the sole proprietorship, the owners are personally responsible for all debts of the business, even those in excess of the amount invested in the business.

° Corporation

A corporation is a business that is formed and authorized by law to act as a single taxpayer, although constituted by one or more persons, and is legally endowed with rights and responsibilities. It is advisable to consult a lawyer when organizing a corporation to assure full compliance with state and federal laws.

° Limited Liability Company

A limited liability company is an unincorporated business association that provides its owners (members) limited liability and flexible management and financial alternatives. An LLC allows you the choice of having the entity taxed as a partnership or as a corporation and provides the limited personal liability of corporations. 

° Single Member Limited Liability Company

A single member limited liability corporation that elects to be disregarded for federal income tax purposes will be disregarded for state tax purposes. The revenue, expenses, income, assets, liabilities and equity of the disregarded entity will flow up from the owner to the limited liability company as if it were a division of the owner. Therefore, a single member who is a corporation will consider income from the Single Member LLC as income from one of its divisions. An individual member would consider the income from a Single Member LLC as if it were Schedule C income.

Record Keeping

The best time to set up a record-keeping system for a business is before you start the business. Experience clearly indicates that the use of an adequate record-keeping system increases the chances of business survival.

The key to successful record keeping is a commitment to a system that is:

  • Simple to use
  • Easy to understand
  • Reliable
  • Accurate
  • Consistent
  • Designed to provide information on a timely basis

However, no matter how simple and easy the system is, it will not happen by magic.

You must make it work. Practice the following rules and record keeping will be less of a chore:

  • Keep all records in one place
  • Develop a regular schedule for recording information

Every business should have up-to-date records that provide the following:

  • Complete and accurate tax information
  • An accurate record of the financial performance of the business
  • A basis for sound planning for the future
  • A basis for discussion with partners, potential lenders and others

Records to Keep

Income. The money you receive from sales or services is income. Your records can help identify the source of income.

Receipts can be identified using sales slips, cash register receipts and invoices. It is helpful to categorize income as you receive it and to keep separate records of all sales tax collected.

Expenses. All funds paid out should be recorded. Each expenditure should be identified according to its use and whether it is a capital or non-capital expenditure.

Account receivable. You should keep a record of money owed to you and the reason.  Most new businesses cannot afford to offer extensive credit.  A system should also be developed to collect money owed to the business and to keep track of the age of the receivables.

Accounts payable.   A record of goods or services received on account or credit is called an accounts payable. You must pay for these goods and services. Consider them a cost of business.

Inventory.   Develop a system to record inventory.  You will need to record the value of your beginning and ending inventory each year for tax purposes.

Depreciation of equipment and fixed assets. Many businesses need equipment, fixtures and facilities in order to function. The use of these items results in certain loss of value and at some future date these items will need to be replaced. This is a cost of business operations and must be a part of a complete record-keeping system.

Insurance records. Most businesses need liability and property loss insurance. You will need to keep a record of each policy, dates effective and annual premiums.

Payroll records. If you have employees, record keeping is more involved. It is necessary to keep records of payroll payments including the rate of pay, federal and state withholding tax, unemployment tax, workers compensation, pension plans, etc.

Establishing Good Business Practices and Procedures

The suggestions listed here can help a new business owner simplify the record-keeping process.

If these guidelines are used before the transactions begin to occur, confusion, duplication and lost tax benefits can be avoided.

Maintain separate business checking accounts, charge accounts and savings accounts.

This ensures that transactions are clearly identified as business, and a supporting document is created for each check written or deposit made. A checking account eliminates the need for cash payments which are difficult to track and support without records.

A separate checking account is only effective in tracking expenditures if you resist writing checks payable to "Cash" or yourself.

Pay all bills by electronic funds transfer (EFT), credit card or check.

This is your record of having paid bills and makes it easier to analyze expenditures.

Do NOT pay in cash.

Create a petty cash fund. For small expenses it is often practical to pay cash, retain the receipt, and reimburse yourself through a petty cash fund.

Be sure to document the receipts and reconcile the fund on a regular basis.

Develop a filing system.

Keep records supporting items in a tax return until the statute of limitations for that return expires (usually six years).

 If you depreciate or sell an asset, you should keep records that verify your purchase as long as they are needed to figure the basis of the original or replacement of the property. Keep your old tax returns. They help jog the memory in preparing subsequent years' returns. Start with something simple and modify or expand as needed.

Prepare income deposit and disbursement procedures.

Sketch out the steps you follow when receiving cash, recording and depositing money.

 Don't keep cash or checks lying around which can invite theft or loss. Endorse all checks for deposit only as soon as you receive them.

Decide on a routine for receiving bills or outstanding payables, checking the accuracy of the invoice, paying, recording the expenditure and filing the documentation associated with the transaction.

Set aside time on a monthly basis to review the accounts, balance the business checkbook and total the income and expenditure accounts.

 Keep an accurate auto mileage log.

 Nearly all small business owners are eligible for a vehicle expense deduction.

Record Retention

It may seem premature to worry about record retention during the start-up of a business, but remember that once records are discarded it is unlikely they can be replaced. Here are a few guidelines to ensure that you keep the appropriate records.

  1.  Records directly related to the preparation of tax returns should be kept a minimum of three years after the due date of the return. However, it is a better practice to keep such records for six years since the statute of limitations allows six years for audit under special circumstances.
  2.  Keep all tax returns as filed and amended indefinitely. Such returns are often important for carry-overs of tax credits and operating losses.
  3.  Records that are permanent should be kept in a fireproof file. Examples include cashbooks, fixed asset and depreciation schedules, general ledgers, journals and financial statements.
  4. Canceled checks, bank statements, accounts payable and receivable records, inventory schedules, payroll records, sales and invoicing details should be kept for six years.

Record Keeping Tips

Keep the following tips in mind as you develop your record keeping system:

  • Get a receipt for everything, even paper and pencils.
  • No receipt means NO deduction.
  • Post all expenses regularly to avoid end-of-the-month and end-of-the-year pile up.
  • Simplify record keeping by maintaining accurate, yet uncomplicated books.
  • Give a sales slip to each customer. This serves as their receipt and your record.
  • Use petty cash with care. Write a voucher each time money is used. Careless use of petty cash can take a large bite out of your profits.
  • Be sure to have a business checking account. Pay all bills and deposit business receipts into the account. You can even pay yourself out of this account. Keep all records for six years for tax purposes.
  •  NEVER CONSIDER TAX MONIES AS YOUR BUSINESS OPERATING CASH.

Postage Rate Information

When mailing forms be certain that the postage on your envelope is sufficient and your complete return address in the upper left corner. Also, please remember:

·        Envelopes with insufficient postage will be returned to you by the post office

·        Envelopes with insufficient postage will be returned and will not be considered timely filed if not received by the due date

·        If your envelope contains more than three pages, it may require additional postage; consider taking it to the post office to determine the proper postage

For Additional Information:

For more information pertaining to taxes, visit the Department of Revenue's home page on the Internet at www.sctax.org. Tax laws, regulations, policy documents, publications, various links and attorney general opinions may be found there.

The Office of Taxpayer Education at the Department of Revenue offers a variety of tax and business-related seminars and workshops on a wide range of topics on a regular basis. Contact Taxpayer Education at (803) 898-5420 or visit the Department of Revenue website www.sctax.org and look under the Tax Workshops button to receive additional information.

Sales and Use Tax

The Basics

Sales tax is imposed on the sale of goods and certain services in South Carolina. Sales tax or use tax is imposed on goods and certain services purchased out of state and brought into South Carolina or on which no sales tax has been paid. The statewide sales and use tax rate is 5%. Counties may impose an additional 1% local option sales and use tax and 1% special local taxes if voters in that county approve the tax. Generally, all retail sales of tangible personal property are subject to the state's sales or use tax.

Sales Tax

The sales tax also applies to the fair market value of tangible personal property previously purchased by the retailer at wholesale (for re-sales), but used by the retailer or any other person withdrawing tangible personal property to be used and consumed by them. In addition to applying to items one normally thinks of as tangible personal property - furniture, appliances, clothing, etc. - the sales and use tax also applies to communications like local telephone services, cable television services, satellite programming services, faxing services and paging services, as well as laundry and dry-cleaning services, accommodations and electricity.

A 10% sales tax applies to telephone services to 900 and 976 exchanges. The sales and use taxes imposed extend to gross proceeds accruing or proceeding from the business providing 900/976 telephone service and all revenues derived from this imposed tax must be credited to the general fund of the state.

Use Tax

Anyone who buys tangible personal property from out-of-state and brings it into South Carolina is responsible for paying a use tax at the rate of 5% plus any applicable local taxes on the sales price. Businesses that make non-taxed purchases out of state, report and pay the use tax on their monthly sales and use tax return, State Sales and Use Tax Return, form ST-3.

A taxpayer is liable for the use tax imposed on tangible personal property if, upon payment of the sales and use tax, the personal property is:

  • Purchased in another state, upon which a sales or use tax was due and not paid in the other state
  • The amount of the sales and use tax due and paid in the other state
  • And is allowed as a credit against the use tax due in this state

If the amount of the sales or use tax paid in the other state is less than the amount of use tax imposed, the purchaser will pay the difference. The same rules for sales tax also apply to use tax.

Accommodations Tax

The rental of transient accommodations is subject to a 2% accommodations tax in addition to the 5% sales tax (and the 1% local tax, if applicable). If you rent out rooms or spaces at hotels, campgrounds, boarding houses, etc., the accommodations tax also applies to rentals of your vacation home or second home.

Rentals of the same room to the same person for 90 continuous days are not subject to the tax. If you rent a room in your place of residence and the house has less than six bedrooms, the accommodations tax would not apply. If you rent transient accommodations for no more than one week each calendar quarter, a retail license is not required, but you still must report and pay the accommodations tax annually.  Additional guest charges such as movie rentals, room service, valet services, etc. are subject to the 5% sales tax.

You are required to obtain a retail license and collect and pay the accommodations tax at the same time you file your sales tax return.

For additional information, go to the South Carolina Department of Revenue website, www.sctax.org and see SC Revenue Ruling 98-21.

Casual Excise Tax

South Carolina imposes a casual excise tax at the rate of 5% for the issuance of every title or other proof of ownership for motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals.

Generally, the maximum casual excise tax is $300 ? for additional information, see SC Revenue Ruling #95-12.

The payment of this tax is a prerequisite to the titling, licensing, or registration for the above-mentioned items. Exempt from this tax are transfers between members of one's immediate family.

$300 Maximum 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 certain self-propelled light construction equipment.

The $300 maximum tax also applies to the sale of musical instruments and office equipment sold to religious organizations. Purchasers must submit a Religious Organization Affidavit for Musical Instruments/Office Equipment, form ST-382 to the seller for items purchased by religious organizations.

Sales of Motor Vehicles to Nonresidents

Sales of new or used motor vehicles, trailers, semi-trailer and pole 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.

For South Carolina sales tax purposes, sales to nonresidents of new or used motor vehicles, trailers, semi-trailers, and pole trailers that are registered and licensed in the purchaser's state of residence, are taxed at the lesser of the:

  1. Sales tax which would be imposed on the purchaser's state of residence, or
  2. Tax would be imposed under Chapter 36 of the South Carolina Code of Laws

No sales tax is due in South Carolina, however, if a nonresident purchaser cannot receive credit in their resident state for sales tax paid to South Carolina. Vehicle Affidavit for Nonresident, form ST-385 must be completed on each vehicle sold to a nonresident.

Manufactured Housing

The first 35% of the selling price of a new or used manufactured home, after any trade-in (if applicable) is exempt from sales and use tax.

After allowing for the exemption, the maximum tax imposed on the remaining balance and is subject to tax as follows:

  • For a non-energy efficient manufactured home, a maximum tax of $300 plus 2% of the remaining sales price exceeding $6000.
  • Manufactured homes that meet certain energy efficiency levels may have the 2% waived

Local Option Sales and Use Tax

Twenty-seven counties in South Carolina impose an additional 1% local option sales tax. The combined sales tax rate in these counties is 6%.

The counties with the local option sales and use tax and the effective dates of implementation are:

 

Effective Date

Counties

July 1, 1991

Charleston, Colleton, Jasper, Hampton, McCormick and Marion

May 1, 1992

Abbeville, Allendale, Bamberg, Edgefield, Lancaster, Marlboro and Saluda

May 1, 1994

Chester and Florence

May 1, 1995

Pickens

May 1, 1996

Dillon, Lee and Sumter

 

 

May 1, 1997

Berkeley, Chesterfield, Clarendon, Darlington, Kershaw and Williamsburg

May 1, 1998

York

May 1, 1999

Barnwell, Laurens, 

April 30, 2000

Chester

Additional counties may approve the local tax at that time through local elections. If voters approve the tax, the tax will become effective in that county on May 1 following the November election date. Items limited to the $300 maximum sales and use tax are not subject to the local tax.

 Special Local Sales Taxes

 Voters may approve through a county referendum the following taxes:

- 1% local sales and use tax to be used for transportation needs such as roads and bridges. This tax may be imposed in addition to the local option sales and use tax.(Effective: June 13, 1997)

- 1% local sales and use tax to fund specific capital projects such as roads, bridges, public facilities, recreation facilities, and water and sewer projects. This tax may be imposed in addition to the local option sales and use tax but may not be imposed along with any other local sales tax. This referendum may first be held in November 1998. The Department of Revenue will collect this tax. (Effective: July 1, 1997)

The following counties impose the special local 1% sales and use tax for capital projects: Aiken, Allendale, Newberry, Orangeburg and York.

Effective May 1, 2000, Chester County no longer imposes the 1% Capital Projects Tax.  Jasper County discontinued the 1% Capital Projects tax effective December 1, 2002.

-1% local sales and use tax for schools. The state legislature has only approved the school tax to be voted upon in Berkeley, Cherokee, Colleton and Union counties.  Currently, only voters in Cherokee and Chesterfield counties have approved the       tax. The tax is used for school construction and improvements. (See South Carolina Revenue Ruling #96-9 for more information on the Cherokee County local tax.)

-  Chesterfield County imposed a 1% School District Tax effective September 1, 2001.   Jasper County imposed a 1% School District Tax effective December 1, 2002

 Food is exempt from the school district tax but not the capital projects tax.

Exemptions and Exclusions

Generally, all retail sales are subject to the sales and use tax. However, there are a number of exemptions from the tax, most notably, certain items used in farming and manufacturing, medicines sold by prescription and sales to the federal government.

Exclusions

Items excluded from the sales and use tax primarily include sales of goods for resale.

Other excluded items include certain property used in the manufacturing process, materials used to ship manufactured goods for sale and items brought into the state that are for use outside the state.

Sales to individuals 85 years of age and older are exempt from 1% of the state sales tax on the purchase of items for their personal use.

Exemptions

Business Exemptions

The following items are exempt from sales and use tax:

  • Cooperative direct mail promotion advertising materials delivered by means of an interstate carrier, a mailing house or a United States Post Office to residents of this South Carolina from locations both inside and outside the state
  • Machines used in research and development. (Effective for tax years beginning after June 30, 2001)
  • Coal, coke, fuel for manufacturers, transportation companies, electric power companies, processors
  • Long-distance telephone calls, access charges and charges for telegraph messages, transactions at automatic teller machines
  • Fuel for ships on high seas
  • Wrapping paper, containers, etc. used incident to sale and delivery of tangible personal property
  • Motor fuel taxed under motor fuel tax law
  • Machines used to manufacture, process, recycle, compound, mine or quarry tangible personal property for sale, prevent and abate pollution
  • Electricity used to manufacture, process, mine, or quarry tangible personal property for sale or used by cotton gins to manufacture tangible personal property for sale
  • Railcars
  • Certain vessels and barges
  • Laundry supplies and machinery (services are taxed under the law)
  • Vacation timeshare leasing plans
  • Partial exemption for modular homes
  • Movies sold or rented to movie theaters (movie theaters are subject to the admissions tax)
  • Tangible personal property delivered outside of the state by South Carolina retailers
  • Petroleum asphalt products transported and used outside South Carolina
  • Shipping containers used by international shipping lines under contract with the South Carolina State Ports Authority
  • Generally, the sale of all depreciable assets as a result of a sale of the entire business
  • Supplies, equipment, machinery for use in filming/producing motion pictures
  • Material handling systems and equipment used in the operation of a distribution facility or a manufacturing facility
  • Parts and supplies used in the business of repairing or reconditioning aircraft owned by or leased to the federal government or commercial air carriers. (This exemption does not extend to tools and other equipment not attached to or that becomes part of the aircraft)
  • Audio-visual masters, sales price defined, sales tax exemption, waivers

The following when used by a qualified recycling facility:

  1. Recycling property
  2. Electricity, natural gas, fuels, gasses, fluids and lubricants
  3. Ingredients or component parts of manufactured products
  4. Property used for the handling or transfer of post consumer waste or manufactured products, or in or for the manufacturing process; and
  5. Machinery and equipment foundations

Government Exemptions

  • Transactions prohibited from being taxed by federal or state law or the federal or state constitutions
  • Sales to the federal government
  • Materials necessary to assemble missiles used by the U.S. Armed Forces
  • Sales of motor vehicles and motorcycles to nonresident military personnel
  • Sales by the State General Services Division to other state agencies if the tax was paid on the purchase by General Services
  • Parts and supplies used to repair or recondition aircraft owned by or leased to the federal government
  • Sales to government contractors or someone with a written contract with the federal government

Educational or School Related Exemptions

  • Exhibition rentals for museums (for charitable, eleemosynary and government museums ? use tax only)
  • Textbooks, books, magazines, periodicals, newspapers and access to on-line information for use in a course of study or for students' use in the school library, sold to public and private schools and colleges and public libraries
  • These items may be in printed form or alternative forms such as audio tapes, videotapes, microfilm, or CD-ROM information
  • Newspapers
  • Meals sold to students in schools (not for profit)
  • Television, radio and cable TV supplies, equipment, machinery and electricity
  • Zoo plants and animals

Agricultural Exemptions

  • Livestock
  • Feed used to produce or maintain livestock
  • Insecticides, chemicals, fertilizers, soil conditioners, seeds, seedlings, or nursery stock used in the production of farm products
  • Containers and labels used in preparing agricultural products for sale; turpentine gum, gum resin, and gum spirit of turpentine
  • Farm machinery
  • Fuel used to cure agricultural products
  • Farm products sold in their original state of production when sold by producer
  • Electricity and gas used in the production of livestock and milk
  • Electricity to irrigate crops
  • Building materials, supplies, fixtures and equipment used to construct commercial housing of poultry or livestock

General Exemptions

  • Newspapers, newsprint paper and the South Carolina Department of Agriculture's Market Bulletin
  • Toll charges, telegraph messages and access charges (long distance)
  • Vacation timeshares
  • Electricity, natural gas, etc. used for residential purposes
  • Hearing aids
  • Festival concession sales by organizations devoted exclusively to public and charitable purposes
  • Sales by certain nonprofit organizations
  • Plants and animals sold to publicly supported zoos
  • Medicines and prosthetic devices sold by prescription and medicines used in the treatment of cancer and other related diseases
  • War memorials and monuments honoring U.S. armed services and affixed to public property
  • Meals sold by certain nonprofit organizations to the elderly and disabled
  • Food for the homeless or needy sold to certain nonprofit organizations or food that is subsequently sold or donated by the nonprofit organization to another nonprofit organization
  • Certain trash bags required to be used
  • Under a governmental solid waste disposal plan
  • Free samples of prescription medicines distributed by the medicine manufacturer and medicines donated by the manufacturer to a college or university for research or treating indigent patients
  • Goods sold to nonprofit hospitals that primarily treat children at no cost to the patient

Reporting and Paying the Tax

After you receive your retail license or purchaser's certificate of registration, you will receive preprinted forms for reporting and paying the sales and use tax.

Please use these forms?it makes crediting your account much easier.

Returns and payments are due no later than the 20th of the month following the month in which the sales were made.

For example:

You have $2000 worth of sales in the month of January. The sales tax return for the month of January is due February 1 and must be filed no later than February 20.  The return must be postmarked on or before February 20 to be considered timely filed.

The tax is remitted for the month the sale was made regardless of whether the tax was collected from the customer in that month. Depending on the amount of tax paid, the Department of Revenue may authorize certain businesses to pay quarterly, seasonally or annually, rather than monthly.

Reporting and Paying the Tax Electronically

As a South Carolina business owner, you can conveniently file your Sales tax return by using the Business Tax TeleFile System. Business Tax TeleFile is available twenty-four hours a day / seven days a week.  To qualify to file a Business Tax TeleFile sales return, you must have zero gross proceeds of sales, rentals, use tax or withdrawals for the filing period covered.

As a first time user you're required to register on the Business Tax TeleFile System before filing. Registration can be handled directly on the system during the initial telephone call.  The registration and filing process takes less than five minutes. Subsequent filings take less than three minutes. 

The procedure is completely paperless; mailing additional documentation to the Department of Revenue is not required. You need to keep a copy of your report for your files, however.

To use the Business Tax TeleFile System, dial (803) 898-5918 and follow the instructions.  If additional assistance is needed, you can contact the Business Tax TeleFile coordinator in Columbia at (803) 898-5783.

 The Department of Revenue has designed an Electronic Filing Program (EFT/EDI) for the transmission of your payment and filing your tax return information for sales, use, accommodations, local option and/or special local taxes.

 Businesses that have paid $15,000 or more during any one filing period during the past year are required to pay electronically. Taxpayers with less than $15,000 in tax due during a filing period may participate voluntarily with the Electronic Funds Transfer (EFT) Program.  For further information call 1-800-476-0311.

 If you are interested in filing and paying one tax through EFT/EDI, you must file and pay all of these taxes through EFT/EDI.  For example, you cannot file and pay sales tax through this program and pay local option through a conventional process.  Be aware that you must file both the return and the payment electronically; you cannot choose to do one part electronically and the other in a conventional method.

 Electronic payments can be made by using the ACH (Automated Clearing House) debit or credit method.

 Advantages of participating in the EDI/EFT program include:

  • Eliminates paperwork, no more paper returns and checks
  • Reduces return error potential due to no re-keying; no manual intervention
  • Accurate timing of payment from your bank account
  • Comprehensive audit trail for both the return and the payment

 To register, please call 1-800-379-9409 or e-mail BusinessEFT@sctax.org.

 Discount for Timely Payment

If returns are filed and the taxes paid in full by the due date, you will be allowed a discount on taxes due. For taxes less than $100, you may take a 3% discount of the tax. For taxes of $100 or more, your discount is 2% of the tax.

The maximum discount allowed per taxpayer (all locations included) during the state's fiscal year (July 1 - June 30) is $3,000.   The statute was amended (effective July 1, 2002) to increase that discount to a maximum of $3,100 if the retailer files his sales and use tax returns electronically.

Nonresident retailers not required by law to collect South Carolina sales or use tax, but who voluntarily register to do so, are allowed a maximum discount of $10,000 each fiscal year. In calculating the maximum discount, begin with the June return filed in July and end with the May return filed in June.

Cash Deposit or Bond

Transient retailers who have no permanent business location from which retail sales are made may make a sufficient cash deposit or bond with the Department of Revenue to cover at least their annual sales tax liability.

This cash deposit or bond must be made before receiving a retail license.

Sales Tax Holiday

If your business sells clothing, footwear and/or educational supplies, South Carolina's sales tax exemption may impact your business. The three-day sales tax exemption occurs from 12:01a.m. on the first Friday in August and ends at midnight the following Sunday.

The following items are sales tax exempt during this period:

  • Clothing
  • Clothing accessories including, but not limited to:
  • Hats
  • Scarves
  • Hosiery
  • Handbags
  • Footwear
  • School supplies including, but not limited to:
  • Pens
  • Pencils
  • Paper
  • Binders
  • Notebooks
  • Books
  • Book bags
  • Lunch boxes
  • Calculators

Sales of the following items are NOT sales tax exempt during this period:

  • Jewelry
  • Cosmetics
  • Eye wear
  • Wallets
  • Watches
  • Furniture
  • Sales or lease of an item for use in a trade or a business

E-mail Information

Do you want to receive E-mail notices of newsletters or hot topics related to Sales and Use Tax? To use our E-Mail notification service, sign up for our Sales and Use Tax Listserv at www.sctax.org

What Happens If You Don't File a Return?

Penalties and Interest are imposed if you don't file.

If you fail to comply with any of the tax rules administered by the Department of Revenue, your retail license may be revoked and you must close your business until all tax liabilities have been paid.

Selected Forms to Use

There are a number of Sales and Use Tax forms to use based on the types of taxes you collect and where you are located.

ST-3 State Sales and Use Tax Return
ST-8 Single Sale Certificate
ST-8-A Resale Certificate
ST-10 Application for Certificate
ST-382 Religious Organization Affidavit for Musical Instruments/Office Equipment
ST-385 Vehicle Affidavit for Nonresident
ST-387 Application for Sales Tax Exemption Under Code Section 12-36-2120(41), "Exempt Organizations"
ST-388 State Sales, Use and Accommodations Tax Return
ST-389 Schedule for Local Option Sales and Use Tax Return
ST-403 State Sales, Use and Aviation Gasoline Tax Return
ST-407 Food Tax Schedule

For the most up-to-date forms, visit the South Carolina Department of Revenue website at www.sctax.org and go to the Forms and Instructions button.

Withholding

Payroll Taxes

If you'll be employing others to work in your business, you'll need to withhold payroll taxes for both the federal government, FICA and the State of South Carolina.

South Carolina requires withholding from:

  • Wages
  • Prizes
  • Royalties
  • Winnings
  • Nonresident contractors (contracts exceeding $10,000.00)
  • Rental payments made to nonresidents who own five or more residential units or one or more commercial properties in South Carolina
  • Net proceeds going to nonresident sellers of real estate and associated tangible personal property located in South Carolina.

You must apply for a South Carolina Withholding number in order to establish an account in which to deposit your payments.  This can be done online at our website, www.sctax.org  or by completing the Business Tax Application, form SCTC-111.  The number entitles you to be a withholding agent . The withholding number is permanent and will not be issued to any other business or person. Should the form of ownership of the business entity change, such as conversion from a partnership to a corporation, a new withholding number must be obtained. The withholding number will appear on all reports, returns, and correspondence concerning the withholding agent and the account

How to Figure Withholding Payments

A federal form W-4, Withholding Exemption Certificate, should be on file for each employee to determine the amount of income tax to withhold from an employee's wages.  South Carolina has adopted the use of the federal form W-4. We do not have a separate state W-4 form.  It is not required that an employee file a separate form W-4 for state purposes, unless the employee claims a smaller number of exemptions from those claimed for federal purposes. Use the federal form W-4 and indicate on the face of the form that it is "For State Purposes." An employee is not allowed to claim a greater number of exemptions for state purposes than the exemptions claimed for federal purposes. Copies of W-4 forms are available on our website, /, or from the Internal Revenue Service and are to be maintained in the employer's records.

Use the withholding tables in your booklet to determine the amount of tax to withhold depending on the employee's salary, number of exemptions and frequency of payment (daily, weekly, biweekly, semimonthly or monthly).

All South Carolina withholding agents are required to withhold tax from employees' wages at the same time employees are paid (based on the date of the paycheck). The state withholding tax dollar limit that determines when a deposit or payment is to be made (except for nonresident withholding agents) is determined by your federal deposit requirement (i.e., monthly, weekly or daily).

Making Withholding Payments

Paper Reporting

Withholding agents will receive a withholding package annually from the Department of Revenue with forms for filing and remitting the taxes. Each return in the package will be preprinted with the name and withholding number assigned to the withholding agent.

Also included in this package are preprinted coupons for you to use to deposit withholding taxes at your bank, if applicable. Use of these preprinted forms will help assure your return and payments are processed timely and efficiently.  All preprinted Withholding Tax Payment Coupons (form WH-1601) must be deposited at one's bank at the same time that federal withholding tax and FICA are deposited.

South Carolina resident withholding agents must deposit state withheld taxes with their local banks.

All payments made without a preprinted payment form (WH-1601) must be mailed to the address on the form.

 Electronic Payment Over the Internet

You may also make withholding payments online by using our ePAY system from our website.  There is no cost to you and no registration is required.  Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft).  Go to our website at www.sctax.org to use the program.

 Electronic Funds Transfer

Withholding agents who withhold $15,000 or more state tax per quarter are required to pay taxes through electronic funds transfer. The Department of Revenue notifies withholding agents of their requirement to make electronic funds transfers. Other withholding agents may participate voluntarily in the Electronic Funds Transfer (EFT) program.  For additional information, contact Electronic Services at the Department of Revenue 1-800-379-9409 (statewide) or (803) 898-5740 (in Columbia).

Payment Due Dates

Resident Withholding Agents:

Payment Due Dates are based on FEDERAL guidelines.

 

 

If your FEDERAL tax liability is:

Both your Federal and SC withholding tax payments are due:

Quarterly

Less than $2,500 for the quarter

Within 30 days after the end of the quarter

Monthly

Less than $50,000 during the 12 month lookback period

By the 15th of the following month

Semi-weekly

More than $50,000 during the 12 month lookback period

Paydays on Wednesday, Thursday, Friday?following Wednesday

Paydays on Saturday, Sunday, Monday, Tuesday?following Friday

1 Banking Day

$100,000 or more accumulations

Within 1 banking day

Nonresident Withholding Agents:

Payment due dates are based on State Tax liability.

 

 

If your STATE tax liability is:

SC withholding payment is due:

Quarterly

Less than $500 for the quarter

Within 30 days after the end of the quarter

Monthly

More than $500 for the quarter

By the 15th of the following month

Filing Withholding Returns

Business Tax Telefile

A tax return must be filed even if no South Carolina withholding taxes were withheld during the filing period covered if the account was open.  As a South Carolina business owner, you can conveniently file your withholding tax return by using the Business Tax TeleFile System, twenty-four hours a day / seven days a week. To qualify to file a withholding return, you must have a zero payment amount due with the return for the filing period covered.

As a first-time user you are required to register on the Business Tax TeleFile System before filing.  Registration can be handled directly on the system during your initial telephone call. The registration and filing process takes less than ten minutes. Subsequent filings take less than eight minutes. The procedure is completely paperless ? mailing additional documentation to the South Carolina Department of Revenue is not required.

If you file your WH-1606 (Fourth Quarter/Annual Reconciliation) using the TeleFile system, you should submit your W-2's and/or 1099's with form WH-1612 (Transmitter Summary Report Wage and Tax Information).  If using the TeleFile system, do not submit W-2's and/or 1099's with the paper form WH-1606.  This will result in a duplicate filing and will potentially cause problems in your withholding account.

To use the Business Tax TeleFile System, dial (803) 898-5918 and follow the instructions. If additional assistance is needed, you can contact the Business Tax TeleFile coordinator in Columbia at (803) 898-5111.

Reconciliation Returns

There are two (2) types of reconciliation returns:

  1. Quarterly (WH-1605)
  2. Fourth quarter/annual (WH-1606)

All withholding agents are required to file a quarterly reconciliation of tax withheld during the quarter (form WH-1605).  A fourth quarter/annual reconciliation return (form WH-1606) must be used to reconcile the withholding account for the fourth quarter and year and transmit state copies of W-2 forms. Quarterly payers will remit fourth quarter tax due with form WH-1606.

Due dates for the first three quarterly returns are the same as federal:

First Quarter

April 30 

Second Quarter

July 31 

Third Quarter

October 31 

Mail your returns to:

South Carolina Department of Revenue
Withholding
P O Box 125
Columbia SC 29214-0004

A federal Withholding Tax Statement, form W-2 must be furnished to each employee before January 31 following the close of the calendar year or on the last day of employment.

The form W-2 must include the following information:

  • Name and address of the withholding agent
  • State and federal identification number of the withholding agent
  • Name and address of the employee
  • Social Security number of the employee
  • Total amount of wages or payments
  • Total amount of tax withheld

Copy one of the W-2 form must accompany WH-1606 form, the Fourth Quarter/Annual Reconciliation of Income Tax Withheld return, and sent to the South Carolina Department of Revenue by February 28 (or February 29 in leap years).

 W-2 Notes

 W-2 Wage and Tax Statement forms have multiple copies.  They are:

  • Copy A for Social Security Administration. Send the entire page with form W-3 to the Social Security Administration (SSA); photocopies are not acceptable.1
  • Copy one for the state, city or local tax department
  • Copy B to be filed with the employee's federal tax return. This information is being furnished to the Internal Revenue Service.
  • Copy C is for the employee's records
  • Copy D is for the employer
  • Copy two is for the employee's state, city or local income tax return.

 Specific information needed to complete the W-2 form is given in a separate Internal Revenue Service booklet entitled "2001 Instructions for Forms W-2 and W-3."Because the Social Security Administration processes paper forms by machine, you cannot file with the SSA forms W-2 and W-3 that print from the IRS website (www.irs.org).

 Due Dates for W-2's

 Furnish copies B, C and 2 to the employee generally by January 31. (File copy A with the SSA generally by February 28, 2003.  Send all copies A with Transmittal of Wage and Tax Statements, form W-3. If you file electronically (not by magnetic media), the due date is March 31, 2003.  These dates change each year so be sure you read the instructions carefully!

Nonresident Withholding Agents

Nonresident withholding agents may mail their payments and coupons to:

 :SC Department of Revenue
  Withholding
  301 Gervais Street
  Columbia, SC 29214-0004

The postmark date will determine timely filing.  You may also make withholding payments online by using our ePAY system from our website.  There is no cost to you and no registration is required.  Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft).

A nonresident withholding agent whose accumulated South Carolina withheld tax is less than $500 during a calendar quarter must remit tax withheld to the Department of Revenue by the last day of the month following the quarter in which the tax was withheld.

For example: If the accumulated amount withheld is $500 or more by the end of a month, the tax withheld must be remitted by the 15th day of the following month.

For example: If the accumulated amount withheld is less than $500 in any month, the amount can be rolled forward to the next month within the same quarter.

Nonresident withholding agents withholding $15,000 or more per quarter are required to pay taxes through electronic funds transfer (see Electronic Funds Transfer EFT above).

Selected Forms to Use

WH 1601 Withholding Tax Payment Coupon
WH 1603 Withholding Tables
WH 1603F Computer Formula
WH 1605 Quarterly Withholding Tax Return (Quarters 1, 2 and 3)
WH 1605A Amended Quarterly Tax Return
WH 1606 Fourth Quarter/Annual Reconciliation of Income Tax Withheld
WH 1606A Amended Fourth Quarter/Annual Reconciliation of Income
Tax Withheld
WH 1612 Transmitter Report and Summary of Magnetic Media Form
W-2Wage and Tax Statement (federal form)
Form W-4 Withholding Exemption Certificate (federal form)
Form 105 Information Guide - South Carolina Withholding Tax
SCTC-111 Business Tax Application

For the most up-to-date forms, visit the South Carolina Department of Revenue website at www.sctax.org and go to the Forms and Instructions button.

Other South Carolina Taxes You May Need to File

Unemployment Insurance Contributions

Employers of one or more workers must pay a tax on wages paid to employees for purposes of providing unemployment compensation.

This tax is administered and collected by the South Carolina Employment Security Commission.

South Carolina Employment Security Commission
1550 Gadsden Street
Post Office Box 995
Attn: UI Technical Services
Columbia, SC 29202
Telephone: (803)737-3075

Workers' Compensation

Employers with four or more employees must purchase insurance or qualify as a self-insurer by meeting certain requirements in accordance with the rules and regulations of the South Carolina Workers' Compensation Commission. Workers' Compensation provides benefits to employees who have sustained a job-related injury or illness. The Workers' Compensation Commission collects premiums.

South Carolina Workers' Compensation Commission
1612 Marion Street
Post Office Box 1715
Columbia SC 29202
Telephone: (803) 737-5700

What Happens If You Don't File a Return?

Penalties and interest are added if you don't file a return.

Property Tax

Property tax is generally administered and collected by local governments. Real property is subject to property taxes. Personal property is used in business and certain personal property is used for personal purposes such as motor vehicles, boats and airplanes are subject to property taxes.

Property taxes are generally assessed and collected by local governments, but the Department of Revenue assesses and collects some property taxes and oversees all property tax assessments to ensure equitable and uniform assessment throughout the state. Businesses must report business personal property taxes to the Department of Revenue. There is no state or local tax on intangible personal property or inventories.

How the Tax is Figured

Each class of property is assessed at a ratio unique to that type of property. The assessment ratio is applied to the market value of the property to determine the assessed value of the property. Each county, municipality or other taxing entity then applies its millage rate to the assessed value to determine the tax due. A mill is a unit of monetary value, equal to one-tenth of a cent, or one-thousandth of a dollar (.001).

For example, if the millage rate is 200 mills and the assessed value of the property is $1,000, the tax on that property is $200.

Real and personal property of manufacturers, utilities, railroads, carlines and airlines and business personal property of merchants is assessed by the Department of Revenue. The county assessor assesses all other real property.

The county auditor assesses all other personal property.

A state property tax is levied on private carlines and airlines based on the average statewide millage rate.

Assessment Ratios

The following assessment ratios are applied to the value of the property to determine the assessed value for purposes of taxation:

  • Manufacturing Property - 10.5% of fair market value
  • Utility Property - 10.5% of fair market value
  • Railroads, Private Carlines, Airlines and Pipelines - 9.5% of fair market value
  • Primary Residences - 4.0% of fair market value
  • Agricultural Property (privately owned) 4.0% of use value
  • Agricultural Property (corporate owned) 6.0% of use value
  • Other real estate - 6.0% of fair market value
  • Personal property - 10.5% of income tax depreciated value

Business Personal Property

All businesses assessed by the Department of Revenue are required to file a business personal property return with the Department of Revenue annually. All furniture, fixtures and equipment are to be reported at acquisition cost with a deduction allowed for depreciation.

The return is due on the last day of the fourth month following the close of the tax year. No extension of time for filing will be granted.

Exemptions

South Carolina law provides for a number of property tax exemptions. To obtain an exemption, application must be made to the Department of Revenue on Application for Exemption, form PT-401.

The properties listed below are exempt from property tax:

Exemptions as they relate to institutions of learning

All property of:

· Schools
· Colleges and other institutions of learningexcept where the profits of the institutions are applied to private use

The property of all charitable institutions

In the nature of hospitals, institutions caring for:

  • The infirmed
  • The disabled
  • The aged
  • Children
  • Indigent persons except where the profits of the institutions are applied to private use

The property of all:

  • Libraries
  • Churches
  • Parsonages
  • Burial grounds
    • all property which extends beyond the premises actually occupied by the church if no profit or benefit from any operation flows through to any private stockholder or individual or no income producing ventures are located on the property

Exemptions as they relate to certain individuals

  • The dwelling house and up to one acre of surrounding land is exempt for:
  • Veteran who is permanently and totally disabled from a service-connected disability and the surviving spouse
  • The surviving spouse of military personnel or a law enforcement officer killed in the line of duty

Two motor vehicles for which special license tags have been issued are exempt if owned by a prisoner of war:

  • World War I
  • World War II
  • Korean Conflict
  • Vietnam Conflict
  • A permanent and totally disabled veteran
  • Recipients of the Medal of Honor
  • Persons required to use wheelchairs

Exemptions as they relate to organizations

Nonprofit organizations involved in the following:

  • Water supply
  • Sewage disposal
  • A combination of both water supply and sewage disposal
  • American Legion
  • Veterans of Foreign Wars
  • Spanish-American War Veterans
  • Disabled American Veterans
  • Fleet Reserve Association
  • Other similar veterans' organizations
  • YMCA and YWCA
  • Salvation Army
  • Boy Scouts
  • Girl Scouts
  • Palmetto Junior Homemaker Association
  • New Homemakers of South Carolina
  • South Carolina Association of Future Farmers of America
  • New Farmers of South Carolina
  • Religious, charitable, eleemosynary, educational or literary society, corporation or association, when the property is held primarily for holding meetings and conducting business
  • Property owned by religious, charitable, eleemosynary, educational or literary society, corporation or association, if property is acquired to construct or renovate a residential structure for sale to economically disadvantaged persons
    • The exemption will not exceed fifty (50) acres per county and the sale cannot be for profit

Real property leased on a nonprofit basis to a(n):

  • State agency
  • County
  • Municipality or other political subdivision used for public purposes.
    • the exemption does not apply to property used for office space or warehousing
  • Volunteer fire departments and rescue squads when property is used exclusively for that purpose
  • Nonprofit museums used exclusively for such purpose
  • Property of nonprofit or eleemosynary community theater companies, symphony orchestras, county and community arts councils and other similar companies, which is used exclusively for promotion of the "arts"
  • Charitable trusts and foundations if property is used for charitable

The following exemptions as they relate to personal effects and the home

  • Household goods and furniture used in the owner's home
  • Household goods and furniture used in a timeshare residential units
  • Clothing
  • A homestead exemption of $50,000 is available to residents who are 65 years of age, who are totally disabled or who are totally blind

The following exemptions pertain to the farm

  • All agricultural products owned by the producer
  • Livestock and poultry
  • Farm machinery and equipment
  • Greenhouses

The following exemptions pertain to business concerns

  • New manufacturing facilities and additions costing at least $50,000 to existing manufacturing facilities are exempt from the ordinary county taxes for a period of five years
  • Corporate headquarters, corporate office facilities and distribution facilities are exempt from ordinary county taxes for five years if the cost of new construction or additions is $50,000 or more and 75 or more full-time jobs are created
  • Manufacturers' inventories
  • Merchants' inventories
  • Personal property of an air carrier operating a hub in South Carolina is exempt for 10 years
  • Water, air or noise pollution equipment and facilities

Other property tax exemptions

  • Real property leased on a nonprofit basis to a state agency, county, municipality or other political subdivision used for a public purpose other than office space or warehousing
  • Property leased to and operated by the S.C. Public Service Authority for generating or transmitting electricity
  • Personal property used for public display loaned or leased on a nonprofit basis  to a(n):
    • State agency
    • County
    • Municipality
    • Other political subdivision
    • Organization exempt from federal income tax under Internal Revenue Code (IRC) Section 501-514
  • Carnival equipment owned, leased or used by a foreign corporation or nonresident for a period of not more than six months if property tax has been paid in another state
  • Other property owned by churches if no income producing ventures are located on the property and no profit or benefit is derived by any individual
  • Nonprofit community-owned recreation facilities open to the general public
  • Personal property in transit with 'no situs' status
  • Intangible personal property

Fee-in-Lieu of Property Taxes

Industries investing at least $5 million ($1 million in some counties) in South Carolina may negotiate for a fee-in-lieu of taxes, resulting in a savings of about 40% of property taxes otherwise due.

The project may be financed with industrial revenue bonds and structured as a purchase-leaseback. The county may hold title to the fee assets. Under certain fee agreements, the title remains with the company.

A company must make the minimum investment over a certain period to qualify.

A county may grant an additional two years to complete a project. The minimum investment must be met within a certain period of time.

In addition, the fee agreements may negotiate a fixed millage rate for the term of the fee or set a millage rate that varies each five years in accordance with the average millage for the site.

Tax Returns

Tax returns reporting business personal property, manufacturers' property and utility companies' property must be submitted by businesses to the Department of Revenue by the last day of the fourth month after the close of the taxpayer's accounting period. No extension of time for filing can be granted.

Selected Forms to Use

PT-100 Business Personal Property Tax Return
PT-139 Water and Sewer Companies Property Tax Return
PT-300 Manufacturer's Property Tax Return
PT-401 Property Tax Exemption Application
PT-417 Private Carline Tax Return
PT-418 Airline Property Tax Return
PT-420 Utility and Railroad Company Property

What Happens If You Don't File a Return?

Penalties are imposed if you do not file including the issuance of an estimated property tax assessment.

Alcoholic Beverages

What Are the Basic Requirements for a Beer and Wine Permit or a Liquor Permit?

An applicant must:

  • Be at least twenty-one (21) years of age,
  • Be a legal resident of the United States,
  • Be a legal resident of South Carolina for at least thirty (30) days prior to making application to the South Carolina Department of Revenue,
  • Be of good moral character. This includes the applicant, principals, officers, agents, etc.
  • Not have any outstanding liabilities with the Internal Revenue Service and/or the South CarolinaDepartment of Revenue.

-Depending on the type of license, the location must meet certain requirements.

Alcoholic Liquors Tax

The alcoholic liquors tax is imposed on all manufacturers, wholesalers and retailers of alcoholic liquors. Anyone selling alcoholic liquors must apply to the Department of Revenue for a license.

A $100 filing fee must be submitted with the application. The license fees are: 

Registered Producer's Certificate of Registration

$200 every two years

Producer Representative's Certificate of Registration

$50 every two years

24-hour Mini-Bottle License for Nonprofit Functions

$35 per day

24-hour Nonprofit Organization License to Sell from Large Bottles

$35 per day

Manufacturers, wholesalers and retailers must pay tax on alcoholic liquors as follows:

Excise Tax:

Per 8 ounces of alcohol

$ .17

Mini-bottle

$ .25

Per liter

$ .71825

Standard case (wholesalers)

$1.81

Standard case (payable by retailers to wholesalers)

$2.99

Standard case (additional tax paid by wholesalers)

$ .56

Surtax

9%

Beer and Wine Tax

All wholesale distributors, retailers, breweries and wineries doing business within South Carolina are required to be licensed by the Department of Revenue.

New businesses must pay a $200 filing fee with the license application in addition to the appropriate license fees:

Wholesalers

$2,000 every two years

Retailers

$400 every two years

Certificate of Registration for Breweries and Wineries

$200 every two years

Winery/Brewery Application

$200 every two years

If a winery uses its own grapes and located in South Carolina

$10 every two years

Special Functions/Fair Permits

$10 daily up to 15 days

7-day beer and wine retail permits

$2,000 every two years

7-day beer and wine retail permits

for businesses which close on Saturday for religious reasons

$500 every two years

Brew pubs

$2,000 every two years

Temporary beer and wine Permits

$25 for up to 120 days

Wholesale distributors are required to pay beer and wine tax, the tax rates are:

Beer per Ounce $.006

Wine U.S. Sized Containers:

Per 8 oz. up to 1 gallon

$.06

Per gallon

$.90

Additional tax per 8 oz

$.012

Additional tax per gallon

$.18

Wine Metric Sized Containers:

Per liter

$.2535

Additional tax per liter

$.0507

Each wholesaler is required to report all beer and wine sold or disposed of within this state and pay the tax due no later than the 20th of the month following the month the sales occurred.

What Type of Establishments Can Be Licensed for a Mini-Bottle License?

Restaurants must be primarily and substantially engaged in the preparation and serving of meals, have seating for not less than forty (40) people simultaneously at tables, which must be usable and suitable for the consumption of meals year round and have a Grade A health permit from the South Carolina Department of Health and Environmental Control (DHEC).

Hotels and motels must rent lodging to the public of at least twenty (20) rooms on a regular basis

Private clubs must be established for social, benevolent, patriotic recreational, or fraternal purposes, have a limited membership, be governed by bylaws, not open to the general public and must have a nonprofit charter in good standing with the South Carolina Secretary of State.

Retail liquor stores must meet structural requirements of South Carolina Code Section 61-6-1510 and may sell mini-bottles a wholesale to restaurants and bars only after they have received federal approval.

Miscellaneous Taxes

Admissions Tax

Admissions tax must be collected by all places of amusement when an admission price has been charged. The tax is 5% of the paid admissions. If you operate a place of amusement, you must obtain an admissions tax license. There is no charge for the license. You may be required to obtain a retail license.

Examples of "places of amusement" are: nightclubs, college and professional sporting events, amusement parks, golf courses, miniature golf or "putt-putt" courses, tennis courts, bowling alleys, water slides, movie theaters, musical concerts, health clubs, spas, gyms, swimming pools, skating rinks, baseball batting cages and craft shows.

Exemptions from the admissions tax are:

  1. Stage plays or pageants in which only local or nonprofessional talent or players perform
  2. Certain Junior American Legion athletic events
  3. High school or grammar school athletic events
  4. Admissions to the State Fair or county or community fairs
  5. Admissions charged by eleemosynary and nonprofit organizations organized exclusively for religious, charitable, scientific or educational purposes or the presentation of performing artists by an accredited college or university (except athletic events of a college or university, and admissions to rides, places of amusement, shows, exhibits and other facilities at a circus, carnival or community fair, except when the proceeds are donated to a hospital)
  6. Nonprofit public swimming pools
  7. Hunting or shooting preserves
  8. Privately owned fish ponds or lakes
  9. Circuses operated by nonprofit organizations organized exclusively for religious, charitable, scientific or educational purposes when the proceeds will be used for those same purposes
  10. Properties or attractions on the National Register of Historical Places
  11. Classical musical performances of a nonprofit organization operated exclusively to promote classical music
  12. Admissions to events sponsored by nonprofit organizations organized exclusively for religious, charitable, scientific, civic, fraternal or educational purposes, when the entire net proceeds are donated to an organization operated exclusively for charitable purposes
  13. Admissions charged by nonprofit community theater companies, community symphony orchestras, county and community arts councils and other commissions and companies promoting the arts
  14. Boats that charge a fee for pleasure fishing, excursion, sightseeing and private charter
  15. Admissions to physical fitness centers that provide only aerobics, calisthenics, weight-lifting equipment, exercise equipment, running tracks, racquetball, handball, squash or swimming pools for aerobics or lap swimming

Reporting and Paying the Tax

Filers of Admission Tax must complete and submit to the Department of Revenue an Admissions/Theater Tax Return, form L-511 and are required to maintain a copy of this return for audit purposes.

This return is due on the 1st day of the month following period covered by the return, and becomes delinquent on the 21st day.

Timely filers are entitled to a discount computed by dividing the dollar amount of the gross receipts (for that period) by 105% for the total dollar amount that is due.

What Happens If You Don't File?

Failure to file this return will result in a penalty of 5% for the first month plus 5% for each additional month not to exceed an aggregate of 25%. Failure to pay will result in penalties of ½ of 1% per month not to exceed 25%.

Interest on all overdue accounts will be assessed at the rate provided under Sections 6621 and 6622 of the Internal Revenue Code. Rates will change quarterly depending on the prime rate. In addition interest will be compounded daily.

Bingo Tax

Nonprofit groups organized for fraternal, religious or charitable purposes which have been certified as tax exempt by the Internal Revenue Service and domiciled in South Carolina for at least three years may conduct bingo in South Carolina.

Authorized nonprofit organizations may apply for a bingo license on form L-2058. There are five categories of bingo licenses, which vary in prize limits, number of allowable sessions and costs.

The Department of Revenue authorizes the purchase of bingo cards/paper from licensed distributors. The bingo tax is 16.5 cents per $1.00 face value of the cards.

If the tax is not paid, the organization will not be able to obtain bingo cards.

Type of License

License Cost

Class AA

$4,000

Class B

$1,000

Class C

No Cost

Class D

$100 (10 days or less)

Class D

$200 (more than 10 days)

Class E

$500

Class F

$100

Class AA and B organizations must designate a promoter, who must be licensed. If a Class C organization hires a promoter, that promoter must also be licensed. The promoter must complete an application, form L-2057 to obtain a license.

The promoter's license is $1,000 annually. Each organization licensed to operate bingo must file quarterly financial reports and a list of bingo winners of $1,000 or more.

A bingo operation may take in only two times more in gross proceeds than the prize for that session. Amounts in excess of this limit are subject to a tax equal to the amount of the excess in addition to all other bingo license fees and taxes.

Deed Recording Fee

The County Clerk of Court or Register of Deeds imposes a recording fee when any lands, tenements or other realty is transferred to another person. The fee is $1.85 for each $500 of the realty's value. The value is the consideration paid or to be paid in money or money's worth for the realty.

The following transfers of realty are exempt from the deed-recording fee:

  • Realty valued at $100 or less
  • Transfers to the federal, state or local government, including school districts;
  • Transfers exempted under federal or South Carolina laws and Constitutions;
  • In which no gain or loss is recognized by Section 1041 of the Internal Revenue Code;
  • Transfers that are made to partition realty;
  • Individual grave space at a cemetery;
  • Contract for the sale of timber to be cut;
  • Transfers to a corporation, partnership or
  • a trust in order to become or as a stockholder, partner or trust beneficiary of the entity provided no consideration is paid for the transfer other than stock in the corporation, interest in the partnership, beneficiary interest in the trust or the increase in value in stock or interest held by the grantor;
  • Transfers from a family partnership to a partner or from a family trust to a beneficiary so long as no consideration is paid;
  • Statutory merger or consolidation from a constituent corporation to the continuing or new corporation;
  • Merger or consolidation from a constituent corporation to the continuing or new partnership; and
  • A corrective deed or quitclaim deed used to confirm title already vested in the grantee provided that no consideration is paid;
  • Transferring realty subject to a mortgage to the mortgagee whether by a deed in lieu of foreclosure executed by the mortgagee or deed pursuant to foreclosure proceedings;
  • Transferring realty from an agent to the agent's principal in which the realty was purchased with funds of the principal, provided that a notarized document that is also filed with the deed that establishes that fact that the agent and principal relationship existed at the time of the original purchase as well as for the purpose of purchasing the realty.

For additional information about deed recording, you can review the deed recording manual by visiting the Department of Revenue's website at / (go to "Tax Information" and then click on "Miscellaneous Taxes.")

 

Business License Taxes

Tobacco Products

The business license tax applies to all tobacco products sold in South Carolina. All persons selling, purchasing, distributing or importing tobacco products in South Carolina are required to pay the business license tax. The tax is paid only once. If tobacco products are purchased from a licensed distributor, then the retailer would owe no tax.

A business license is required for all persons selling, purchasing or distributing tobacco products in South Carolina at wholesale or through vending machines. A separate license is required for each business location. Apply for the license on form L-915. Manufacturers' sales representatives who conduct business in South Carolina must obtain a license by making application on form L-917.

Persons who sell tobacco products through vending machines need only one license, but they must maintain a current listing of locations of each vending machine.

Persons who own and stock vending machines on their own premises are not required to obtain a license.

The tax rates on tobacco products are:

Cigarettes

3.5 mills/cigarette

 

(7 cents/pack of 20)

All other tobacco products

5% of manufacturing prices

Every person first receiving untaxed cigarettes for sale or distribution in South Carolina must file a monthly report and remit the cigarette tax.

Cigarette packages do not require tax stamps.

The tax is paid with a monthly report, Monthly Return of Tobacco Distributors, form L-922, due on the 20th day of the month following the month in which sales were made. The Department of Revenue may require tobacco tax be reported and paid during regular periods other than monthly.

-A discount for timely filing cigarette returns and paying the tax due is 3.5% of the tax due.

Electric Power Tax

Every person who sells electric power for resale and every public utility and cooperative that sells electric power to the consumer must pay an electric power tax. The tax does not apply to electric power purchased from vendors previously taxed under the statute.

The tax is 5/10 of one mill (.0005) upon each kilowatt-hour of electric power sold.

Estate Tax

The estate tax is on the privilege of transferring property at death . The State Estate Tax is the amount of credit for state death taxes allowed on the Federal Estate Tax return. The State Estate Tax return is due nine months after the date

Forest Renewal Tax

The forest renewal tax is assessed on all primary forest products harvested from South Carolina and is paid by the processor of primary forest products. The tax is paid quarterly on the 25th of the month following the end of the quarter. Processors are required to maintain product records for three fiscal years.

The tax rates are:

Softwood products measured in board ft.

50¢ per 1,000-board ft.

Softwood products measured in cords

25¢ cents per cord

Hardwood products measured in board ft.

25¢ per 1,000-board ft.

Hardwood products measured in cords

7¢ cents per cord

Dry Cleaning Facility Registration Fees and Surcharges

Owners of dry-cleaning facilities must pay registration fees for each of their "wet-side" locations.

The initial and annual registration fees are based upon the number of employees at the facility the previous year and are computed as follows:

Number of Employees

Registration Fee

1-4

$750

5-10

$1,500

11 or more

$2,250

Fees may be paid on an annual or quarterly basis.  Use the Dry Cleaning Facility Registration Application, form L-2093 to register

 An environmental surcharge is due on the privilege of producing in South Carolina or importing into the state perchloroethylene (tetrachloroethylene) and Stoddard (petroleum) solvent.   A person importing or producing one of these solvents must register with the Department of Revenue for purposes of remitting the surcharge and pay a $30 registration fee.

The surcharge imposed is $10 a gallon on perchloroethylene and $2 a gallon on Stoddard solvent.  The surcharge is due on the first day of the month after the month of production, importation or removal from a storage facility. It must be paid on or before the 20th of the month on Solvent Surcharge Return, form ST-397.

Low-level Radioactive Waste Tax

A tax is levied on the disposal of low-level radioactive waste at the facility in Barnwell County for long-term disposal. The tax is $235 per cubic foot of low-level radioactive waste disposed of into the State of South Carolina.

The owner or operator of the low-level radioactive waste disposal facility must report the quantity and types of waste disposed during the quarter and pay the tax by the 30th day following the end of the quarter.

Solid Waste Excise Tax

Retailers of tires and batteries and wholesalers of appliances and motor oil are required to report and pay the solid waste excise tax on the sale of these items.

The tax is $2 per tire, battery and appliance sold and eight cents for each gallon of motor oil sold.

-The tax is reported on form ST-390. Register for the tax by checking block 8-A on form SCTC-111.

Highway Use Tax

 South Carolina is a member of the International Fuel Tax Agreement (IFTA).

 The IFTA is a base-state agreement administered by the South Carolina Department of Public Safety and designed to simplify the administration of the state fuel use tax for interstate motor carriers.

 Motor carriers who travel exclusively within South Carolina (i.e., 100% of miles in South Carolina) no longer have to file highway use returns and do not have to become licensed under IFTA. If an occasional trip out of South Carolina is required, the South Carolina intrastate carrier has the option of purchasing trip permits with each state or becoming licensed under IFTA.

 All motor carriers based in South Carolina and operating qualified motor vehicles in two or more IFTA states are required to be licensed under IFTA.

 If you are an IFTA carrier based in another member jurisdiction outside South Carolina, your South Carolina highway use tax account is closed.

 You will report South Carolina fuel use information to your base jurisdiction IFTA. If you are not an IFTA carrier and are based in another jurisdiction, you will be required to continue filing highway use tax returns with South Carolina or obtain trip permits

 For more information concerning IFTA registration, call (803) 737-6620 or for more information about IFTA tax reports, please call (803) 737-6620.

Motor Fuel Tax

 A motor fuel tax of 16 cents per gallon is imposed upon all gasoline used or consumed in this state and upon all diesel fuel used or consumed in this state in producing or generating power for propelling motor vehicles.

All suppliers and importers doing business in South Carolina are responsible for collecting the tax and reporting and remitting it to the Department of Revenue.

The reports and tax must be filed by the 22nd day of each month following the month in which the delivery is made.

Terminal suppliers, permissive suppliers, terminal operators, exporters, transporters, importers and tank-wagon operators are required to obtain a license before operating and pay applicable fees. Application should be made on form L-2045.

Fuel vendors or purchasers of motor fuel may obtain a refund of the motor fuel tax paid for the following uses:

  • Motor fuel sold for use in commercial shrimp boats
  • Motor fuel sold for use in state school buses or other state vehicles used in the South Carolina school bus transportation program
  • Motor fuel sold to the federal government
  • Motor fuel used in the manufacture of fuel oil
  • Motor fuel used in trucking equipment for non-highway purposes (i.e., power take off units)
  • Taxable diesel that has been contaminated by dye so as to be unsalable or unusable as highway fuel
  • Diesel fuel used as heating oil or in trains

Use the Application for Distributor's License of Motor Fuels, form L-2045 to register. This license takes thirty (30) days to process.

Corporate Income Taxes

The Initial Annual Report of Corporations, form CL-1, must be submitted by both domestic and foreign corporations. The report should be submitted when filing:

  • The Articles of Incorporation
  • Receiving an authority to transact business in South Carolina
  • Or on or before sixty (60) days after commencing business in South Carolina

The minimum license fee of $25 must be paid at the time the report is filed.

 Tax Rate

The tax rate on South Carolina net corporate income is 5%. The starting point in determining South Carolina taxable income is the corporation's federal taxable income.

The license fee rate is .001% of the corporation's capitalization plus $15. The corporation's capital stock and paid in capital accounts are subject to this tax.

The minimum license fee is $25 and is paid a year in advance with the year's corporate tax report.

Most Common Modifications to Federal Taxable Income

1.  Interest on state or local obligations other than South Carolina are additions to income

 2.  State and local income taxes or state and local franchise taxes measured by net income, any income taxes, or any taxes measured by or with respect to net income must be added back to federal taxable income

3.  Add back federal net operating loss (NOL). South Carolina allows a South Carolina NOL carryover but no carry-back

4.  If a corporation is claiming a reduction in salaries and wages due to the federal jobs credit, subtract this amount for South Carolina purposes

Tax Credits

  • Drip/Trickle Credit. A total credit of 25% of expenditures up to $2,500 for each measure is allowed for the purchase and installation of conservation tillage equipment, drip/trickle irrigation system and dual-purpose combination truck and crane equipment.  The unused credit may be carried over for five years. 
  • Minority Business Credit. A contractor who awards a subcontract to a certified South Carolina-based minority business is eligible for a credit of 4% of payments made to the minority subcontractor up to $25,000 annually or the amount of the tax liability, whichever is less.  A contractor is eligible for the income tax credit for six (6) taxable years beginning with the taxable year in which the credit is first claimed.

  • Water Resources Credit. A tax credit is allowed for 25% of allowable expenditures up to $2,500 for the construction and installation or restoration of ponds, lakes and other water impoundments and water control structures designed for the purposes of water storage for irrigation water supply, sediment control, erosion control or aqua-culture and wildlife management. A five-year carryover is allowed.

  • New Jobs Credit. An income tax credit is allowed for each new job created in the state's 46 counties so long as at least a monthly average of at least 10 new jobs are created in a taxable year.

Corporations, sole proprietorships, partnerships, S corporations and limited liability companies are eligible for the credit.

To qualify, the employer must operate qualifying manufacturing, tourism, processing, warehousing, distribution, research and development, corporate offices or certain service-related facilities.

Retail facilities and service-related industries located in distressed or least developed counties may qualify for the credit.

Qualifying service-related facilities must create a certain number of jobs at a certain pay wage or must be a qualified health-related facility.

    • Tourism facilities that consist of hotels and motels must create 20 jobs in order to qualify for the credit.

    • After June 30, 2001, technology intensive facilities may also qualify for the credit.

The credit is:

·        $8,000 for each new job created in distressed counties
·        $4,500 for each new job created in least developed counties
·        $3,500 for jobs created in under developed counties
·        $2,500 for moderately developed counties
·        $1,500 for developed counties

·        An additional credit of $1,000 is available for each new job created in a multi-county industrial park.

·        An additional credit of $1,000 is available for each new full time job created on a property eligible for the Brownfields Voluntary Cleanup Program

The credit is available for years two through six after the job is created.

The credit may not exceed 50% of the tax liability of the taxpayer but may be carried over for fifteen (15) years.

  •  Palmetto Seed Capital Credit. An income tax credit is allowed for qualified investments in the Palmetto Seed Capital Corporation used to encourage business growth. The credit may not exceed tax liability but may be carried over for 10 years.
  • Corporate Headquarters Credit. A credit of 20% of real property costs incurred in establishing a corporate headquarters is allowed if the total costs are at least $50,000 and at least 40 new headquarter type jobs are created. An additional credit of 20% of personal property costs is available if the company creates 75 headquarters type jobs and meets certain per capita income requirements.
  • Employer Child Care Credit. Taxpayers who establish childcare programs for their employees (who are South Carolina residents) may claim a credit of 50% of costs not to exceed $100,000.

 If the taxpayer pays another childcare facility to provide childcare on behalf of employees (who are South Carolina residents), the credit is 50% of payments made, not to exceed $3,000 per employee. The credit may not exceed 50% of tax liability but may be carried forward for ten (10) years.

  • Infrastructure Credit. Corporations may claim a credit of 50% of expenses for building or improving an infrastructure project such as water and sewer lines and public roads. The maximum credit allowed annually for any one project is $10,000.Any unused credit up to $30,000 may be carried forward for three years.
  • Base Closure Credit. An income tax credit is allowed employers who hire employees terminated from employment as a result of the closing or realignment of a federal military base. The credit is 10% of wages earned up to $10,000, for a maximum $1,000 credit.
  • Economic Impact Zone Credit. An income tax investment credit is allowed for the cost basis of qualifying property placed in service in a taxable year in an economic impact zone. The amount of the credit of the qualifying property is determined by the recovery period of the property under 168(e) of the Internal Revenue Code. A 10-year carryover of unused credits is allowable.
  • Family Independence Credit. An income tax credit is allowed to employers who paid qualified wages to qualifying recipients of Family Independence payments (formerly AFDC). The credit is 20% of wages for the first year, 15% of the wages for the second year and 10% of wages for the third year of employment. Certain basis adjustments and recapture rules apply to the credit.

  • Additional Family Independence Credit. Employers are allowed an additional income tax credit for hiring qualified Family Independence payment recipients (formerly AFDC) in a distressed or least-developed county. The credit is $175 per month for each full month of full-time employment for the first three years of employment per employee.

  • Motion Picture Project/Production   Effective for taxable years after 1998, there is allowed an income tax credit of 33%, but not more than $15,000, of a taxpayer's investment in a qualified South Carolina motion picture project.  In addition, an income tax credit is allowed for 33% of a taxpayer's investment in setting up a motion picture production or post-production facility in South Carolina.

  • Community Development Credit  A credit exists against income for amounts invested in a community development corporation or financial institution.  The credit is not allowed if the amount invested is claimed as an IRC Section 170 deduction.  The credit may not exceed 5 million dollars for all taxpayers.  A taxpayer must first obtain a certificate form the SC Department of Commerce attesting that the entity invested in qualifies for the credit and that the credit remains available.  The credit is limited to 33% of the amount invested and may be carried forward to any tax year beginning before ten years from the date of stock acquisition.  If the entity invested in redeems the stock or other equity interest within five years, the credit is disallowed retro9actively.  The credit is effective for tax years after 2000 and expires on June 1, 2005.
  • Qualified Conservation Contribution Credit  A credit is allowed for a gift of land for conservation or for a qualified real property interest.  The gift or contribution has to e made after May 31, 2001.  The taxpayer must qualify for and claim a federal charitable deduction for the gift or contribution.  The credit is limited to 25% of the allowable federal deduction, to $250 per acre of property, and is transferable upon written notification to and approval by the South Carolina Department of Revenue.
  • Brownfields Voluntary Cleanup Program  A corporate income tax credit for costs of voluntary cleanup activity by a nonresponsible party pursuant to the Brownfields Voluntary Cleanup Program.  This credit covers eligible cleanup expenses after 2001, but only if DHEC issues a certificate of completion after May 28, 2002.

Job Development Credits

Under South Carolina law, businesses are allowed to claim a percentage of employee income tax withholdings for qualifying business expenditures. In some instances, another percentage of the withholdings is allocated to the Rural Infrastructure Fund that will provide grants to least-developed and underdeveloped counties. These amounts are referred to in the law as "job development credits." The determination as to how much of a job development credit a business may claim is determined by the county classification in which the qualifying business is located.

County Classification

Infrastructure

Employer

Distressed

0%

100%

Least developed

0%

100%

Least developed

0%

100%

Under developed

15%

85%

Moderately developed

30%

70%

Developed

45%

55%

Development. The South Carolina Coordinating Council for Economic Development ("Council") must certify that the benefits of the project exceed the cost.

The amount to retain from withholding is calculated as a percentage of the gross wages of each new employee as follows:

Gross Wage Per New Employee

Percentage to Retain

(for 2002)

$7.18 ? $9.57

2%

$9.58 ? $11.96

3%

$11.97 ? $17.95

4%

$17.96 and over

5%

Note: The hourly gross wage figures will be adjusted annually by an inflation factor determined by the State Budget and Control Board.

The sum of the amounts determined with regard to each new employee will be the amount allowed to be claimed from the withholding for all employees. The amount is not based upon an average salary for all employees.

To be eligible to apply to claim job development credits, the business must be engaged primarily in a business that is a qualifying business for the purpose of the jobs tax credit statute. The business must provide a benefits package to full-time employees that include health care.

The business must enter into a revitalization agreement that must be approved by the Council.

The job development credits retained by the business may be used for training costs and facilities; acquiring and improving real estate; improvements to utility systems; fixed transportation facilities; construction or improvements of real property and fixtures for the purpose of complying with environmental requirements; training for all relevant employees connected to the company's export process; apprenticeship programs and relocation expenses associated with new national corporate headquarters that quality for the personal property portion of the headquarters credit.

Job Retraining Credit

 A qualifying business may negotiate with the Council to claim from employee withholding an amount equal to $500 a year for each production employee being retrained. This incentive is available to existing businesses. A qualifying business may retain up to $2,000 over a five-year period for each employee being retrained.

The business must show that the retraining is necessary and must match the amount retained, dollar for dollar.

Special Returns

Qualified businesses will be provided with appropriate withholding tax returns for claiming Job Development Credits. Additional information or forms may be obtained by contacting the Withholding Tax Section at the Department of Revenue at (803) 898-5776.

Filing Requirements

Corporations are required to file one of the following forms (whichever is applicable):

  •  SC1120 for corporations
  • SC1120S for 'S' corporations
  • SC1120U for utilities.

These forms incorporate three filing requirements and every corporation must complete all three sections of the form, and supporting schedules.

1.  Computation of income tax liability
 2.  Computation of license fee, and 
 3.  Annual Report of Corporations

Tax-exempt organizations file form SC990T with South Carolina only if they have unrelated business income.  These tax exempt organizations with unrelated business income must file returns using the SC990T no later than the 15th day of the fifth month following the close of the taxable year.

Corporate income tax returns are due no later than the 15th day of the third month following the close of the taxable year.

Corporations with a multi-state business are taxed only on the income earned or derived within South Carolina. This portion is determined by allocation and apportionment of income.

South Carolina generally requires use of one of the following apportionment methods:

1.  A four-factor apportionment method (based on property, payroll, but double-weighting the sales factor) for taxpayers whose principle business is manufacturing or any form of collecting, buying, assembling, or processing goods and materials within this state, or selling, distributing or dealing in tangible personal property within this state.

 If the sales ratio does not exist, the average is computed by using the existing ratios. If a ratio other than the sales ratio does not exist, the average is computed by using the existing ratios plus one.

2.  A gross receipts apportionment method for taxpayers whose principle profits or income of a taxpayer is derived from sources other than those listed above.

Examples of corporations subject to gross receipts method of appointment are construction contractors, service companies other than public service corporations and corporations primarily engaged in rental real estate activities, or

3.  A special apportionment factor provided for certain companies, such as railroad companies, telephone companies, pipeline companies, airline companies and shipping lines.

A business that operates in more than one state may petition the Department of Revenue to use a method other than the standard apportionment method in determining its South Carolina taxable income. This also applies to businesses planning a new facility or the expansion of an existing facility in South Carolina. However, for the business, the special allocation and apportionment method is only effective for five years.

 The business must enter into a contract regarding the allocation and apportionment method.

 The Advisory Coordinating Council for Economic Development must certify that the benefits of the facility outweigh the costs and that the facility will have a significant beneficial effect on the region for which it is planned.

Extension to File

If any corporate income tax or license fee is anticipated to be due, the taxpayer must use South Carolina extension form SC1120-T. 

If no income tax or license fee is anticipated to be due and the taxpayer has requested a federal extension, the federal extension will be accepted as a South Carolina extension if the corporate return is received within the time as extended by the Internal Revenue Service. 

Corporations filing a consolidated return should file a single South Carolina extension and attach a schedule listing the corporations to be included in the South Carolina consolidation.  A federal extension will be accepted if all corporations filing in South Carolina are included in one or more federal extensions.  A schedule must also be attached listing the corporations included in the South Carolina consolidation.

A copy of the federal or South Carolina extension(s) must be attached to the return when filed.

There is no extension for payment of corporate income tax or license fee.  Any income tax or license fee due must be paid by the prescribed due date to avoid the assessment of late penalties and interest. 

Estimated Tax Payments

Declaration of estimated tax payments are required by the 15th day of the 4th, 6th, 9th and 12th months following the beginning of the taxable year.

The total of the estimated payments must equal 100% of the final tax liability, based on requirements for federal estimated income in IRC Section 6655. No estimated tax payment is required if the estimated tax is less than $100 annually.

Electronic Payment Over the Internet

You may also make Corporate Tax declaration payments online by using our ePAY system from our website.  There is no cost to you and no registration is required.  Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft).   Go to our website at www.sctax.org to use the program.

Consolidated Returns

Consolidated returns are permitted for parent companies and substantially controlled subsidiaries or two or more corporations under substantially the control of the same interest, provided all parties are taxable in South Carolina and have the same accounting year.

"Substantially controlled" means the ownership of at least 80% of the voting power of all classes of stock of all corporations that are a party to a consolidated return

County Rankings

South Carolinas 46 counties are ranked and designated annually for job tax credit purposes with equal weight given to unemployment rate and per capita income and then adjusted in accordance with special rules in South Carolina Code subsections 12-6-3360(B) and 12-6-3360(L), as applicable. The job tax credit is dependent, in part, on per capita income and unemployment rate data received from the South Carolina Employment Security Commission and Budget and Control Board. Because of amendments in the job tax credit statute, it is necessary to have three rankings of South Carolina's counties for purposes of the job tax credit.  

Ranking List #1: For new, full time jobs created in tax years which begin in 2003, where the job tax credit was first earned after June 18, 2002, and increases in such jobs.

The Department has ranked South Carolina's counties as "distressed," "least developed," "under developed," "moderately developed," and "developed" for computation of the new job tax credit. The county where the business facility is located determines the credit amount that a business may receive for each new, full time job created.  The basic amount of credit per year for each new, full time job created is $8,000 in a distressed county, $4,500 in a least developed county, $3,500 in an under developed county, $2,500 in a moderately developed county, and $1,500 in a developed county.

Distressed

Least Developed

Under Developed

Moderately Developed

Developed

Chester

Abbeville

Calhoun

Aiken

Anderson

Chesterfield

Allendale

Colleton

Beaufort

Charleston

Clarendon

Bamberg

Darlington

Berkeley

Greenville

Dillon

Barnwell

Greenwood

Dorchester

Lexington

Hampton

Cherokee

Lancaster

Florence

Richland

Lee

Edgefield

Pickens

Horry

Spartanburg

Marion

Fairfield

Sumter

Kershaw

York

Marlboro

Georgetown

 

Newberry

 

McCormick

Jasper

 

Oconee

 

Orangeburg

Laurens

 

 

 

Union

Saluda

 

 

 

Williamsburg

 

 

 

 

Ranking List #2: For new, full time jobs created in tax years which begin in 2003, where the job tax credit was first earned after 1995 and before June 19, 2002, and increases in such jobs.

The Department has ranked South Carolina's counties as "least developed," "under developed," "moderately developed," and "developed" for computation of the new job tax credit. The county where the business facility is located determines the credit amount that a business may receive for each new, full time job created.  The basic amount of credit per year for each new, full time job created is $4,500 in a least developed county, $3,500 in an under developed county, $2,500 in a moderately developed county, and $1,500 in a developed county.

Ranking List #3: For new, full time jobs created in tax years which begin in 2003, where the job tax credit was first earned before 1996, and increases in such jobs.

 The Department has ranked South Carolina's counties as "less developed," "moderately developed," and "developed" in accordance with Code Section 12-6-3360, prior to its amendment in 1996. The county where the business facility is located determines the credit amount that a business may receive for each new, full time job created.  The basic amount of credit for each new, full time job created is $1,000 in a less developed county, $600 in a moderately developed county, and $300 in a developed county.

Less Developed

Moderately Developed

Developed

Abbeville

Allendale

Aiken

Bamberg

Barnwell

Anderson

Cherokee

Berkeley

Beaufort

Chester

Calhoun

Charleston

Chesterfield

Colleton

Dorchester

Clarendon

Darlington

Florence

Dillon

Edgefield

Greenville

Fairfield

Georgetown

Horry

Hampton

Greenwood

Lexington

Lee

Jasper 

Oconee

Marion

Kershaw

Pickens

Marlboro

Lancaster

Richland

McCormick

Laurens

Sumter

Orangeburg

Newberry 

Spartanburg   

Union

Saluda

York

Williamsburg

 

 

Limited Liability Companies and Partnerships

The Basics

A limited liability company (LLC) is an unincorporated business association that provides its owners (members) limited liability and flexible management and financial alternatives. An LLC can provide the favorable pass-through tax treatment of partnerships and the limited personal liability of corporations. An LLC is formed when one or more initial members sign Articles of Organization and deliver that to the Secretary of State along with the filing fee.

The Secretary of State may dissolve an LLC that does not maintain its governmental filing requirements or does not file a tax return or pay tax. If an LLC is a corporation for federal income tax purposes, it is a corporation for South Carolina income tax purposes. Likewise, if an LLC is a partnership for federal income tax purposes, it is a partnership for South Carolina income tax purposes. South Carolina has adopted all of the partnership provisions (sub chapter K) of the Internal Revenue Code and IRC Section 7701 that defines partnership and corporation.

United States Treasury regulations govern how an organization is classified for federal tax purposes. There are United States Department of Treasury regulations for determining the classification of an unincorporated business organization as either a partnership or a corporation for federal income tax purposes.

These regulations replaced the prior four-factor test of:

  • Continuity of life
  • Centralized management
  • Limited liability and
  •  Free transferability of interests

Under these regulations an unincorporated entity can choose to be taxed as a partnership (or disregarded as an entity entire separate from its owner if it is a single member LLC) or be taxed as a corporation. This new classification process is referred to as "check the box." For South Carolina income tax purposes, the South Carolina Department of Revenue follows the "check the box" regulations.

The following definitions will be used:

° Partnership includes an LLC taxed for SC income tax purposes as a partnership.

° Partner includes any member of an LLC taxed for SC income tax purposes as a partnership.

° Corporation includes an LLC or professional or other association taxed for SC income tax purposes as a corporation.

° Shareholder includes any member of an LLC taxed for SC income tax purposes as a corporation.

° A Limited Liability Partnership (LLP) is formed when an application is filed by a majority of the partners or any one or more partners authorized to execute it, and delivered to the Secretary of State with a $100 filing fee.

An LLP's registration is effective for one year only. Each year the LLP must file a renewal application within the 60-day period preceding the expiration date.

The Secretary of State is not required to notify an LLP that its registration is up for renewal.

° A Single Member Limited Liability Partnership that is not taxed as a corporation for South Carolina income tax purposes will be ignored for all South Carolina tax purposes. Therefore, a single member who is a corporation will consider income from the Single Member LLC from one of its divisions. An individual member would consider the income from a Single Member LLC as if it were Schedule C income.

Partnerships  -- The Basics

A partnership is a legal entity that is jointly owned by two or more individuals. The owners are personally responsible for all debts of the business, even those in excess of the amount invested in the business.

Liability for Returns

Every partnership in South Carolina, whether domestic or foreign, doing business or owning business in South Carolina must make a return of income on the Partnership Return of Income, form SC1065 not later than the 15th day of the fourth month following the close of the accounting period.

The income or loss of a partnership will be computed in the same manner and on the same basis as in the case of the individual.

Taxpayers carrying on business in a partnership are liable for income tax only in their individual capacity, and each partner must include in their return their distributive share, whether distributed or not, of the net income or loss of the partnership for the taxable year. If the taxable year of a partner is different from that of the partnership, the amount included will be based on upon the partnership income of the year ending with the taxpayer's taxable year.

Information to be Furnished to the Partners

A separate Schedule SC-K must be provided to each partner, reflecting the partner's proportionate share of South Carolina income.  Schedule SC-K is a worksheet for making South Carolina adjustments to federal Schedule K items and showing the amount of these items that are allocated or apportioned to South Carolina.  Provide each nonresident partner with a federal Form 1099-MISC with "SC only" written at the top, showing the amount of the nonresident partner's withholding.

When and Where Do I File?

A South Carolina Partnership return of income should be completed after the federal partnership return is completed, but is due no later than the 15th day of the fourth month after the close of the taxable year.

Failure to file your return on time may subject the Partnership to a penalty. If additional time is still needed to file your SC1065, you may file form SC4868 by the date due of your return.

 The South Carolina Department of Revenue will accept the federal extension for a partnership in lieu of SC4868.

If you intend to use the federal extension in lieu of South Carolina's extension, it is not necessary to send South Carolina a copy of the federal form by the due date of your tax return. Simply attach a copy of the federal extension when you file the tax return within the extended period.

 Upon request the IRS grants partnerships an automatic three-month extension, which is honored by South Carolina, which is shorter than South Carolina's 120-day extension. The IRS requires a second request for an additional extension of up to three months (six months total), which is also honored by South Carolina.

 Partners' returns are extended separately. A copy of each federal K-1 is required to be attached to form SC1065.

 Partners with income or loss must file a tax return regardless of tax liability. See Schedule SC-K on information to be furnished to partners.

What Happens if You Don't File?

A taxpayer who fails to remit tax when due will be charged interest from the time the tax was due until paid in its entirety. Penalties may be applied for late payment of tax and for late filing of returns. Penalties may also be applied for negligence and for disregard of regulations.

Selected Forms to Use

CL-1   Initial Annual Report of Corporations
SC 616  Certification of Eligibility for South Carolina New Jobs Tax Credit
SC 990-T    Return of Organization Exempt from Income Tax
SC 1065     Partnership Return of Income
SC 1120     'C' Corporation Income Tax Return
SC 1120S   'S' Corporation Income Tax Return
SC 1120-T   Tentative Corporation Tax Return and Conditional Extension
SC 1120S-WH  Withholding Tax on Nonresident Shareholders of 'S' Corporations
SC 1120TC   Corporation Tax Credits
SC 1120-CDP Corporation Declaration of Estimated Tax Return
SC 2220           Underpayment of Estimated Tax by Corporation
SC1040 TC      Tax Credits
Schedule TC-1  Drip/Trickle Irrigation Systems Credit
Schedule TC-2          Minority Business Credit
Schedule TC-3          Water Resources Credit
Schedule TC-4          New Jobs Tax Credit
Schedule TC-5          Scenic River Tax Credit
Schedule TC-6          Infrastructure Credit
Schedule TC-7          Palmetto Seed Capital Credit
Schedule TC-8          Corporate Headquarters Credit
Schedule TC-9          Credit for Child Care Program
Schedule TC-10        Credit for Wages Paid to Employees Terminated Due to Base Closure
Schedule TC-11        Economic Impact Zone Property Investment Credit
Schedule TC-12        Credit for Employers Hiring AFDC Recipients
Schedule TC-12A     Additional Credit for Employees Hiring AFDC Recipients
Schedule TC-13        Motion Picture Credit
Schedule TC-13A     Motion Picture Project Certification
Schedule TC-13B     Motion Picture Production Facility Certification
Schedule TC-14        Community Development Tax Credit
Schedule TC-15        Corporate Tax Moratorium per Section 12-10-35
Schedule TC-16        Corporate Tax Moratorium per Section 12-6-3365
Schedule TC-17        Recycling Property Tax Credit
Schedule TC-18        Research and Development Tax Credit
Schedule TC-19        Credit for Qualified Conservation Contribution of Real Property After May 31, 2001
Schedule TC-20        Credit for Expenses Incurred through Brownfields Voluntary Cleanup Program

For the most up-to-date forms, visit the South Carolina Department of Revenue website at www.sctax.org and go to the Forms and Instructions button.

Individual Income Tax

South Carolina's income tax structure follows the federal income tax laws. South Carolina generally accepts the adjustments, exemptions and most deductions allowed on your federal return. Your federal taxable income is the starting point in determining your state income tax liability. 

You are required to file a South Carolina income tax return if you earn income in South Carolina and are required to file a federal return. Even if you are not required to file a federal return and you have taxes withheld from your wages, you should file a state income tax return in order to obtain a refund. For calendar year taxpayers, individual income tax returns are due on April 15 of each year.

Business income must be reported on Schedule C of the federal tax return.  Attach a copy of your federal return to your state return when you file a Federal Schedule C, D, E or F

Additions to Income

The following are examples of items that must be added back to your federal taxable income for South Carolina purposes:

  • Any out-of-state losses, if subtracted on your federal return
  • Interest income from state and local obligations other than those in South Carolina
  • South Carolina income tax paid if itemized and deducted on your federal return
  • Expenses related to National Guard and military reserve income

For a complete list, see form SC1040 and instructions; a copy is available at the Department of Revenue website, www.sctax.org.

Deductions from Income

The following are examples of items that may be deducted from your federal taxable income for South Carolina purposes:

  • Income from an out-of-state business if included on your federal return
  • Interest income from U.S. obligations
  • Beginning with the first year retirement income is received, a taxpayer may take a deduction of up to $3,000 from income received from a qualified retirement plan.
  • At age 65, the deduction increases up to $10,000 annually.  South Carolina resident taxpayers age 65 and older are allowed a deduction of up to $15,000 from any source of income. This differs from the retirement deduction in that the $3,000/$10,000 deduction is allowed only against retirement income.  This deduction must be offset by any amount claimed as a retirement deduction.
  • National Guard or armed forces reserve annual training and drill pay (pay for tours of active military duty is not deductible)
  • Disability retirement income received due to permanent and total disability
  • Social Security benefits if included as income on the federal return
  • 44% of net capital gains with a one-year holding period (beginning with tax year 2001)
  • A deduction for each dependent claimed on your federal return who has not reached age six by December 31 of the tax year (the deduction is equal to 100% of the federal personal exemption)

 For a complete list of deductions, see form SC1040 and instructions; a copy is available at the Department of Revenue website, www.sctax.org.

Tax Rates

Tax rates are adjusted annually to partially offset inflation. The South Carolina 2002 tax rates indexed are:

(Rates apply to Line 2 of the SC1040 or Line 1 of the SC1040A)

 "Long" method:

OVER

BUT NOT OVER

TAX 

+ %

OF  EXCESS OVER

$0

$2440

0

2.5%

$0

$2,440

$4,880

$61

3%

$2,440

$4,880

$9,760

$134

4%

$4,880

$7,320

$9,760

$232

5%

$7,320

$9,760

$12,200

$354

6%

$9,760

$12,200

----------

$500

7%

$12,200

  

 "Short" method:

OVER

BUT NOT OVER

%

LESS

$0

$2,440

2.5%

$0

$2,440

$4,880

3%

$12

$4,880

$7,320

4%

$61

$7,320

$9,760

5%

$134

$9,760

$12,200

6%

$232

$12,200

-----------

7%

$354

Income Tax Credits

South Carolina has a number of income tax credits, and some examples are listed below:

  • A two-wage earner credit allows a maximum credit of $210 if both spouses work
  • A $300 maximum credit is allowed for expenses paid by an individual for his own support or the support of another to an institution (in any state) providing nursing facility level of care or paid to a provider for in-home or community care
  • A credit is allowed for income taxes paid to another state on income earned in the other state and taxed by both states
  • A child and dependent care credit allows you to claim 7% of your allowable federal expenses for the care of a child or an elderly person, if that care is necessary for you to work

For a complete list, see form SC1040, SC1040TC and instructions to each; copies are available at the Department of Revenue website, www.sctax.org

Estimated Tax Payments

Declaration of estimated tax is the method you use to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, capital gains and prizes. You may also have to pay estimated tax if enough tax is not being withheld from your salary, pension or other income. Generally you should make estimated tax payments if you figure your estimated tax liability will be $1000 or more. If your estimated tax liability will exceed $1000, you must pay in at least 90% of the tax to be shown on your current income tax return or 100% of the tax shown on your last year's income tax return, whichever is less.  The 100% rule is modified to be 110% of last year's tax liability for an individual with an adjusted gross income of more than $150,000 as shown on the return for the preceding tax year.

Estimated tax payments are due April 15, June 15, September 15 and January 15 for calendar year taxpayers. 

Part-Year Residents

If you moved into South Carolina during the year, you are a part-year resident. As a part-year resident, you may consider yourself a full-year resident or a nonresident. You may choose the filing method that is most advantageous to you. If you elect to be a full-year resident, file the form SC1040. Report all your income as though you were a resident for the entire year. You will be allowed a credit for taxes paid to another state. If you elect to be a nonresident, file your form SC1040 with the Schedule NR.   You will be taxed only on income earned in South Carolina and will prorate your deductions and exemptions.

Extension to File

If you need more time to file a South Carolina income tax return, you are allowed an extension equal to the time allowed by the IRS.  The first federal extension is automatic and allows you through August 15 to file your return. If you need additional time, you may request an additional extension through October 15 if you have good cause for the delay in filing. A South Carolina extension is not automatic.  To receive a state extension, attach a copy of your federal extension request to your state return when you file it.

If you owe additional state income tax, you are required to file form SC4868 before April 15 and attach payment of taxes you estimate you owe. Remember that an extension only allows you additional time to file your return. Your tax must still be paid by April 15 to avoid penalty and interest.

SCnetFile will allow taxpayers to file extensions using form SC4868 on the Internet.

If you owe the state, you can pay by credit card when filing your extension ? MasterCard and Visa are accepted. Visit the Department of Revenue website www.sctax.org for more details.

Reporting and Paying the Tax

In addition to mailing paper returns, South Carolina also allows electronic methods of filing individual income tax returns.

Using FastFile, South Carolina accepts electronically filed state income tax returns filed jointly with federal returns, as well as state-only filings.  Refund and balance due returns are accepted electronically. Refunds may be deposited directly into your bank account.

FastFile lets you use one of four programs to file your South Carolina tax returns. Visit the Department of Revenue website at www.sctax.org for more information on each of these options. They are:

  • TeleFile
    • Use your touch-tone telephone
    • File a simple Individual State Tax return in about eight minutes
  •  SCnetFile
    • File your South Carolina state tax return through the Department of Revenue's website (www.sctax.org)
    • You can pay your balance due by credit card
    • It's a free service
  • Online Filing
    • Easy access to tax preparation software
    • Tailored to fit your state and federal tax returns.
  • Electronic Filing
    • A professional tax preparer can send your South Carolina state and federal tax returns using a computer modem
    • It's fast, safe and easy

Electronic Returns Transmission

For online and electronic filing, the following returns may be electronically transmitted:

  • SC1040 Long form
  • SC1040A Short form
  • Schedule NR    Nonresident Schedule
  • Schedule W  Two-Wage Earner Credit
  • Forms W-2 and 1099-R
  • Supporting federal return and schedules
  • Refund returns
  • Balance due returns
  • Zero balance returns

For the most up-to-date forms, visit the South Carolina Department of Revenue website at www.sctax.org and go to the Forms and Instructions button.

Online and State and Federal Agencies Offering Assistance

State Online Assistance

For quick and easy access to all aspects of South Carolina Government, as well as links to other local, county and national sites, visit the official South Carolina state government website at www.myscgov.com.

Simply enter a few words describing the information you need and a powerful search engine will scan thousands of state government web pages to find just the site you need. Use the custom features to focus on the issues that directly impact your business and your life.

South Carolina Business One-Stop (SCBOS) located on the www.myscgov.com state portal and contains information and forms needed for opening a business in South Carolina.

To locate the SCBOS website, go to: www.myscgov.com?Click on the Business tab ? Click on the South Carolina Business One-Stop link

Locate the information and forms needed to start your business ? SCBOS is just beginning and not all forms may be online.

State Agencies

  • For information on fire safety, service stations, fire extinguishers and liquefied petroleum gas, contact:

SC Department of Labor, Licensing and Regulation
Division of Fire and Life Safety
141 Monticello Trail
Columbia SC 29203
Telephone: (803) 896-9800
Website: www.llr.state.sc.us

  •  For information on Articles of Incorporation, foreign corporations authorized to conduct business in this state, security registration and trademark registration, contact:

Secretary of State
Edgar Brown Building
1205 Pendleton Street
Post Office Box 11350
Columbia SC 29211
Telephone: (803) 734-2158
Website: www.scsos.com

  •  For information on Occupational Safety and Health (OSHA), labor-management services, employment standards, licensing for elevators and amusement rides, and migrant and seasonal farm workers, contact:

SC Department of Labor, Licensing and Regulation
Landmark Center
3600 Forest Drive
Post Office Box 11329
Columbia SC 29211-1329
Telephones:   General Information  (803) 896-4300
OSHA (803) 734-9606
Website: www.llr.state.sc.us

  •  For information on professional licensing and regulations, contact:

SC Department of Labor, Licensing and Regulation
110 Centerview Drive
Kingstree Building
Synergy Executive Park
Post Office Box 11329
Columbia SC 29211
Telephone: (803) 896-4300
Website: www.llr.state.sc.us

  •  For information on public employment service, contact:

SC Employment Security Commission
1550 Gadsden Street
Post Office Box 995
Columbia SC 29202
Telephone: (803) 737-3071
Website: www.sces.org

  • For information on water pollution control, air quality, solid waste, hazardous materials, water supply, shellfish, recreational waters and radiological health, contact:

SC Department of Health and Environmental Control
Sims-Aycock Building
2600 Bull Street
Columbia SC 29201
Telephone: (803) 898-3432
Website: www.scdhec.com

  • For information concerning any business activities in coastal areas, contact:

SC Department of Health and Environmental Control
Office of Ocean and Coastal
Resource Management

Charleston Office:
1362 McMillan Ave Ste 400
Charleston SC 29405
Telephone: (843) 744-5838

Beaufort Office:
104 Parker Drive
Beaufort, SC 29906
Telephone (843) 846-9400

Myrtle Beach Office:
1705 N. Oak Street, Suite 6
Oak Street Plaza Offices
Myrtle Beach, SC 2957
Telephone (843) 626-7217

Website: www.scdhec.com

  • For information on industrial revenue bonds, contact:

SC Department of Commerce
Business Development and Assistance Division
Post Office Box 927
Columbia SC 29202
Telephone: (803) 737-0400
Website: www.callsouthcarolina.com

  • For information on electric and communication services, contact:

Public Service Commission
101 Executive Center Drive
Saluda Building
Synergy Executive Park
Columbia SC 29211
Telephone: (803) 896-5100
Website: www.psc.state.sc.us

  • For information on credit services, motor club services, physical fitness services, pawnbrokers and mortgage loan brokers, contact:

SC Department of Consumer Affairs
3600 Forest Drive, 3rd Floor
Post Office Box 5757
Columbia SC 29250
Telephone: (800) 922-1594 or
(803) 734-4200 in Columbia
Website: www.myscgov.com

  • For information on private security or private investigation business and regulations of pistols, contact:

SC Law Enforcement Division
Regulatory Services
4400 Broad River Road
Post Office Box 21398
Columbia SC 29221
Telephone: (803) 896-7014
Website: www.sled.state.sc.us

  • For information on groundwater in capacity use areas; construction in navigable waters; oil and gas exploration, drilling and production; water use reporting; water well logging; state climatology; scenic rivers; drought plans, and inter-basin transfers of waters, contact:

SC Department of Natural Resources
Land, Water And Conservation Division
2221 Devine St. Suite 222
Columbia, SC 29205
Telephone: (803) 734-9100
Website: www.dnr.state.sc.us

  •  For information on registering aircraft in South Carolina, contact:

SC Department of Commerce
Aeronautics Division
Columbia Metropolitan Airport
2553 Airport Blvd
W Columbia, South Carolina 29228

PO Box 280068
Columbia, South Carolina 29228-0068
(803) 896-6260 or
(800) 922-0574

Website: www.callsouthcarolina.com

Federal Agencies

  •  For information concerning federal tax issues including employers' withholding, income tax, excise tax, and tax forms contact:

Internal Revenue Service
Telephone: (800) 829-1040 (statewide)
Website: www.irs.gov

Federal employers' identification (FEI) numbers can also be issued at any South Carolina Department of Revenue Taxpayer Service Center. See the Directory for locations.

  • For information on Social Security taxes, contact:

Social Security Administration
Strom Thurmond Building
1835 Assembly Street, 2nd Floor
Columbia SC 29201
Telephone: (800) 772-1213 statewide or
(803) 929-7635 in Columbia

Website: www.ssa.gov

  • For information on federal labor laws, including the minimum wage, contact:

United States Department of Labor
Wage and Hour Division
Strom Thurmond Building
1835 Assembly Street, Room 1072
Columbia SC 29201
Telephone: (803) 765-5981
Website: www.dol.gov

  • The United States Small Business Administration provides financial, technical and management assistance to help Americans start, run and grow their businesses. The Columbia office serves the entire state. For more information contact:

United States Small Business Administration
South Carolina District Office
Strom Thurmond Building
1835 Assembly Street, Room 358
Columbia SC 29201
Telephone: (803) 765-5377
Website: www.sba.gov


Local Government Regulations

Business License - Business licenses are required for all businesses within a city or municipal district. Many counties do not have business license requirements, but it is wise to check with the county in which your business will be located. Contact city hall or county offices for more information.

Building Code - State law mandates that all jurisdictions adopt the Southern Standard Building Code Package (building, plumbing, gas, mechanical and the National Electrical Code). Adoption of all other codes must have prior approval by the South Carolina Building Code Council. The local building official should review all plans.

Building Change Permit - If changes are required in the building that houses your business, you must apply for a building change permit with the city or county building inspection department. Fees are charged based on the cost of the changes.

Zoning - The city and county zoning divisions maintain information on designated areas. Special permits may be obtained to locate a business in an area zoned for another use.

Local planning commissions usually handle requests for changes in area zoning. Local officials must approve all changes in zoned use.

Fire Prevention - The Bureau of Fire Prevention conducts fire safety inspections in all commercial buildings as required by law. The purpose of inspection is to seek out and eliminate conditions that would endanger life and property. Public education and awareness on fire safety is also a vital part of the Bureau of Fire Prevention. Contact your local fire department for more information.

 Food Permit - Any food-related business, such as restaurants and grocery stores, must comply with the city, county and state food ordinances. Contact your city or county health department for additional information.

 Small Business Development Centers

Small Business Development Centers (SBDC) provide assistance to new and existing business owners. For additional information, contact the Small Business Development Center nearest you.

State SBDC Director's Office

Frank L. Roddey SBDC of SC
University of South Carolina
Moore School of Business
Columbia SC 29208
Telephone: (803) 777-4907

Clemson Region

Clemson SBDC
Clemson University
425 Sirrine Hall
Clemson SC 29634
Telephone: (864) 656-3227

Greenville SBDC
Merovan Center
1200 Woodruff Road, Ste C-38
Greenville SC 29607
Telephone: (864) 297-1016

Greenwood SBDC
Upper Savannah Area Office
600 Monument Street, Ste 106
Greenwood SC 29648
Telephone: (864) 943-8028

Spartanburg Area SBDC
Spartanburg Human Resources Center
142 South Dean Street, Suite 216
Spartanburg, SC, 29302
Telephone:  (864) 316-9162
(864) 596-3602

University of South Carolina Region

 University of South Carolina-Aiken SBDC
471 University Parkway, Box 9
School of Business
Aiken, SC 29801
Telephone: (803) 641-3646

University of South Carolina SBDC
801 Carteret Street
Beaufort SC 29902
Telephone: (843) 521-4143

Charleston Area SBDC
5900 Core Drive, Suite 104
North Charleston, SC 29406
(843) 740-6160

University of South Carolina SBDC
Moore School of Business
Columbia SC 29208
Telephone: (803) 777-5118

Hilton Head SBDC
1 College Center Drive
Hilton Head Island SC 29928
Telephone: (843) 842-3552

Sumter SBDC
University of South Carolina
200 Miller Road
Sumter SC 29150
Telephone: (803) 938-3833

Winthrop University Region

Myrtle Beach Area SBDC
Myrtle Square Mall, # 11
2501 North Kings Highway
Myrtle Beach, SC 29577

Winthrop University SBDC
118 Thurmond Building
Rock Hill SC 29733
Telephone: (803) 323-2283

Florence-Darlington Tech SBDC
2715 West Lucas Street
Florence SC 29501
Telephone: (843) 661-8256

Occupational and Professional Licensing

South Carolina's occupational and professional licensing boards are responsible for the examination and licensing of people in various industries. Most boards require that candidates meet certain educational and/or technical background requirements before becoming licensed. Call the appropriate board at the telephone number listed (below) for specific information.

Each of the licensing boards listed below are located in Columbia and all of the telephone numbers are Area Code 803.

 

Licensing Board    

Telephone Number

Accountancy

896-4492

Architectural Examiners

896-4408

Auctioneers Commission   

8964494

Barber Examiners

896-4491

Chiropractic Examiners

896-4587

Contractors

896-4586

Cosmetology

896-4568

Dentistry

896-4599

Engineers and Land Surveyors

896-4422

Environmental Systems Operators

896-4430

Foresters

896-4494

Funeral Services

896-4494

Geologists

896-4494

Landscape Architects

734-9131

Law Examiners

734-1080

Long-term  Health Care Administrators

896-4544

Manufactured Housing

896-4682

Massage/Bodywork Therapy

896-4494

Medical Examiners

896-4500

Nursing

896-4550

Occupational Therapy

896-4683

Opticianry

896-4681

Optometry

896-4679

Pharmacy

896-4700

Physical Therapy

896-4655

Pilotage-Port of Charleston Harbor Pilot

896-4830

Podiatry Examiners

8964685

Psychology

896-4661

Real Estate

896-4400

Residential Home Builders

896-4696

Social Work

896-4665

Soil Classifiers

734-9131

Speech, Language, Audiology & Pathology

896-4650

Veterinary Medical Examiners

896-4598

 

County Auditors, Assessors and Treasurers

County

Assessor/Auditor

Real Property

Treasurer

Personal Property

Tax Collections
Abbeville (864) 459-4921 459-2719 459-2539
Aiken  803) 642-1576 642-1508  642-2055
Allendale  (803) 584-2572 584-2011 584-3876
Anderson (864) 260-4028 260-4027 260-4033
Bamberg  (803) 245-3010 245-3006 245-3003
Barnwell (803) 541-1011 541-1040 541-1050
Beaufort (843) 525-7296 525-7286 525-7107
Berkeley (843) 723-3800 723-3800 761-6900
Calhoun (803) 874-3613  874-3623  874-3519
Charleston  (843) 723-6718  723-6749 723-6759
Cherokee (864) 487-2552  487-2543 487-2547
Chester  (803) 377-4177 385-2607 385-2608
Chesterfield (843) 623-7362  623-2338 623-2563
Clarendon (803) 435-4423 435-2013 435-8307
Colleton (803) 549-1213 549-2131 549-2233
Darlington (843) 398-4180 398-4110 398-4160
Dillon  (843) 774-1412 774-1418 774-1416
Dorchester  (803) 563-0156 563-0118 563-0165
Edgefield  (803) 637-4066 637-4045  637-4069
Fairfield  (803) 635-1411 635-1411 635-1411
Florence (843) 665-3056  665-3088  665-3041
Georgetown (843) 546-1241 546-5941 546-5179
Greenville  (864) 467-7300 467-7040 467-7210
Greenwood   (864) 942-8537 942-8543 942-8528
Hampton (803) 943-7507  943-7504 943-7509
Horry (843) 248-1361 248-1254 248-1258
Jasper (843) 726-7725  726-7732  726-7722
Kershaw  (803) 425-1500 425-1503  425-1506
Lancaster  (803) 285-6964  285-7424 285-7939
Laurens (864) 984-6546  984-2535 984-4742
Lee (803) 484-5341  484-5341 484-5341
Lexington (803) 359-8190 359-8181  359-8217
Marion  (843) 423-8225 423-8205  423-8230
Marlboro  (843) 479-5602 479-5608  479-5603
McCormick (864) 465-2931  465-2107 465-2332
Newberry  (803) 321-2125 321-2105  321-2130
Oconee  (864) 638-4150 638-4158  638-4162
Orangeburg   (803) 533-1000 533-1000 533-6130
Pickens (864) 898-5871 898-5895 898-5883
Richland (803) 343-5300   748-4955 748-4900
Saluda (864) 445-8121 445-2521 445-2875
Spartanburg   (864) 596-2544 596-2600 596-2603
Sumter  (803) 436-2115 436-2136 436-2213
Union  (864) 429-1650 429-1618 429-1606
Williamsburg  (803) 354-7059 354-7085 354-6854
York  (803) 684-8526 684-8501  684-8528

 

State Tax Departments

You may also obtain information by contacting the Federation of Tax Administrators at either their website www.taxadmin.org or by telephone at (202) 624-5890.

 

Forms Request System

(Fax on Demand)

(800) 768-3676 (statewide)

(803) 898-5320 (in Columbia)

The South Carolina Department of Revenue forms request system (fax on demand) allows you to call using either your fax telephone or regular touch tone telephone to order single copies of forms. Dial the appropriate telephone number listed above and follow the menu.

If you call from your fax telephone, the system faxes the forms immediately. If you use a regular touch-tone telephone, the system will request a fax number and will fax the forms after normal business hours (11:00p.m. - 8:00a.m.). You also have the option of leaving a message on voice mail and your forms will be mailed to you within three (3) working days.

You may also request the fax menu listing all information available on the forms request system. This menu will be sent to you immediately whether you are using a fax or touchtone telephone. A maximum of six (6) forms may be requested in any one call. The system will make up to three (3) attempts to fax the requested forms.

If you do not have a plain paper fax machine, you must copy your document onto plain paper before submitting to the South Carolina Department of Revenue. We are unable to process returns that are requested on thermal fax paper.

Frequently Requested Forms Document Retrieval Number

 

Form #

Form Name

Document Retrieval Number

SC 1040

Long Form

4003

SC 1040l

Long Form Instructions

4002

SC 1040A

Short Form

4005

SC 1040TT

Tax Tables

4007

SC 1040X

Amended Return

4012

SC 4868

Request for Extension of Time

4019

 

Department of Revenue Telephone Directory         

 (Unless otherwise indicated, all numbers use area code 803)

Director, Burnet Maybank, III

898-5040

Deputy Director, Harry Cooper

898-5140

AUDIT DIVISION

 

Administrator - Robert Anderson

898-5626

Manager, Office Audit

898-5604

Manager, Non-Resident Audit

898-5617

Manager, Appeals & Audit Review

898-5616

Nexus/Discovery Unit

898-5664

Audit Techniques & Technology

898-5681

Estate and Gift?Any Question

898-5756

COLLECTION DIVISION

Administrator - John Sullivan

898-5605

Manager, Central Office Collections

898-5680

DOR CALL CENTER

898-5000

GENERAL COUNSEL & POLICY

 

Administrator ? Rick Handel

898-5132

REGULATORY DIVISION

 

Administrator ? Nick Sipe

898-5140

Bingo Enforcement

898-5162

Alcoholic Beverage Licensing Litigation

898-5140

Alcoholic Beverage License (Beer, Wine & Alcoholic Liquors)

898-5864

 

  

PROCESSING, LICENSING & SUPPORT SERVICES DIVISION

Administrator - Jan Key

898-5700

 

CORPORATE TAX

Corporate Income Tax

898-5705

Delinquents, Notices, And Warrants

898-5705

Debt Match And Reinstatements

898-5705

Technical Corporate, Partnership, Withholding & Fiduciary Questions

898-5786

 

ELECTRONIC SERVICES

Electronic Filing (Individual Income Tax)

898-5560

Electronic Fund Transfers (EFT)?all business taxes except Sales

1-800-476-0311

Electronic Data Interchange (EDI)

1-800-379-9409

Fed/State Electronic Filing (Taxpayers)

898-5560

Fed/State Electronic Filing (Electronic Return Originators ONLY)

898-5560

Magnetic Media Filing (W-2)

898-5821

ScnetFile

898-5709 or

898-5111

SC Telefile

898-5111

Business Tax Telefile (Registration & Filing)

898-5918

Business Tax Telefile (Sales Tax Help Line)

898-5788

Business Tax Telefile (Withholding Tax Help Line)

898-5752

Business Tax Telefile Help Line

898-5111

E-mail --  telefile@sctax.org

INDIVIDUAL INCOME TAX

Automated Refund Inquiries

898-5300

Copies Of Tax Returns Requested By Taxpayers

898-5769

Debt Matches Under The Offset Program

# Shown On Notice To Taxpayer

Fax On Demand

1-800-768-3676

or 898-5320

General Information

898-5709

Individual Declarations Of Estimated Tax

898-5709

Notice Of Adjustments And Information Letters

(Computer Generated)

898-5709

Partnerships

898-5222

Problem Resolution Office Any Problem That Cannot Be Resolved In The Normal Process

898-5873

RAR (Revenue Agent Reports)

898-5842

Refund Inquiries

898-5709

Request For Forms

898-5599

Tax Helpline

Outside Columbia Dialing Area

898-5280 or

(800) 763-1295

Technical Questions ? Individual

898-5838

MISCELLANEOUS TAXES

Admission

898-5743

Deed Recording Fee

898-5743

Electric Power

898-5743

Farm Gas Tax Refunds

898-5743

Hospital Tax (Indigent Care)

898-5443

Motor Fuel Refunds

898-5743

Motor Carrier Property Tax

898-5222

PSC Utility Tax

898-5743

Primary Forest

898-5743

Solid Waste Tax

898-5756

Tobacco

898-5743

SALES/USE AND ACCOMMODATIONS TAX

Accommodations Tax

898-5788

Extensions

898-5800

Failure to File

898-5788

Form St 236 Or Refunds

898-5800

General Questions

898-5788

Local Option Sales Tax

898-5800

Rental Surcharge

898-5800

Technical Questions on Sales, Use, Local Option, Accommodation & Miscellaneous Tax Questions

898-5744

WITHHOLDING

General Information

898-5752

Registration Packet - Fax On Demand

898-5320

Booklet Reorder

898-5793

Address Correction

898-5793

Refund

898-5380

Balance Due

898-5380

Nonresident Withholding

898-5757

Enterprise Zone Act/Rural Development Act Credit

898-5776

BUSINESS TAX REGISTRATION

 

Registration/Database Maintenance

898-5872

Register For Sales, Use, Withholding, Corporate, And Highway Use Taxes

898-5872

PROPERTY DIVISION

 

Administrator ? Sandy Houck

 

898-5478

Business Personal Property & Manufacturing Assessments

898-5490

General Questions

898-5872

Technical Questions

898-5744

TAXPAYER SERVICE CENTERS

Charleston

3 Southpark Circle, Ste. 202, Charleston SC 29407

843-852-3600

Columbia

301 Gervais Street, Columbia SC 29214

803-898-5660

Florence

1452 West Evans Street, Florence SC 29502

843-661-4850

Greenville

211 Century Drive, Ste. 210-B, Greenville SC 29603

864-241-1200

Rock Hill

454 South Anderson Road, Ste. 202, Business and Technology Center, Rock Hill,  SC 29730

803-324-7641


 

 Tax Returns and Other Correspondence should be mailed to:

 

SC Department of Revenue

Post Office Box 125

Columbia SC 29214

 

www.sctax.org



 
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