SC INFORMATION LETTER #90-25
TO: Vicki Jinnette Ringer
Public Information Director
FROM: John P. McCormack, Manager
Tax Policy Department
DATE: July 11, 1990
SUBJECT: Sales and Use Tax Recodification
REFERENCE: Chapter 35, Title 12, S.C. Code of Laws (1976, Supp. 1989)
Chapter 36, Title 12, S.C. Code of Laws
(Enacted June 1990)
AUTHORITY: S.C. Code Section 12-3-140 (1976)
SC Revenue Procedure #87-3
SCOPE: An Information Letter is a temporary document
issued for the purpose of disseminating general
tax information and to respond to technical
questions from within the Commission which are
not related to a specific set of facts.
Effective July 1, 1990, the sales and use tax law has been rewritten
(recodified). The law has not been changed in any substantive way;
however, it has been greatly simplified by drastically reducing the number
of words, updating the language and reorganizing and combining sections in
a logical manner.
To repeat, this is not a new tax law, it is merely a simplification of the
sales and use tax law, as amended through the 1990 legislative session.
Legislation enacted during the 1990 session, which has been made a part of
this recodification bill, includes changes to the accommodations tax (See
SC Information Letter #90-10) and the retail license tax (See SC
Information Letter #90-24).
Attached is an outline of the recodified law containing a cross-reference
of the old code sections (Chapter 35, Title 12) and new code sections
(Chapter 36, Title 12), with a brief explanation of each section's
content.
If there are any questions concerning this document, please telephone John
McCormack or Jerry Knight at 803-737-4440.
RECODIFIED SALES AND USE TAX LAW
CHAPTER 36, TITLE 12
Article 1 - Definitions
Recodified Section # Previous Section # Section's Content
12-36-5 N/A Reads "This chapter
may be cited as the
South Carolina Sales
and Use Tax Act".
12-36-10 12-35-10 Reads "The words,
terms, and phrases
defined in this
article have the
meaning provided,
except when the
context clearly
indicates a different
meaning".
12-36-20 12-35-20 Defines "business".
12-36-30 12-35-60 Defines "person".
12-36-40 12-35-150 Defines "taxpayer".
12-36-50 12-35-50 Defines "in this
State" and "in the
State".
12-36-60 12-35-140 Defines "tangible
personal property".
12-36-70 12-35-90 Defines "retailer"
12-35-95 and "seller".
12-35-830
12-36-80 12-35-80 Defines "retailer
maintaining a place of
business in this
State."
12-36-90 12-35-30 Defines "gross
12-35-40 proceeds of sales"
and eliminates
"gross receipts".
-2-
Recodified Section # Previous Section # Section's Content
12-36-100 12-35-70 Defines "sale" and
12-35-100 "purchase".
12-36-110 12-35-110 Defines "sale at
12-35-125 retail" and "retail
sale".
12-36-120 12-35-170 Defines "wholesale
sale" and "sale at
wholesale".
12-36-130 12-35-120 Defines "sales
price".
12-36-140 12-35-130 Defines "storage"
12-35-160 and "use".
12-35-165
12-36-150 N.A. Defines "transient
construction
property".
Article 5 - Retail License
12-36-510 12-35-320 Who is required to
12-35-1127 obtain a retail
license and the tax
amounts.
12-36-520 12-35-330 Requirement to make
a cash deposit or
post bond.
12-36-530 12-35-340 Requirement to
12-35-390 return license upon
closing or selling
a business; and
lien for unpaid
taxes.
12-36-540 12-35-350 Information to be
shown on
application and
provision that a
license is needed
for each location.
12-36-550 12-35-360 Validity of
12-35-370 license; display of
12-35-380 license; and
license not
assignable or
transferable.
-3-
Article 9 - Sales Tax
Recodified Section # Previous Section # Section's Content
12-36-910 12-35-510 Combined imposi-
12-35-515 tions of the sales
12-35-1110 tax on sales of
12-35-1130 tangible property,
12-35-1140 laundry services,
12-35-1150 electricity,
communications, and
property used by
its manufacturer.
12-36-920 12-35-515 Imposition of sales
12-35-710 tax on accommoda-
12-35-1120 tions.
12-35-1125
12-36-930 12-35-555 Sales tax on sales
of motor vehicles,
trailers, etc. to
residents of other
states.
12-36-940 12-35-610 Amounts which may
12-35-620 be added to sales
price and provision
that seller still
owes the tax
whether or not the
tax is collected
from the purchaser.
12-36-950 12-35-630 Presumption that
all gross proceeds
are subject to tax,
unless shown
otherwise.
-4-
Article 13 - Use Tax
Recodified Section # Previous Section # Section's Content
12-36-1310 12-35-810(para 1) Combined all sections which
12-35-515 impose the use tax and the
12-35-815 provision which allows for
12-35-1110 a credit for sales tax due
12-35-1130 and paid in another state.
12-35-1140
12-35-1150
12-36-1320 12-35-810 Imposition of use tax on
(paras 2 & 3) "transient construction
property".
12-36-1330 12-35-850 Liability for the use tax
and effect of receipt
showing tax paid.
12-36-1340 12-35-890 Nonresident retailers who
must collect and remit
the use tax.
12-36-1350 12-35-860 Use tax must be stated
12-35-870 separately and seller may
not advertise that the tax
will be absorbed, added to
selling price or refunded.
"Debt owed by the seller to
this State".
12-36-1360 12-35-900 Purchaser must file a
return and remit tax if not
charged by seller.
12-36-1370 12-35-930 Presumption that property
was purchased for storage,
use or consumption in this
State.
Article 17 - Casual Excise Tax
12-36-1710 12-35-1710 Imposition of tax and
exclusions.
12-36-1720 12-35-1720 Applies only to the last
sale.
-5-
Article 21 - Maximum Tax and Exemptions
Recodified Section # Previous Section # Section's Content
12-36-2110 12-35-516 Maximum tax (cap) on sales
12-35-517 of motor vehicles, boats,
12-35-518 planes, etc. Also pro-
12-35-519 visions concerning caps
on leases and certain
purchases by religious
organizations.
12-36-2120 12-35-550 Exemptions from the sales
(Exemptions) and use taxes.
12-36-2120(1) 12-35-550(1) Transactions prohibited
from being taxed by
federal or state law or
the federal or state
constitutions.
12-36-2120(2) 12-35-550(42) Sales to the federal
government.
12-36-2120(3) 12-35-550(2)&(29) Textbooks, etc. sold to
schools, and books, etc.
sold to public libraries.
12-36-2120(4) 12-35-550(3) Sales of livestock.
12-36-2120(5) 12-35-550(4) Feed used for production
and maintenance of poultry
and livestock.
12-36-2120(6) 12-35-550(5) Insecticides, etc. for
production of farm
products or cultivation of
poultry or livestock
feed.
12-36-2120(7) 12-35-550(6) Containers and labels for
agricultural products,
turpentine, etc.
12-36-2120(8) 12-35-550(7) Newspapers, the Bible and
the Department of
Agriculture's Market
Bulletin.
12-36-2120(9) 12-35-550(8) Fuel used by
manufacturers, electric
power companies and
transportation companies.
-6-
Recodified Section # Previous Section # Section's Content
12-36-2120(10) 12-35-550(9)&(45) Meals sold to school
children and to the
elderly and disabled.
12-36-2120(11) 12-35-550(10) Toll charges, telegraph
messages and access
charges.
12-36-2120(12) 12-35-550(11) & Water sold by regulated
(28) utilities and nonprofit
organizations.
12-36-2120(13) 12-35-550(13) Fuel, lubricants and
supplies used or consumed
aboard ships.
12-36-2120(14) 12-35-550(14) Packaging and containers
used incident to the sale
and delivery of tangible
personal property.
12-36-2120(15) 12-35-550(16) & (35) Fuel used by farmers and
commercial fishermen.
Also, sales of gasoline,
fuel ethanol blends and
certain other fuels.
12-36-2120(16)& 12-35-550(17) Machine exemptions for
(17) farmers, manufacturers,
processors, etc.
12-36-2120(18) 12-35-550(18) Fuel used to cure
agricultural products.
12-36-2120(19) 12-35-550(19) Electricity used in
manufacturing.
12-36-2120(20), 12-35-550(20) Railcars, locomotives,
(21) & (22) vessels, barges and
materials necessary to
assemble missiles, etc.
12-36-2120(23) 12-35-550(21) Products of the farm sold
by the producer thereof in
the original state of
production.
12-36-2120(24) 12-35-550(23) Machinery and supplies
sold to laundries and dry
cleaners.
12-36-2120(25) 12-35-550(25) Sales of motor vehicles
and motorcycles to
military personnel.
-7-
Recodified Section # Previous Section # Section's Content
12-36-2120(26) 12-35-550(26)& Supplies, equipment and
(27) electricity sold to radio
and tv stations.
12-36-2120(27) 12-35-550(30) Plants and animals sold to
zoos, etc.
12-36-2120(28) 12-35-550(31) Medicines and prosthetic
devices sold by
prescription and dental
prosthetic devices.
12-36-2120(29) N.A. Reserved.
12-36-2120(30) 12-35-550(33) Sales by General Services
Division.
12-36-2120(31) 12-35-550(34) Vacation time shares.
12-36-2120(32) 12-35-550(36) Natural and LP gas used in
poultry production.
12-36-2120(33) 12-35-550(37) Electricity, natural gas,
etc. used for residential
purposes.
12-36-2120(34) 12-35-550(38) 35% of gross proceeds of
modular homes.
12-36-2120(35) 12-35-550(39) Film sold or rented to
theatres.
12-36-2120(36) 12-35-550(40) Sales of property
delivered out of state.
12-36-2120(37) 12-35-550(41) Paving asphalt used
out-of-state.
12-36-2120(38) 12-35-550(43) Hearing aids.
12-36-2120(39) 12-35-550(44) Festival concession sales.
12-36-2120(40) 12-35-550(46) Containers and chassis
sold to shipping
companies.
12-36-2120(41) 12-35-550(48) Sales by nonprofit
organizations.
12-36-2120(42) 12-35-550(47) Sale of an entire
business.
12-36-2130 12-35-820 Exemptions from the use
(Exemptions) tax.
-8-
Recodified Section # Previous Section # Section's Content
12-36-2130(1) 12-35-820(1) Property subject to the
sales tax and on which the
sales tax has been paid.
12-35-2130(2) 12-35-820(3) Tangible personal property
or exhibition rentals
purchased or leased by
museums.
Article 25 - General Provisions
12-36-2510 12-35-1240 Provision for "direct pay"
certificate.
12-36-2520 12-35-1160 Shifting of tax liability
to purchaser for property
delivered out-of-state.
12-36-2530 12-35-1545 Authority for Commission
to require retailers to
provide copies of invoices
for sales of $500 or more
where delivery is made
outside the State.
12-36-2540 12-35-1250 Recordkeeping
requirements.
12-36-2550 12-35-1360 Offsetting of overpayments
and underpayments.
12-36-2560 12-35-540 Installment sales.
12-36-2570 12-35-570 Filing of returns and
12-35-880 payment of taxes.
12-35-890
12-35-900
12-36-2580 12-35-600 Filing of quarterly
12-35-519 returns when tax liability
does not exceed $100.
12-36-2590 12-35-910 Authority for Commission
to require filing of
returns and payment of
taxes other than monthly
periods.
12-36-2600 12-35-580 Estimated monthly taxes.
12-36-2610 12-35-1230 Discount for timely filing
and payment of the tax.
-9-
Recodified Section # Previous Section # Section's Content
12-36-2620 ÄÄÄÄÄÄÄ Explains makeup and uses
of the sales tax; use tax;
and sales tax on
"additional guest charges"
(2% accommodations tax).
12-36-2630 ÄÄÄÄÄÄÄ Explains makeup and uses
of the seven percent sales
tax on accommodations.
12-36-2640 Explains makeup and uses
of the casual excise tax.
12-36-2650 12-35-510 Taxes imposed by Chapter
36 are in addition to all
other taxes, licenses, and
charges.
-10-
|
