South Carolina Sales Tax Holiday
- Jun 26, 2012 | Susan McLain
South Carolina has announced the dates of an annual South Carolina Sales Tax Holiday for 2012.
According to SC Information Letter #12-7:
Code Section 12-36-2120(57) provides for an annual three-day sales tax holiday for sales taxing place from 12:01 a.m. on the first Friday in August and ending at midnight on the following Sunday. Accordingly, the 2012 sales tax holiday weekend will begin Friday, August 3, 2012 at 12:01 a.m. and end Sunday, August 5, 2012 at midnight. [Bold emphasis added.]
- Clothing accessories such as hats, scarves, hosiery and handbags;
- School supplies such as pens, pencils, paper, binders, notebooks, book bags, lunch boxes, calculators;
- Computers, printers and printer supplies as well as computer software;
- Bath wash clothes, blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows and pillow cases.
Non-Exempt Items include:
- Jewelry, cosmetics, eyewear, wallets, watches;
- Rented or leased items.
Computer parts are not exempt unless purchased as part of a whole computer.
Mail Order, Internet Purchases, Delivery and Alterations
According to South Carolina Revenue Ruling 10-8, the sales tax holiday applies to mail order or Internet purchases, provided the item qualifies as exempt. As long as the item qualifies for an exemption under the sales tax holiday rules, “…then all delivery charges associated with that sale are exempt,” and “…all alteration charges associated with that sale are exempt.”
Rain Checks, Lay-Away and Exchanges
Rain checks do not quality if the item is actually purchased after the sales tax holiday ends. Lay-away does not qualify, “[t]he exemption provision specifically states that the exemption does not apply to ‘a sale of an item placed on lay-away or similar deferred payment and delivery plan however described.’”
For exchanges, the regulation states:
If a customer purchases an item before the ‘sales tax holiday’ and later exchanges the item during the ‘sales tax holiday’ for the same eligible item (different size, different color, etc.) or receives credit on the purchase of a different item, no additional tax will be due if the item received in the exchange is one that qualifies for the exemption.
Retailers Must Participate
Retailers cannot elect to not participate in the sales tax holiday. The South Carolina Department of Revenue has authority to revoke any and all licenses held by a retailer if the retailers charges sales taxes that are not legally due.
The Department is required to publish and make available to the public and retailers “…a list of those articles qualifying for the exemption allowed by this item.”