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South Carolina Sales Tax Holiday

  • Jul 30, 2012 | Susan McLain

The South Carolina sales tax holiday begins at 12:01 a.m. on Friday, August 3, 2012 and ends at midnight on Sunday, August 5, 2012.

South Carolina exempts both state and local sales tax during the holiday.  All retailers are required to participate. Any taxes passed on to the customer that are not legally due may result in the retailer’s license being revoked.

Frequently asked questions include:

Does the state provide a list of exempt items? Yes, view the list here.

Do online purchases qualify? “Yes, provided the item sold is one qualifying for the exemption and the sale occurs during the three days of the ‘sales tax holiday’…." However, the item must be available for immediate shipment during the holiday, even if it is delivered after the holiday.

Are alterations included? “If an item of clothing qualifies for the exemption under the 'sales tax holiday,' then all alteration charges associated with that sale are exempt.”

Can we use a rain check during the holiday? Yes, rain checks may be honored during the holiday and if the item purchased qualifies for the sales tax exemption, the purchase will be exempt. Rain checks obtained during the holiday but used after it is over will not be sales tax-exempt  purchases.

Are layaway items exempt? “No.” South Carolina is one of the few states that specifically states that the exemption will not apply to layaway items. However, the following applies to “90 days same as cash” purchases:

90 days same as cash qualify for the sales tax holiday exemption …provided the contract obligating the buyer to pay is signed during the "sales tax holiday" and delivery of the item is made during the "sales tax holiday" or the retailer accepts the order during the "sales tax holiday" for immediate shipment, even if delivery is made after the "sales tax holiday."

Retailers should report exempt sales per the following instructions:

With respect to the return filed for August, all sales, whether or not exempt from the tax, should be reported on Line 1 of the Worksheet on the back of the sales and use tax return. Sales of items exempt from the tax during the "sales tax holiday" should be listed as one of the deductions in the space provided on Line 4 of the Worksheet on Form ST-3. On Forms ST-388 and ST-403, the deduction for sales exempt under the "sales tax holiday" should be listed as "Sales Tax Holiday Exemption" as one of the deductions on Line 4 of the Worksheet. [Links added.]

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”