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South Carolina: Data Center Exemption Quid Pro Quo


 South Carolina: Want that sales tax exemption? Start hiring.

In June of 2012, South Carolina Department of Revenue released an information notice regarding the data center sales tax exemption, outlining investment requirements, job requirements, and what happens to companies that fail to meet those investment and job requirements. The exemption is not a give-away: it is intended to spark growth (investment and jobs) in the state.

The moral of the information release is simple: failure to meet investment and job requirements may result in an assessment of "any state or local sales or use tax due on items purchased." With that assessment would come applicable penalties and interest.

The onus to prove that all requirements have been met falls on the taxpayer, not the state: "Like other records maintained for tax purposes, the records must be readily available for inspection by the Department."

How does your business manage sales tax exemptions, in South Carolina and elsewhere? Have you considered an automated sales tax solution.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.