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S.A.L.T. Select Developments: South Carolina

Baker Donelson's S.A.L.T. Select Developments will identify important state and local tax developments from South Carolina.

Overview

State and local taxes impact almost every taxpayer. S.A.L.T developments in any one jurisdiction can be frequent and sometimes confusing. Where multiple jurisdictions are involved, staying current with state and local tax developments can be overwhelming for any taxpayer.

To assist you with staying current on a periodic basis, Baker Donelson's S.A.L.T. Select Developments will identify one or more recent state and local tax developments from South Carolina.

October 2019

2019 Tax Legislative Update: On September 10, 2019, the South Carolina Department of Revenue published Information Letter #19-23 which provides a Legislative Update of significant changes in tax and regulatory laws enacted during the 2019 Legislative Session. This Update is divided into categories which include (among others) income taxes and corporate license fees; property taxes and fees in lieu of property taxes; sales and use taxes; as well as miscellaneous matters including administrative and procedural topics. This 52-page Update is intended by the Department to be a summary of the main points of this legislation, but is not intended to be an interpretation by the Department. The Department refers readers to the full text of the legislation for specific details and requirements. Nevertheless, this Update provides a central location at which a summary of significant changes in tax laws can be efficiently reviewed. Refer to Information Letter #19-23 for more details.

September 2019

Sales Tax: In August, the South Carolina Department of Revenue published for public comment a draft Revenue Ruling which expands on an earlier published Ruling for the purposes of addressing whether this State's sales tax applies to the Universal Service Fund Surcharge, the Dual Party Relay Charge and the 911 Service Charge billed to customers by telephone service providers. While the commentary period for this draft Ruling closed on August 29, 2019, the draft as currently prepared indicates that the Universal Service Fund Surcharge billed by telephone service providers would be subject to the sales and use tax with certain exceptions, while the Dual Party Relay Charge and the 911 Service Charge would not be subject to the tax. Refer to this draft Ruling for more guidance relative to the factual background and reasoning for these conclusions.

Refer to Information Letter #19-18 for more details.

August 2019

Sales Tax: In a reversal of previous Information Letter #19-18, South Carolina Department of Revenue issued Information Letter #19-21 on August 1, 2019 advising that the sales and use tax exemption for certain energy efficient manufactured homes in South Carolina would not terminate on July 1, 2019, but rather would continue pursuant to legislative action that extends the exemption until June 30, 2020. The Legislature had previously extended the nonrefundable income tax credit through June 30, 2020 for any person purchasing such a manufactured home from a licensed South Carolina dealership. Refer to Information Letter #19-21 for more details: IL19-21. Refer to Information Letter #19-18 for more details.

July 2019

Sales Tax: Beginning July 2, 2019, and as addressed by the South Carolina Department of Revenue in Information Letter #19-18, sales of manufactured homes meeting or exceeding the energy efficiency requirements or designations of the U.S. Environmental Protection Agency and Department of Energy are no longer exempt and will be subject to the sales and use tax in South Carolina. This previously existing exemption was not extended by the 2019 Legislative Session in South Carolina, even though the Legislature did extend for one year through June 30, 2020 a nonrefundable income tax credit to any person purchasing such a manufactured home from a licensed South Carolina dealership.

Refer to Information Letter #19-18 for more details.

June 2019

Gas Tax: On June 6, 2019, the South Carolina Department of Revenue issued a News Release alerting taxpayers that effective July 1, 2019 through June 30, 2020, the motor fuel user fee would increase from 20¢ per gallon to 22¢ cents per gallon, with increases thereafter effective July 1, 2020, July 1, 2021 and July 1, 2022. The foregoing increases are pursuant to legislation enacted in 2017, and such legislation is reviewed in the Department's Information Letter #17-8, which can be found here.

For more information about state and local tax developments in South Carolina, please contact:

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