The South Carolina Department of Revenue (SCDOR) has announced changes concerning the state’s Maximum Sales & Use Tax (Max Tax). Here are the key takeaways:

  • Max Tax is a specialized form of Sales Tax charged at a rate of 5%, but it is capped at a maximum of $500. This tax specifically applies to items such as cars, aircraft, and boats. Retailers handling items subject to Max Tax are responsible for collecting, paying, and filing Max Tax returns.
  • Due to a ruling from the South Carolina Court of Appeals in April 2023, the definition of “motor vehicle” has been broadened. This means several more items are now under the purview of Max Tax: Golf carts
    • ATVs (all-terrain vehicles)
    • UTVs (utility task vehicles)
    • Dirt bikes
    • Legend race cars
    • The inclusion of these items stems from the case, Jack’s Custom Cycles, Inc. vs. SCDOR, where it was determined that specific off-road vehicles should be categorized under Max Tax instead of the full 6% Sales Tax.
  • From December 1, 2023, all Max Tax returns must be filed online via MyDORWAY, SCDOR’s dedicated online tax portal. Important notes for filers:
    • Sales must be reported on an item-by-item basis, rather than a consolidated total.
    • MyDORWAY will automatically calculate all taxes owed after the sales price of each Max Tax item is entered.
    • Any payments made to the South Carolina Department of Motor Vehicles (SCDMV) need to be reported as well.
  • Retailers selling the newly included items (e.g., ATVs, UTVs, dirt bikes, etc.) should reach out to SCDOR at for guidance on account updates. Current Max Tax filers needing a MyDORWAY account can sign up at

For comprehensive details about Max Tax and its updates, consult Revenue Ruling 23-3 or visit​maxtax.

Stay updated and ensure compliance with these changes if they apply to your business.