As South Carolina consumers and retailers prepare for August’s annual Sales Tax Holiday, the state Department of Revenue has submitted a Public Draft for comment that features a list of eligible items and frequently asked questions.
This advisory opinion updates the SCDOR’s guidance on the tax-free holiday, which will be Aug. 2-4, and provides examples of exempt and non-exempt items by category.
Comments are due by Wednesday, June 19. A follow-up conference, if requested by comment close date, would take place Friday, June 21 at 10 a.m.
South Carolina’s sales tax holiday is a three–day, 72–hour event every August. It begins at 12:01 a.m. on the first Friday morning in August (Aug. 2 for 2019) and lasts until the following Sunday night (Aug. 4). Prior to July 10 each year, the DOR makes available to the public and retailers a list of articles qualifying for the exemption.
This sales tax holiday allows resident and nonresident shoppers to purchase selected items free of South Carolina’s 6% state sales and use tax – and free of any local sales and use taxes collected by the Department on behalf of local jurisdictions. The tax holiday applies to items specified by statute and includes school supplies used for school assignments, apparel, electronics, and bed and bath items. It applies to eligible items purchased for use by people of any age, to new or used items, and to items of any dollar amount.
Topics in the FAQ include:
- Guidance on sales of qualifying items by out-of-state sellers
- Exemptions that apply to exchanges and rain checks taking place after the sales tax holiday
- If the exemptions apply to layaway payment plans or delivery and service charges
- When the “sale date” of an eligible item is deemed to occur
The sales tax holiday has been in effect since 2000. You can track the draft progress here.