South Carolina

Email:mccormj@dor.state.sc.us

1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

   See enclosed copy of SC Information Letter #89-12 for a list of the non-profit Organizations that are entitled to the exemption.

   1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

   Yes

   1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

   See enclosed copies of SC Revenue Procedure #89-5 and SC Information Letter #89-12.

 

2. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

   South Carolina does not exempt specific products for fundraising purposes; however, sales by certain non-profit organizations are exempt. See Q1.

   2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

   Yes

   2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

   N/A

 

3. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

   No limitation, except that the net proceeds must be used exclusively for exempt purposes and no benefit may inure to any individual.

 

4. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

   The procedure can be found in SC Revenue Procedure #89-5

 

5. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

   N/A

 

6. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

   The fundraising group (e.g., school, PTA, church)

   The South Carolina sales tax is imposed upon the person engaged in the business of selling tangible personal property at retail (the retailer). See Code Section 12-36-910.

   The South Carolina use tax is imposed upon the person using, consuming, or storing the tangible personal property purchased at retail. The seller, if nexus exist, can be required to collect the use tax from the purchaser.

 

7. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

   Price paid by consumer to fundraising group

   The South Carolina sales tax is imposed upon the "gross proceeds of sales." See Code Sections 12-36-910 and 12-36-90.

   The South Carolina use tax is imposed upon the "sales price". See Code Sections 12-36-1310 and 12-36-130.

 

8. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.

SC Revenue Ruling #98-16 is available through the SC DOR web site at http://www.sctax.org under Tax Policy (Adv.Opinions).