SC Sales Tax Rate Changes

Below is the notice from the South Carolina Department of Revenue about the rate changes for certain counties in 2017.

Effective March 1, 2017

In addition to the current state and local option sales tax rate, Darlington and Kershaw counties will impose a new 1% Education Capital Improvement Tax. Note the new sales and use tax rate total for each county:

County/Code                   New Local Tax               Total State and Local Rate Effective March 1

Darlington 1%                      Education Capital                  Improvement Tax 8% General Tax Rate
5161                                                                                      9% Accommodations Tax Rate

Effective March 1, 2017 for Darlington County
• 1% School District Tax will end after February 28, 2017.
• 1% Education Capital Improvement Tax is in addition to 1% Local Option Tax.
• Sales of unprepared food will be exempt from Darlington’s new 1% Education Capital Improvement Tax. This exemption applies to everyone, not just people using food stamps.
• Darlington County’s Education Capital Improvement Tax will be reported under code “5161” on page 3 of the Form ST-389 Schedule for Local Taxes.

Effective March 1, 2017 for Kershaw County
• 1% Education Capital Improvement Tax is in addition to 1% Local Option Tax.
• Sales of unprepared food will be exempt from Kershaw’s new 1% Education Capital Improvement Tax. This exemption applies to everyone, not just people using food stamps.
• Kershaw County’s Education Capital Improvement Tax will be reported under code “5281” on page 3 of the Form ST-389 Schedule for Local Taxes.

Effective May 1, 2017

In addition to the current state and local option sales tax rate, each of the following counties will impose a new 1% Capital Projects Tax. Note the new sales and use tax rate total for each county:

Effective May 1, 2017 for Allendale, Barnwell, Greenwood, Horry, McCormick, and Williamsburg Counties

• Sales of unprepared food will be exempt from new 1% Capital Projects Tax. This exemption applies to everyone, not just people using food stamps.
• Each county will report its respective Capital Projects Tax on page 1 of the Form ST-389 Schedule for Local Taxes.

Effective May 1, 2017 for Newberry County

• Newberry County will reimpose its 1% Capital Projects Tax.
• Sales of unprepared food will be exempt from Newberry’s reimposed 1% Capital Projects Tax. This exemption applies to everyone, not just people using food stamps.

Effective May 1, 2017 for Union County
Union County will impose a new 1% Local Option Tax. Note the new sales and use tax rate total:

Effective May 1, 2017 for Charleston County
In addition to the current state and local sales tax rate, Charleston County will increase the Transportation Tax from 0.5% to 1%. Note the new sales and use tax rate total:

Note:
Construction contractors who enter into construction contracts which are entered into, or for which a written bid is submitted, before the effective date of a new local tax which increases the combined state and local sales and use tax rate may apply for an exemption from the new local sales and use tax rate. This special exemption certificate applies only if the contractor buys building materials used by the contractor on a construction contract in a county for which an exemption certificate has been issued. Contractors wishing to apply for the local sales and use tax exemption should complete the Form ST-10C and submit it to South Carolina Department of Revenue.

If you have questions, call 1-844-898-8542