South Carolina – Bill to End Exemptions

SALT Report 1519 – The South Carolina House of Representatives has approved a bill that would repeal several sales and use tax exemptions. ┬áThe bill, H 4995, also requires the state to lower the overall sales tax rate by the amount of revenue generated, which is estimated to be $12,877,500 per year.
The following items would be no longer be exempt from sales and use tax:
  • Railroad cars and their parts,
  • Vessels and barges of more than 50 tons,
  • ┬áDepreciable assets, used in the operation of a business, pursuant to the sale of the business,
  • Motor vehicles sold to nonresident active duty service members located in South Carolina,
  • Postage purchased by a person selling advertising services such as the mailing of printed advertising material directly to a client’s customers or potential customers,
  • Office supplies and services resold by the Division of General Services of the State Budget and Control Board to departments and agencies of the state government,
  • Machinery, equipment, building materials, and electricity used in the operation of a facility owned by a tax exempt organization that researches and tests the impact of natural hazards such as wind, fire, water, earthquake, and hail,
  • Petroleum asphalt products transported and used outside the state, and
  • Motor vehicle extended service contracts