South Carolina – Durable Medical Equipment Sales Tax Phase-Out

SALT Report 1711 – The South Carolina Department of Revenue issued guidance regarding the sales and use tax phase out for durable medical equipment. Act No. 32 of 2011 will phase-out sales and use tax on the sale of durable medical equipment and related supplies as follows:

  • July 1, 2011 to June 30, 2012 – Sales that occurred during this period were taxed at a rate of 3.5% plus any applicable local sales and use tax,
  • July 1, 2012 to December 31, 2012 – Sales that occur during this period should be taxed at a rate of 1.75% plus any applicable local sales and use tax
  • January 1, 2013 – Sales that occur on or after this date will not be subject to state or local sales and use tax

The Department also addresses the exemption for durable medical equipment and related supplies that meet the following Medicaid and Medicare conditions:

  • The purchase must be paid directly by funds from South Carolina or the United States under the Medicaid or Medicare programs,
  • The state or federal law or regulation that authorizes the payment must prohibit the payment of sales or use tax, and
  • The durable medical equipment and related supplies must be sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in South Carolina

For Further Information:

South Carolina Department of Revenue – Information Letter #12-11