SALT Report 2381 – The South Carolina Department of Revenue issued an advisory regarding the sales and use tax exemption for certain injectable medications and injectable biologics. Under South Carolina Code Section 12-36-2120(80) a sales and use tax exemption has been provided for injectable medications and injectable biologics so long as certain requirements are satisfied.
However, the advisory warns that for the 2013-2014 fiscal years, the state revenue growth requirements needed for this exemption to be implemented have not been met. Therefore, sales of these injectable medications and biologics will remain subject to the 6% state sales and use tax in addition to any local sales and use tax until at least June 30, 2014.
If the Board of Economic Advisors forecasts a general fund growth of at least 2% at their February 15, 2014 meeting the exemption will be phased in for 2014-2015.
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