South Carolina – Legislative Updates

SALT Report 3067 – The South Carolina Department of Revenue issued an information letter that summarizes legislative and regulatory changes that were made during the most recent legislative session.  The bulletin states that House Bill 3710 temporarily reenacted the following sales and use tax provisions.

Viscosupplementation Therapies

The Bill suspended the sales and use tax applicable to viscosupplementation therapies. However, no refund or forgiveness of tax may be claimed as a result of this provision.

Respiratory Syncytial Virus Medicines Exemption

Code Section 12-36-2120(28)(a) was amended to provide a sales and use tax exemption for prescription medicines used to prevent respiratory syncytial virus.  The exemption applied to sales made on or after June 18, 2003.

HB 3710 amended the exemption to change the effective date to January 1, 1999.  However, no sales and use tax refunds may be claimed as a result of the change in the effective date.

Private Schools – Use Tax Exemption

A use tax exemption is available for purchases of tangible personal property used in private primary and secondary schools, kindergarten, and early childhood education programs, so long as the school is exempt from income taxes under Internal Revenue Code Section 501(c)(3). The use tax exemption applies to qualified purchases that occurred after 1995; however, a use tax refund is not available to any taxpayer who has purchased items exempted by this provision.

Additionally, this exemption does not apply to purchases that are subject to sales tax. SC Regulation 117-334 provides additional information as to which tax, the sales tax or the use tax, applies to items that are shipped into South Carolina.

For Further Information

South Carolina Department of Revenue – Information Letter 13-5