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A South Carolina bill specifies that owning or using a distribution facility is not considered in determining nexus qualification. “Distribution facility” is defined as an establishment where shipments of tangible personal property are processed for delivery to customers. However, the term does not include an establishment, in certain circumstances, where retail sales of tangible personal property are made to customers on more than twelve days a year. (South Carolina General Assembly, HB 3006, June 10, 2005).


Clothing, clothing accessories, school supplies, footwear, computers and peripherals, bath wash clothes, blankets, linens, shower curtains. See Details


South Carolina recently enacted legislation to further define service address and postpaid calling service. The legislation added language to the definition of service address to specify that a sale of postpaid calling services is sourced to the origination point of the telecommunications signal as first identified by either (1) the seller’s telecommunications system, or (2) information received by the seller from its service provider, if the system used to transport such signals is not that of the seller. The state defined postpaid calling service as the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number that is not associated with the origination or termination of the telecommunications service. Also included in the legislation was a change of the maximum business license tax levied by a municipality for telecommunications services. This tax was increased to 1% of the gross income derived from the retail sale of such services. Lastly, the legislation clarified the provision related to public rights of way franchise or consent fees and administrative fees. (2003 SC H 3530, South Carolina, effective January 13, 2005)


South Carolina has released a revenue ruling detailing the taxability of individuals renting out rooms in their vacation homes, second homes, and places of abode with less than six sleeping rooms. A sales tax liability is incurred if a person rents out their home with less than 6 sleeping rooms while not living in it themselves during the rental time if the individual renting the room does so for less than 90 days. However, if a person rents out their home for 90 or more consecutive days to the same individual than no sales tax liability is incurred. Also, an individual can rent out rooms in their home to guests as in a ‘bed and breakfast’ business while still living in their home and not incur a sales tax liability. See Revenue Ruling 04-12, May 24, 2004 for complete details. (Revenue Ruling 04-12, May 24, 2004)


South Carolina’s annual sales tax holiday will be held from Friday, August 6 through Sunday, August 8, 2004. Items included in the exemption include clothing, clothing accessories, footwear, school supplies, computers and computer equipment and software. To qualify for the exemption items ordered online or through mail-order must be ordered and paid for by the customer and be ready for immediate shipment during the holiday period. The exemption does not apply to jewelry, cosmetics, rentals of clothing or footwear or items used in a business. (South Carolina Information Letter #04-10)



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