The South Carolina Department of Revenue (DOR) has issued a revenue ruling regarding the taxability of various retailers’ fees. Per the state’s guidance, separately stated retailers’ fees such as an “inflation fee,” “convenience fee,” “non-cash adjustment fee” or similar types of fees charged as part of a retail sale of tangible personal property are includable in “gross proceeds of sales” or “sales price” and are therefore subject to sales and use tax, unless the retail sale is otherwise exempt. Many retailers have begun adding these types of fees to retail sales over the course of the last several years in order to help recover increased operating costs or credit card processing costs. These fees may be a flat fee or based on a percentage of the sales price. The DOR provides several examples. For example, if a restaurant charges a customer $15 for a meal and a $1.50 inflation fee, sales tax should be calculated on the $16.50 total charge. Retailers charging these types of fees in South Carolina will want to account for this tax treatment in their selling systems. (Revenue Ruling 22-10, South Carolina Department of Revenue, October 20, 2022)