Out-of-State Businesses Doing Hurricane Florence Repair Work Not Required to Register or File and Pay South Carolina Taxes

The South Carolina Department of Revenue (DOR) has issued an information letter stating that out-of-state businesses that do not have a presence in, or conduct business in, South Carolina whose services are requested by a business registered in the state or by a state or local government for purposes of performing specified “disaster or emergency-related work” related to Hurricane Florence are exempt from state and local business registration and tax payment and filings during the “disaster period.”

South Carolina was declared a disaster area on September 16, 2018. The disaster period begins within 10 days of a disaster declaration and ends 60 days after the declared period ends, unless a longer period is authorized. The exemption applies only to out-of-state businesses repairing any of the following:

  • Communications networks
  • Electric generation, transmissions and distribution systems, and gas distribution systems
  • Water pipelines
  • Public roads and bridges
  • Facilities related to the above

The exemptions do not apply to out-of-state businesses performing disaster work related to the repair, renovation or building of any other commercial property or residential property. Note that the registration and tax exemptions apply only to out-of-state businesses.

Out-of-state businesses are not exempt from transaction taxes and fees including, but not limited to, fuel taxes and fuel user fees or sales and use taxes on materials or services subject to sales and use tax, accommodations taxes, car rental taxes or fees that the out-of-state affiliated business or out-of-state employee purchases for use or consumption in South Carolina during the disaster period, unless the taxes or fees are otherwise exempt during a disaster period.

The out-of-state business must notify the South Carolina DOR that it is in the state for purposes of responding to the disaster caused by Hurricane Florence. The notification must include the business name, state of domicile, principal business address, federal tax identification number, date of entry, and contact information. The notification may be emailed to [email protected] or mailed to:

South Carolina Department of Revenue
Attn: Registration Unit – Hurricane Florence
PO Box 125
Columbia, SC 29214-0850

A business or employee that remains in South Carolina after the disaster period becomes subject to South Carolina’s normal standards for establishing presence, residency or doing business and the resulting requirements. (Information Letter 18-14, South Carolina Department of Revenue, October 3, 2018)

Posted on October 29, 2018