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Business Tax Guide
If you wish to print sections of this document, you may do so by selecting what you want to print, click on "File", "Print", and click on "Selection." The entire document may be printed by clicking on "File", "Print," "All."
This publication may not be relied upon as a substitute for obtaining professional advice and researching original sources of authority. Nothing in this publication supercedes, alters, or otherwise changes provisions of the South Carolina Code, regulations or department advisory opinions.
The South Carolina Department of Revenue would appreciate your comments or notifications of any errors. Such remarks should be sent to : Taxpayer Education Coordinator, Department of Revenue, PO Box 125, Columbia, SC 29214 or E-Mail at firstname.lastname@example.com
Taxpayers' Bill of Rights
Electronic Filing Requirements
About Forms
Electronic Funds Transfer
Why Most New Businesses Fail
Forms of Business Organization
Record Keeping
Establishing Good Practices & Procedures
Record Retention
Postage Rate Information
Sales & Use Tax/The Basics
Accommodations Tax
Casual Excise Tax
$300 Maximum Tax
Manufactured Housing
Local Option Sales and Use Tax
Exemptions and Exclusions
Reporting and Paying Sales/Use Tax
Discounts for Timely Payments
Cash Deposit or Bonds Required
Sales Tax Holiday
Receive E-Mail Notification on updates
Forms to use for Sales/Use Tax
Withholding Taxes
How to Calculate Withholding Payments
Making Withholding Payments
NonResident Withholding Agents
Forms to use for Withholding Tax
Other SC Taxes You May Need to File
About W-2s
Property Tax
Assessment Ratios
Business Personal Property
Property Tax Exemptions
Fee In Lei of Property Taxes
Deed Recording Fees
Alcoholic Beverages
Beer and Wine Tax
Mini Bottle License
Admissions Tax
Reporting/Paying Admissions Tax
Bingo Tax
Reporting and Paying Bingo Tax
Tobacco Products Tax
Electric Power Tax
Estate Tax
Forest Renewal Tax
Highway Use Tax
Dry Cleaning Facility
Low Level Radioactive Waste Tax
Solid Waste Excise Tax
Motor Fuel Tax
Corporate Income Taxes
Job Development Credits
Job Retraining Credits
Corporate Filing Requirements
Corporate Tax Forms
County Classifications
Limited Liability Companies and Partnerships
Individual Income Tax
Additions to Income
Deductions from Income
Income Tax Rates
Income Tax Credits
Estimated Tax Payments
Part Year Residents
Extensions to File
Individual Income Tax Electronic Filing
Online State and Federal Agencies Offering Assistance
Local Government Regulations
Small Business Development Centers
Occupational and Professional Licensing
County Auditors Assessors and Treasurers
State Tax Departments
SC Dept. of Rev. Forms Request System
Where to get help at the Department of Revenue
South Carolina Department of Revenue
Post Office Box 125 ? 301 Gervais Street ? Columbia SC 29214
Congratulations on opening your business! Businesses, both large and small, are vital to South Carolina's long-range economic stability. We believe that by helping businesses succeed, we ultimately aid in the state's prosperity.
If you've completed the Business Tax Application, form SCTC-111, you've already taken the first step and you've received your new license either in person or through the mail.
If you personally received your business license from one of our Taxpayer Service Centers, you've already made contact with a great resource ? our staff of professionals. If you have questions or concerns please feel free to contact any of our Taxpayer Service Centers or visit our website at www.sctax.org.
The Department has five Taxpayer Service Centers across the state. See the Telephone Directory in this publication for the addresses, telephone and fax numbers for each location. We also have staff available at satellite locations at scheduled times.
If you received your license at our Business One Stop (DORBOS) or by mail, this business tax guide is intended to give you as much information as you need. However, please feel free to call any of our Taxpayer Service Centers or our main office in Columbia, should you have additional questions or concerns.
The following are some of the ways you can help us serve you better:
My South Carolina Retail License # My Federal ID #
My South Carolina Business/Corporate Tax # Other #
My South Carolina Withholding #
I MUST File: __ MONTHLY ___ QUARTERLY ____ ANNUALLY
Did you know you might be able to file electronically?
There are five programs to help you:
1. Business Tax TeleFile for Reporting Zero Sales & Withholding Taxes
Sales tax filers who have zero gross proceeds of sales, rentals, use tax, and withdrawals for own use for the filing period, may use our Business Tax TeleFile for Sales & Use Taxes. Withholding tax filers who have a zero payment amount due with the return for the filing period may also use the Business Tax TeleFile System for Withholding Taxes.
To start the process, please dial (803) 898-5918 and follow the recorded instructions. First time users are required to register on the system prior to filling their first return. The process for Sales Tax filers takes less than 5 minutes to complete. It takes about 10 minutes to complete the process for Withholding Tax filers.
If assistance is needed with sales tax related questions, you can contact the DOR Sales Tax Help Line at (803) 898-5788. For assistance with withholding tax related questions, please contact the DOR Withholding Tax Help Line at (803-898-5752.
For all TeleFile support issues, you should contact the Business Tax TeleFile Help Line at (803) 898-5111 or contact us by e-mail at email@example.com.
2. Electronic Funds Transfer
Businesses that have paid $15,000 or more during any one filing period during the past year are required to pay electronically. Taxpayers with less than $15,000 in tax due during a filing period may participate voluntarily with the Electronic Funds Transfer (EFT) Program. For further information call 1-800-476-0311.
Businesses who participate in the Electronic Funds Transfer will need to use the following codes to identify the type of tax they are filing:
911 User's Fee
Electric Power
Indigent Care
Alcohol Case Additional
Alcoholic Case Retail
Alcoholic Case Wholesale
Alcoholic Liquor Excise
Alcoholic Liquor Surtax
Motor Fuel:
Environmental Impact
Inspection Fee
Special Fuels
Radioactive License Fee
Beer Excise
Tobacco Products:
Commercial Nuclear Waste
Other Tobacco Products
Contingent Nuclear Waste
Deed Recording Fees
Wine Additional
Dry Cleaning:
Stoddard Solvent Fee
Tetra Solvent Fee
Wine Excise
Corporate Taxpayer
Income Code
License Code
Quarterly Estimated Code
Corporation (Domestic or Foreign)
Savings & Loan
Corporate Taxpayer
Income Code
License Code
Quarterly Estimated Code
Corporation (Domestic or Foreign)
Savings & Loan
3. Electronic Funds Transfer (EFT)/Electronic Data Interchange (EDI)
The Department of Revenue has designed an Electronic Filing Program (EFT/EDI) for the transmission of your payment and filing your tax return information for sales, use, accommodations, local option and/or special local taxes.
Businesses that have paid $15,000 or more during any one filing period during the past year may be required to pay electronically. Taxpayers with less than $15,000 in tax due during a filing period may participate voluntarily with the Electronic Funds Transfer (EFT) Program.
If you are interested in filing and paying one tax through EFT/EDI, you must file and pay all of these taxes through EFT/EDI. For example, you cannot file and pay sales tax through this program and pay local option through a conventional process.
Be aware that you must file both the return and the payment electronically; you cannot choose to do one part electronically and the other in a conventional method.
Electronic payments can be made by using the ACH (Automated Clearing House) debit or credit method.
Advantages of participating in the EDI/EFT program include:
To register, please call 1-800-379-9409 or e-mail firstname.lastname@example.com.
4. Electronic Payment Over the Internet
You may also make WithholdingTax, Corporate Tax Declarations and delinquent payments online by using our ePAY system from our website. There is no cost to you and no registration is required. Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft).
5. Individual Income Tax Electronic Filing
Using FastFile, South Carolina accepts electronically filed state income tax returns. Refund and balance due returns are accepted electronically. Refunds may be deposited directly into your bank account.
FastFile lets you use one of four programs to file your South Carolina tax returns. Visit the Department of Revenue website at www.sctax.org for more information on each of these options. They are:
Online Filing
Electronic Filing
A Word About Forms
The state and federal forms used in this guide are for informational and educational purposes.
You may obtain additional state forms using one of three methods:
For copies of federal forms you may also use one of three methods:
For copies of other South Carolina state forms:
Visit the South Carolina State Government website at www.myscgov.com
The Taxpayers' Bill of Rights gives you certain rights when dealing with the South Carolina Department of Revenue. These include the right to:
For additional information about the Taxpayers' Bill of Rights contact the Taxpayer Rights Advocate at the South Carolina Department of Revenue (803) 898-5444 or by mail at Taxpayer Rights Advocate, Department of Revenue, PO Box 125, Columbia SC 29214 or
E-mail through our website www.sctax.org.
Checklist for New Businesses in South Carolina
For additional assistance, a complete listing of contact information and telephone numbers is located in the Government Assistance Section of this guide.
Will you sell or lease any goods or provide any services?
Will you have any employees?
Will you purchase any items for your business?
Does your business own equipment, furniture or fixtures?
Will you be selling beer, wine or liquor?
Does your business provide overnight accommodations?
Is your business a place of amusement?
Will you own and operate coin devices, operated game machines or table games including "juke boxes," pool tables or foosball tables?
Do you sell tires, batteries, oil or appliances?
Will your business incorporate?
Will you purchase a business from a previous owner?
Why Do Most New Businesses Fail?
Your new business is more likely to succeed if you avoid the following pitfalls. Some of the reasons most new businesses fail are:
We want your business to succeed!
Here are some things you need to do to help make that happen:
Forms of Business Organization
There are many types of business entities including sole proprietorship, partnership, limited liability partnership (LLP), corporation, limited liability company (LLC), and single member limited liability company.
° Sole Proprietorship
A sole proprietorship is a business that is owned by an individual who is solely responsible for all aspects of the business. The owner is personally responsible for all debts of the business, even in excess of the amount invested in the business.
° Partnership
A partnership is a legal entity that is jointly owned by two or more individuals. As in the sole proprietorship, the owners are personally responsible for all debts of the business, even those in excess of the amount invested in the business.
° Corporation
A corporation is a business that is formed and authorized by law to act as a single taxpayer, although constituted by one or more persons, and is legally endowed with rights and responsibilities. It is advisable to consult a lawyer when organizing a corporation to assure full compliance with state and federal laws.
° Limited Liability Company
A limited liability company is an unincorporated business association that provides its owners (members) limited liability and flexible management and financial alternatives. An LLC allows you the choice of having the entity taxed as a partnership or as a corporation and provides the limited personal liability of corporations.
° Single Member Limited Liability Company
A single member limited liability corporation that elects to be disregarded for federal income tax purposes will be disregarded for state tax purposes. The revenue, expenses, income, assets, liabilities and equity of the disregarded entity will flow up from the owner to the limited liability company as if it were a division of the owner. Therefore, a single member who is a corporation will consider income from the Single Member LLC as income from one of its divisions. An individual member would consider the income from a Single Member LLC as if it were Schedule C income.
The best time to set up a record-keeping system for a business is before you start the business. Experience clearly indicates that the use of an adequate record-keeping system increases the chances of business survival.
The key to successful record keeping is a commitment to a system that is:
However, no matter how simple and easy the system is, it will not happen by magic.
You must make it work. Practice the following rules and record keeping will be less of a chore:
Every business should have up-to-date records that provide the following:
Records to Keep
Income. The money you receive from sales or services is income. Your records can help identify the source of income.
Receipts can be identified using sales slips, cash register receipts and invoices. It is helpful to categorize income as you receive it and to keep separate records of all sales tax collected.
Account receivable. You should keep a record of money owed to you and the reason. Most new businesses cannot afford to offer extensive credit. A system should also be developed to collect money owed to the business and to keep track of the age of the receivables.
Accounts payable. A record of goods or services received on account or credit is called an accounts payable. You must pay for these goods and services. Consider them a cost of business.
Inventory. Develop a system to record inventory. You will need to record the value of your beginning and ending inventory each year for tax purposes.
Depreciation of equipment and fixed assets. Many businesses need equipment, fixtures and facilities in order to function. The use of these items results in certain loss of value and at some future date these items will need to be replaced. This is a cost of business operations and must be a part of a complete record-keeping system.
Insurance records. Most businesses need liability and property loss insurance. You will need to keep a record of each policy, dates effective and annual premiums.
Payroll records. If you have employees, record keeping is more involved. It is necessary to keep records of payroll payments including the rate of pay, federal and state withholding tax, unemployment tax, workers compensation, pension plans, etc.
Establishing Good Business Practices and Procedures
The suggestions listed here can help a new business owner simplify the record-keeping process.
If these guidelines are used before the transactions begin to occur, confusion, duplication and lost tax benefits can be avoided.
Maintain separate business checking accounts, charge accounts and savings accounts.
This ensures that transactions are clearly identified as business, and a supporting document is created for each check written or deposit made. A checking account eliminates the need for cash payments which are difficult to track and support without records.
A separate checking account is only effective in tracking expenditures if you resist writing checks payable to "Cash" or yourself.
Pay all bills by electronic funds transfer (EFT), credit card or check.
This is your record of having paid bills and makes it easier to analyze expenditures.
Do NOT pay in cash.
Create a petty cash fund. For small expenses it is often practical to pay cash, retain the receipt, and reimburse yourself through a petty cash fund.
Be sure to document the receipts and reconcile the fund on a regular basis.
Be sure to document the receipts and reconcile the fund on a regular basis.
Develop a filing system.
Keep records supporting items in a tax return until the statute of limitations for that return expires (usually six years).
If you depreciate or sell an asset, you should keep records that verify your purchase as long as they are needed to figure the basis of the original or replacement of the property. Keep your old tax returns. They help jog the memory in preparing subsequent years' returns. Start with something simple and modify or expand as needed.
Keep records supporting items in a tax return until the statute of limitations for that return expires (usually six years).
If you depreciate or sell an asset, you should keep records that verify your purchase as long as they are needed to figure the basis of the original or replacement of the property. Keep your old tax returns. They help jog the memory in preparing subsequent years' returns. Start with something simple and modify or expand as needed.
Prepare income deposit and disbursement procedures.
Sketch out the steps you follow when receiving cash, recording and depositing money.
Don't keep cash or checks lying around which can invite theft or loss. Endorse all checks for deposit only as soon as you receive them.
Decide on a routine for receiving bills or outstanding payables, checking the accuracy of the invoice, paying, recording the expenditure and filing the documentation associated with the transaction.
Set aside time on a monthly basis to review the accounts, balance the business checkbook and total the income and expenditure accounts.
Sketch out the steps you follow when receiving cash, recording and depositing money.
Don't keep cash or checks lying around which can invite theft or loss. Endorse all checks for deposit only as soon as you receive them.
Decide on a routine for receiving bills or outstanding payables, checking the accuracy of the invoice, paying, recording the expenditure and filing the documentation associated with the transaction.
Set aside time on a monthly basis to review the accounts, balance the business checkbook and total the income and expenditure accounts.
Keep an accurate auto mileage log.
Nearly all small business owners are eligible for a vehicle expense deduction.
Nearly all small business owners are eligible for a vehicle expense deduction.
It may seem premature to worry about record retention during the start-up of a business, but remember that once records are discarded it is unlikely they can be replaced. Here are a few guidelines to ensure that you keep the appropriate records.
Record Keeping Tips
Keep the following tips in mind as you develop your record keeping system:
When mailing forms be certain that the postage on your envelope is sufficient and your complete return address in the upper left corner. Also, please remember:
· Envelopes with insufficient postage will be returned to you by the post office
· Envelopes with insufficient postage will be returned and will not be considered timely filed if not received by the due date
· If your envelope contains more than three pages, it may require additional postage; consider taking it to the post office to determine the proper postage
For Additional Information:
For more information pertaining to taxes, visit the Department of Revenue's home page on the Internet at www.sctax.org. Tax laws, regulations, policy documents, publications, various links and attorney general opinions may be found there.
The Office of Taxpayer Education at the Department of Revenue offers a variety of tax and business-related seminars and workshops on a wide range of topics on a regular basis. Contact Taxpayer Education at (803) 898-5420 or visit the Department of Revenue website www.sctax.org and look under the Tax Workshops button to receive additional information.
Sales and Use Tax
The Basics
Sales tax is imposed on the sale of goods and certain services in South Carolina. Sales tax or use tax is imposed on goods and certain services purchased out of state and brought into South Carolina or on which no sales tax has been paid. The statewide sales and use tax rate is 5%. Counties may impose an additional 1% local option sales and use tax and 1% special local taxes if voters in that county approve the tax. Generally, all retail sales of tangible personal property are subject to the state's sales or use tax.
Sales Tax
The sales tax also applies to the fair market value of tangible personal property previously purchased by the retailer at wholesale (for re-sales), but used by the retailer or any other person withdrawing tangible personal property to be used and consumed by them. In addition to applying to items one normally thinks of as tangible personal property - furniture, appliances, clothing, etc. - the sales and use tax also applies to communications like local telephone services, cable television services, satellite programming services, faxing services and paging services, as well as laundry and dry-cleaning services, accommodations and electricity.
A 10% sales tax applies to telephone services to 900 and 976 exchanges. The sales and use taxes imposed extend to gross proceeds accruing or proceeding from the business providing 900/976 telephone service and all revenues derived from this imposed tax must be credited to the general fund of the state.
Use Tax
Anyone who buys tangible personal property from out-of-state and brings it into South Carolina is responsible for paying a use tax at the rate of 5% plus any applicable local taxes on the sales price. Businesses that make non-taxed purchases out of state, report and pay the use tax on their monthly sales and use tax return, State Sales and Use Tax Return, form ST-3.
A taxpayer is liable for the use tax imposed on tangible personal property if, upon payment of the sales and use tax, the personal property is:
If the amount of the sales or use tax paid in the other state is less than the amount of use tax imposed, the purchaser will pay the difference. The same rules for sales tax also apply to use tax.
The rental of transient accommodations is subject to a 2% accommodations tax in addition to the 5% sales tax (and the 1% local tax, if applicable). If you rent out rooms or spaces at hotels, campgrounds, boarding houses, etc., the accommodations tax also applies to rentals of your vacation home or second home.
Rentals of the same room to the same person for 90 continuous days are not subject to the tax. If you rent a room in your place of residence and the house has less than six bedrooms, the accommodations tax would not apply. If you rent transient accommodations for no more than one week each calendar quarter, a retail license is not required, but you still must report and pay the accommodations tax annually. Additional guest charges such as movie rentals, room service, valet services, etc. are subject to the 5% sales tax.
You are required to obtain a retail license and collect and pay the accommodations tax at the same time you file your sales tax return.
For additional information, go to the South Carolina Department of Revenue website, www.sctax.org and see SC Revenue Ruling 98-21.
South Carolina imposes a casual excise tax at the rate of 5% for the issuance of every title or other proof of ownership for motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals.
Generally, the maximum casual excise tax is $300 ? for additional information, see SC Revenue Ruling #95-12.
The payment of this tax is a prerequisite to the titling, licensing, or registration for the above-mentioned items. Exempt from this tax are transfers between members of one's immediate family.
A maximum sales tax of $300 is imposed on the sale or lease of motor vehicles, boats, aircraft, motorcycles, trailers or semi-trailers pulled by a truck tractor, horse trailers, recreational vehicles and certain self-propelled light construction equipment.
The $300 maximum tax also applies to the sale of musical instruments and office equipment sold to religious organizations. Purchasers must submit a Religious Organization Affidavit for Musical Instruments/Office Equipment, form ST-382 to the seller for items purchased by religious organizations.
Sales of Motor Vehicles to Nonresidents
Sales of new or used motor vehicles, trailers, semi-trailer and pole trailers to residents of another state are taxed at the rate imposed by the purchaser's state of residence. The tax cannot exceed the $300 maximum tax imposed by South Carolina.
For South Carolina sales tax purposes, sales to nonresidents of new or used motor vehicles, trailers, semi-trailers, and pole trailers that are registered and licensed in the purchaser's state of residence, are taxed at the lesser of the:
No sales tax is due in South Carolina, however, if a nonresident purchaser cannot receive credit in their resident state for sales tax paid to South Carolina. Vehicle Affidavit for Nonresident, form ST-385 must be completed on each vehicle sold to a nonresident.
The first 35% of the selling price of a new or used manufactured home, after any trade-in (if applicable) is exempt from sales and use tax.
After allowing for the exemption, the maximum tax imposed on the remaining balance and is subject to tax as follows:
Twenty-seven counties in South Carolina impose an additional 1% local option sales tax. The combined sales tax rate in these counties is 6%.
The counties with the local option sales and use tax and the effective dates of implementation are:
Effective Date
July 1, 1991
Charleston, Colleton, Jasper, Hampton, McCormick and Marion
May 1, 1992
Abbeville, Allendale, Bamberg, Edgefield, Lancaster, Marlboro and Saluda
May 1, 1994
Chester and Florence
May 1, 1995
May 1, 1996
Dillon, Lee and Sumter
May 1, 1997
Berkeley, Chesterfield, Clarendon, Darlington, Kershaw and Williamsburg
May 1, 1998
May 1, 1999
Barnwell, Laurens,
April 30, 2000
Effective Date
July 1, 1991
Charleston, Colleton, Jasper, Hampton, McCormick and Marion
May 1, 1992
Abbeville, Allendale, Bamberg, Edgefield, Lancaster, Marlboro and Saluda
May 1, 1994
Chester and Florence
May 1, 1995
May 1, 1996
Dillon, Lee and Sumter
May 1, 1997
Berkeley, Chesterfield, Clarendon, Darlington, Kershaw and Williamsburg
May 1, 1998
May 1, 1999
Barnwell, Laurens,
April 30, 2000
Additional counties may approve the local tax at that time through local elections. If voters approve the tax, the tax will become effective in that county on May 1 following the November election date. Items limited to the $300 maximum sales and use tax are not subject to the local tax.
Special Local Sales Taxes
Voters may approve through a county referendum the following taxes:
- 1% local sales and use tax to be used for transportation needs such as roads and bridges. This tax may be imposed in addition to the local option sales and use tax.(Effective: June 13, 1997)
- 1% local sales and use tax to fund specific capital projects such as roads, bridges, public facilities, recreation facilities, and water and sewer projects. This tax may be imposed in addition to the local option sales and use tax but may not be imposed along with any other local sales tax. This referendum may first be held in November 1998. The Department of Revenue will collect this tax. (Effective: July 1, 1997)
The following counties impose the special local 1% sales and use tax for capital projects: Aiken, Allendale, Newberry, Orangeburg and York.
Effective May 1, 2000, Chester County no longer imposes the 1% Capital Projects Tax. Jasper County discontinued the 1% Capital Projects tax effective December 1, 2002.
-1% local sales and use tax for schools. The state legislature has only approved the school tax to be voted upon in Berkeley, Cherokee, Colleton and Union counties. Currently, only voters in Cherokee and Chesterfield counties have approved the tax. The tax is used for school construction and improvements. (See South Carolina Revenue Ruling #96-9 for more information on the Cherokee County local tax.)
- Chesterfield County imposed a 1% School District Tax effective September 1, 2001. Jasper County imposed a 1% School District Tax effective December 1, 2002
Food is exempt from the school district tax but not the capital projects tax.
Generally, all retail sales are subject to the sales and use tax. However, there are a number of exemptions from the tax, most notably, certain items used in farming and manufacturing, medicines sold by prescription and sales to the federal government.
Items excluded from the sales and use tax primarily include sales of goods for resale.
Other excluded items include certain property used in the manufacturing process, materials used to ship manufactured goods for sale and items brought into the state that are for use outside the state.
Sales to individuals 85 years of age and older are exempt from 1% of the state sales tax on the purchase of items for their personal use.
Business Exemptions
The following items are exempt from sales and use tax:
The following when used by a qualified recycling facility:
Government Exemptions
Educational or School Related Exemptions
Agricultural Exemptions
General Exemptions
After you receive your retail license or purchaser's certificate of registration, you will receive preprinted forms for reporting and paying the sales and use tax.
Please use these forms?it makes crediting your account much easier.
Returns and payments are due no later than the 20th of the month following the month in which the sales were made.
For example:
You have $2000 worth of sales in the month of January. The sales tax return for the month of January is due February 1 and must be filed no later than February 20. The return must be postmarked on or before February 20 to be considered timely filed.
The tax is remitted for the month the sale was made regardless of whether the tax was collected from the customer in that month. Depending on the amount of tax paid, the Department of Revenue may authorize certain businesses to pay quarterly, seasonally or annually, rather than monthly.
Reporting and Paying the Tax Electronically
As a South Carolina business owner, you can conveniently file your Sales tax return by using the Business Tax TeleFile System. Business Tax TeleFile is available twenty-four hours a day / seven days a week. To qualify to file a Business Tax TeleFile sales return, you must have zero gross proceeds of sales, rentals, use tax or withdrawals for the filing period covered.
As a first time user you're required to register on the Business Tax TeleFile System before filing. Registration can be handled directly on the system during the initial telephone call. The registration and filing process takes less than five minutes. Subsequent filings take less than three minutes.
The procedure is completely paperless; mailing additional documentation to the Department of Revenue is not required. You need to keep a copy of your report for your files, however.
To use the Business Tax TeleFile System, dial (803) 898-5918 and follow the instructions. If additional assistance is needed, you can contact the Business Tax TeleFile coordinator in Columbia at (803) 898-5783.
Businesses that have paid $15,000 or more during any one filing period during the past year are required to pay electronically. Taxpayers with less than $15,000 in tax due during a filing period may participate voluntarily with the Electronic Funds Transfer (EFT) Program. For further information call 1-800-476-0311.
If you are interested in filing and paying one tax through EFT/EDI, you must file and pay all of these taxes through EFT/EDI. For example, you cannot file and pay sales tax through this program and pay local option through a conventional process. Be aware that you must file both the return and the payment electronically; you cannot choose to do one part electronically and the other in a conventional method.
Electronic payments can be made by using the ACH (Automated Clearing House) debit or credit method.
Advantages of participating in the EDI/EFT program include:
To register, please call 1-800-379-9409 or e-mail firstname.lastname@example.com.
Discount for Timely Payment
If returns are filed and the taxes paid in full by the due date, you will be allowed a discount on taxes due. For taxes less than $100, you may take a 3% discount of the tax. For taxes of $100 or more, your discount is 2% of the tax.
The maximum discount allowed per taxpayer (all locations included) during the state's fiscal year (July 1 - June 30) is $3,000. The statute was amended (effective July 1, 2002) to increase that discount to a maximum of $3,100 if the retailer files his sales and use tax returns electronically.
Nonresident retailers not required by law to collect South Carolina sales or use tax, but who voluntarily register to do so, are allowed a maximum discount of $10,000 each fiscal year. In calculating the maximum discount, begin with the June return filed in July and end with the May return filed in June.
Cash Deposit or Bond
Transient retailers who have no permanent business location from which retail sales are made may make a sufficient cash deposit or bond with the Department of Revenue to cover at least their annual sales tax liability.
This cash deposit or bond must be made before receiving a retail license.
If your business sells clothing, footwear and/or educational supplies, South Carolina's sales tax exemption may impact your business. The three-day sales tax exemption occurs from 12:01a.m. on the first Friday in August and ends at midnight the following Sunday.
The following items are sales tax exempt during this period:
Sales of the following items are NOT sales tax exempt during this period:
E-mail Information
Do you want to receive E-mail notices of newsletters or hot topics related to Sales and Use Tax? To use our E-Mail notification service, sign up for our Sales and Use Tax Listserv at www.sctax.org
What Happens If You Don't File a Return?
Penalties and Interest are imposed if you don't file.
If you fail to comply with any of the tax rules administered by the Department of Revenue, your retail license may be revoked and you must close your business until all tax liabilities have been paid.
Selected Forms to Use
There are a number of Sales and Use Tax forms to use based on the types of taxes you collect and where you are located.
ST-3 State Sales and Use Tax ReturnST-8 Single Sale CertificateST-8-A Resale CertificateST-10 Application for CertificateST-382 Religious Organization Affidavit for Musical Instruments/Office EquipmentST-385 Vehicle Affidavit for NonresidentST-387 Application for Sales Tax Exemption Under Code Section 12-36-2120(41), "Exempt Organizations"ST-388 State Sales, Use and Accommodations Tax ReturnST-389 Schedule for Local Option Sales and Use Tax ReturnST-403 State Sales, Use and Aviation Gasoline Tax ReturnST-407 Food Tax Schedule
For the most up-to-date forms, visit the South Carolina Department of Revenue website at www.sctax.org and go to the Forms and Instructions button.
Payroll Taxes
If you'll be employing others to work in your business, you'll need to withhold payroll taxes for both the federal government, FICA and the State of South Carolina.
South Carolina requires withholding from:
You must apply for a South Carolina Withholding number in order to establish an account in which to deposit your payments. This can be done online at our website, www.sctax.org or by completing the Business Tax Application, form SCTC-111. The number entitles you to be a withholding agent . The withholding number is permanent and will not be issued to any other business or person. Should the form of ownership of the business entity change, such as conversion from a partnership to a corporation, a new withholding number must be obtained. The withholding number will appear on all reports, returns, and correspondence concerning the withholding agent and the account
How to Figure Withholding Payments
A federal form W-4, Withholding Exemption Certificate, should be on file for each employee to determine the amount of income tax to withhold from an employee's wages. South Carolina has adopted the use of the federal form W-4. We do not have a separate state W-4 form. It is not required that an employee file a separate form W-4 for state purposes, unless the employee claims a smaller number of exemptions from those claimed for federal purposes. Use the federal form W-4 and indicate on the face of the form that it is "For State Purposes." An employee is not allowed to claim a greater number of exemptions for state purposes than the exemptions claimed for federal purposes. Copies of W-4 forms are available on our website, /, or from the Internal Revenue Service and are to be maintained in the employer's records.
Use the withholding tables in your booklet to determine the amount of tax to withhold depending on the employee's salary, number of exemptions and frequency of payment (daily, weekly, biweekly, semimonthly or monthly).
All South Carolina withholding agents are required to withhold tax from employees' wages at the same time employees are paid (based on the date of the paycheck). The state withholding tax dollar limit that determines when a deposit or payment is to be made (except for nonresident withholding agents) is determined by your federal deposit requirement (i.e., monthly, weekly or daily).
Withholding agents will receive a withholding package annually from the Department of Revenue with forms for filing and remitting the taxes. Each return in the package will be preprinted with the name and withholding number assigned to the withholding agent.
Also included in this package are preprinted coupons for you to use to deposit withholding taxes at your bank, if applicable. Use of these preprinted forms will help assure your return and payments are processed timely and efficiently. All preprinted Withholding Tax Payment Coupons (form WH-1601) must be deposited at one's bank at the same time that federal withholding tax and FICA are deposited.
South Carolina resident withholding agents must deposit state withheld taxes with their local banks.
All payments made without a preprinted payment form (WH-1601) must be mailed to the address on the form.
Electronic Payment Over the Internet
You may also make withholding payments online by using our ePAY system from our website. There is no cost to you and no registration is required. Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft). Go to our website at www.sctax.org to use the program.
Electronic Funds Transfer
Withholding agents who withhold $15,000 or more state tax per quarter are required to pay taxes through electronic funds transfer. The Department of Revenue notifies withholding agents of their requirement to make electronic funds transfers. Other withholding agents may participate voluntarily in the Electronic Funds Transfer (EFT) program. For additional information, contact Electronic Services at the Department of Revenue 1-800-379-9409 (statewide) or (803) 898-5740 (in Columbia).
Payment Due Dates
Resident Withholding Agents:
Payment Due Dates are based on FEDERAL guidelines.
If your FEDERAL tax liability is:
Both your Federal and SC withholding tax payments are due:
Less than $2,500 for the quarter
Within 30 days after the end of the quarter
Less than $50,000 during the 12 month lookback period
By the 15th of the following month
More than $50,000 during the 12 month lookback period
Paydays on Wednesday, Thursday, Friday?following Wednesday
Paydays on Saturday, Sunday, Monday, Tuesday?following Friday
1 Banking Day
$100,000 or more accumulations
Within 1 banking day
If your FEDERAL tax liability is:
Both your Federal and SC withholding tax payments are due:
Less than $2,500 for the quarter
Within 30 days after the end of the quarter
Less than $50,000 during the 12 month lookback period
By the 15th of the following month
More than $50,000 during the 12 month lookback period
Paydays on Wednesday, Thursday, Friday?following Wednesday
Paydays on Saturday, Sunday, Monday, Tuesday?following Friday
1 Banking Day
$100,000 or more accumulations
Within 1 banking day
Nonresident Withholding Agents:
Payment due dates are based on State Tax liability.
If your STATE tax liability is:
SC withholding payment is due:
Less than $500 for the quarter
Within 30 days after the end of the quarter
More than $500 for the quarter
By the 15th of the following month
If your STATE tax liability is:
SC withholding payment is due:
Less than $500 for the quarter
More than $500 for the quarter
Filing Withholding Returns
A tax return must be filed even if no South Carolina withholding taxes were withheld during the filing period covered if the account was open. As a South Carolina business owner, you can conveniently file your withholding tax return by using the Business Tax TeleFile System, twenty-four hours a day / seven days a week. To qualify to file a withholding return, you must have a zero payment amount due with the return for the filing period covered.
As a first-time user you are required to register on the Business Tax TeleFile System before filing. Registration can be handled directly on the system during your initial telephone call. The registration and filing process takes less than ten minutes. Subsequent filings take less than eight minutes. The procedure is completely paperless ? mailing additional documentation to the South Carolina Department of Revenue is not required.
If you file your WH-1606 (Fourth Quarter/Annual Reconciliation) using the TeleFile system, you should submit your W-2's and/or 1099's with form WH-1612 (Transmitter Summary Report Wage and Tax Information). If using the TeleFile system, do not submit W-2's and/or 1099's with the paper form WH-1606. This will result in a duplicate filing and will potentially cause problems in your withholding account.
To use the Business Tax TeleFile System, dial (803) 898-5918 and follow the instructions. If additional assistance is needed, you can contact the Business Tax TeleFile coordinator in Columbia at (803) 898-5111.
Reconciliation Returns
There are two (2) types of reconciliation returns:
All withholding agents are required to file a quarterly reconciliation of tax withheld during the quarter (form WH-1605). A fourth quarter/annual reconciliation return (form WH-1606) must be used to reconcile the withholding account for the fourth quarter and year and transmit state copies of W-2 forms. Quarterly payers will remit fourth quarter tax due with form WH-1606.
Due dates for the first three quarterly returns are the same as federal:
First Quarter
April 30
Second Quarter
July 31
Third Quarter
October 31
Mail your returns to:
South Carolina Department of Revenue WithholdingP O Box 125Columbia SC 29214-0004
A federal Withholding Tax Statement, form W-2 must be furnished to each employee before January 31 following the close of the calendar year or on the last day of employment.
The form W-2 must include the following information:
Copy one of the W-2 form must accompany WH-1606 form, the Fourth Quarter/Annual Reconciliation of Income Tax Withheld return, and sent to the South Carolina Department of Revenue by February 28 (or February 29 in leap years).
W-2 Notes
W-2 Wage and Tax Statement forms have multiple copies. They are:
Specific information needed to complete the W-2 form is given in a separate Internal Revenue Service booklet entitled "2001 Instructions for Forms W-2 and W-3."Because the Social Security Administration processes paper forms by machine, you cannot file with the SSA forms W-2 and W-3 that print from the IRS website (www.irs.org).
Due Dates for W-2's
Furnish copies B, C and 2 to the employee generally by January 31. (File copy A with the SSA generally by February 28, 2003. Send all copies A with Transmittal of Wage and Tax Statements, form W-3. If you file electronically (not by magnetic media), the due date is March 31, 2003.) These dates change each year so be sure you read the instructions carefully!
Nonresident Withholding Agents
Nonresident withholding agents may mail their payments and coupons to:
:SC Department of Revenue Withholding 301 Gervais Street Columbia, SC 29214-0004The postmark date will determine timely filing. You may also make withholding payments online by using our ePAY system from our website. There is no cost to you and no registration is required. Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft).
A nonresident withholding agent whose accumulated South Carolina withheld tax is less than $500 during a calendar quarter must remit tax withheld to the Department of Revenue by the last day of the month following the quarter in which the tax was withheld.
For example: If the accumulated amount withheld is $500 or more by the end of a month, the tax withheld must be remitted by the 15th day of the following month.
For example: If the accumulated amount withheld is less than $500 in any month, the amount can be rolled forward to the next month within the same quarter.
Nonresident withholding agents withholding $15,000 or more per quarter are required to pay taxes through electronic funds transfer (see Electronic Funds Transfer EFT above).
WH 1601 Withholding Tax Payment CouponWH 1603 Withholding TablesWH 1603F Computer FormulaWH 1605 Quarterly Withholding Tax Return (Quarters 1, 2 and 3)WH 1605A Amended Quarterly Tax ReturnWH 1606 Fourth Quarter/Annual Reconciliation of Income Tax WithheldWH 1606A Amended Fourth Quarter/Annual Reconciliation of IncomeTax WithheldWH 1612 Transmitter Report and Summary of Magnetic Media FormW-2Wage and Tax Statement (federal form)Form W-4 Withholding Exemption Certificate (federal form)Form 105 Information Guide - South Carolina Withholding TaxSCTC-111 Business Tax Application
Other South Carolina Taxes You May Need to File
Unemployment Insurance Contributions
Employers of one or more workers must pay a tax on wages paid to employees for purposes of providing unemployment compensation.
This tax is administered and collected by the South Carolina Employment Security Commission.
South Carolina Employment Security Commission1550 Gadsden StreetPost Office Box 995Attn: UI Technical ServicesColumbia, SC 29202Telephone: (803)737-3075
Workers' Compensation
Employers with four or more employees must purchase insurance or qualify as a self-insurer by meeting certain requirements in accordance with the rules and regulations of the South Carolina Workers' Compensation Commission. Workers' Compensation provides benefits to employees who have sustained a job-related injury or illness. The Workers' Compensation Commission collects premiums.
South Carolina Workers' Compensation Commission1612 Marion StreetPost Office Box 1715Columbia SC 29202Telephone: (803) 737-5700
Penalties and interest are added if you don't file a return.
Property tax is generally administered and collected by local governments. Real property is subject to property taxes. Personal property is used in business and certain personal property is used for personal purposes such as motor vehicles, boats and airplanes are subject to property taxes.
Property taxes are generally assessed and collected by local governments, but the Department of Revenue assesses and collects some property taxes and oversees all property tax assessments to ensure equitable and uniform assessment throughout the state. Businesses must report business personal property taxes to the Department of Revenue. There is no state or local tax on intangible personal property or inventories.
How the Tax is Figured
Each class of property is assessed at a ratio unique to that type of property. The assessment ratio is applied to the market value of the property to determine the assessed value of the property. Each county, municipality or other taxing entity then applies its millage rate to the assessed value to determine the tax due. A mill is a unit of monetary value, equal to one-tenth of a cent, or one-thousandth of a dollar (.001).
For example, if the millage rate is 200 mills and the assessed value of the property is $1,000, the tax on that property is $200.
Real and personal property of manufacturers, utilities, railroads, carlines and airlines and business personal property of merchants is assessed by the Department of Revenue. The county assessor assesses all other real property.
The county auditor assesses all other personal property.
A state property tax is levied on private carlines and airlines based on the average statewide millage rate.
The following assessment ratios are applied to the value of the property to determine the assessed value for purposes of taxation:
All businesses assessed by the Department of Revenue are required to file a business personal property return with the Department of Revenue annually. All furniture, fixtures and equipment are to be reported at acquisition cost with a deduction allowed for depreciation.
The return is due on the last day of the fourth month following the close of the tax year. No extension of time for filing will be granted.
South Carolina law provides for a number of property tax exemptions. To obtain an exemption, application must be made to the Department of Revenue on Application for Exemption, form PT-401.
The properties listed below are exempt from property tax:
Exemptions as they relate to institutions of learning
All property of:
· Schools· Colleges and other institutions of learningexcept where the profits of the institutions are applied to private use
The property of all charitable institutions
In the nature of hospitals, institutions caring for:
The property of all:
Two motor vehicles for which special license tags have been issued are exempt if owned by a prisoner of war:
Nonprofit organizations involved in the following:
Real property leased on a nonprofit basis to a(n):
The following exemptions as they relate to personal effects and the home
The following exemptions pertain to business concerns
Fee-in-Lieu of Property Taxes
Industries investing at least $5 million ($1 million in some counties) in South Carolina may negotiate for a fee-in-lieu of taxes, resulting in a savings of about 40% of property taxes otherwise due.
The project may be financed with industrial revenue bonds and structured as a purchase-leaseback. The county may hold title to the fee assets. Under certain fee agreements, the title remains with the company.
A company must make the minimum investment over a certain period to qualify.
A county may grant an additional two years to complete a project. The minimum investment must be met within a certain period of time.
In addition, the fee agreements may negotiate a fixed millage rate for the term of the fee or set a millage rate that varies each five years in accordance with the average millage for the site.
Tax Returns
Tax returns reporting business personal property, manufacturers' property and utility companies' property must be submitted by businesses to the Department of Revenue by the last day of the fourth month after the close of the taxpayer's accounting period. No extension of time for filing can be granted.
PT-100 Business Personal Property Tax ReturnPT-139 Water and Sewer Companies Property Tax ReturnPT-300 Manufacturer's Property Tax ReturnPT-401 Property Tax Exemption ApplicationPT-417 Private Carline Tax ReturnPT-418 Airline Property Tax ReturnPT-420 Utility and Railroad Company Property
Penalties are imposed if you do not file including the issuance of an estimated property tax assessment.
What Are the Basic Requirements for a Beer and Wine Permit or a Liquor Permit?
An applicant must:
-Depending on the type of license, the location must meet certain requirements.
Alcoholic Liquors Tax
The alcoholic liquors tax is imposed on all manufacturers, wholesalers and retailers of alcoholic liquors. Anyone selling alcoholic liquors must apply to the Department of Revenue for a license.
A $100 filing fee must be submitted with the application. The license fees are:
Registered Producer's Certificate of Registration
$200 every two years
Producer Representative's Certificate of Registration
$50 every two years
24-hour Mini-Bottle License for Nonprofit Functions
$35 per day
24-hour Nonprofit Organization License to Sell from Large Bottles
Excise Tax:
Per 8 ounces of alcohol
$ .17
$ .25
Per liter
$ .71825
Standard case (wholesalers)
Standard case (payable by retailers to wholesalers)
Standard case (additional tax paid by wholesalers)
$ .56
All wholesale distributors, retailers, breweries and wineries doing business within South Carolina are required to be licensed by the Department of Revenue.
New businesses must pay a $200 filing fee with the license application in addition to the appropriate license fees:
$2,000 every two years
$400 every two years
Certificate of Registration for Breweries and Wineries
Winery/Brewery Application
If a winery uses its own grapes and located in South Carolina
$10 every two years
Special Functions/Fair Permits
$10 daily up to 15 days
7-day beer and wine retail permits
7-day beer and wine retail permits
for businesses which close on Saturday for religious reasons
$500 every two years
Brew pubs
Temporary beer and wine Permits
$25 for up to 120 days
Wholesale distributors are required to pay beer and wine tax, the tax rates are:
Beer per Ounce $.006
Wine U.S. Sized Containers:
Per 8 oz. up to 1 gallon
Per gallon
Additional tax per 8 oz
Additional tax per gallon
Wine Metric Sized Containers:
Additional tax per liter
Each wholesaler is required to report all beer and wine sold or disposed of within this state and pay the tax due no later than the 20th of the month following the month the sales occurred.
What Type of Establishments Can Be Licensed for a Mini-Bottle License?
Restaurants must be primarily and substantially engaged in the preparation and serving of meals, have seating for not less than forty (40) people simultaneously at tables, which must be usable and suitable for the consumption of meals year round and have a Grade A health permit from the South Carolina Department of Health and Environmental Control (DHEC).
Hotels and motels must rent lodging to the public of at least twenty (20) rooms on a regular basis
Private clubs must be established for social, benevolent, patriotic recreational, or fraternal purposes, have a limited membership, be governed by bylaws, not open to the general public and must have a nonprofit charter in good standing with the South Carolina Secretary of State.
Retail liquor stores must meet structural requirements of South Carolina Code Section 61-6-1510 and may sell mini-bottles a wholesale to restaurants and bars only after they have received federal approval.
Miscellaneous Taxes
Admissions tax must be collected by all places of amusement when an admission price has been charged. The tax is 5% of the paid admissions. If you operate a place of amusement, you must obtain an admissions tax license. There is no charge for the license. You may be required to obtain a retail license.
Examples of "places of amusement" are: nightclubs, college and professional sporting events, amusement parks, golf courses, miniature golf or "putt-putt" courses, tennis courts, bowling alleys, water slides, movie theaters, musical concerts, health clubs, spas, gyms, swimming pools, skating rinks, baseball batting cages and craft shows.
Exemptions from the admissions tax are:
Reporting and Paying the Tax
Filers of Admission Tax must complete and submit to the Department of Revenue an Admissions/Theater Tax Return, form L-511 and are required to maintain a copy of this return for audit purposes.
This return is due on the 1st day of the month following period covered by the return, and becomes delinquent on the 21st day.
Timely filers are entitled to a discount computed by dividing the dollar amount of the gross receipts (for that period) by 105% for the total dollar amount that is due.
What Happens If You Don't File?
Failure to file this return will result in a penalty of 5% for the first month plus 5% for each additional month not to exceed an aggregate of 25%. Failure to pay will result in penalties of ½ of 1% per month not to exceed 25%.
Interest on all overdue accounts will be assessed at the rate provided under Sections 6621 and 6622 of the Internal Revenue Code. Rates will change quarterly depending on the prime rate. In addition interest will be compounded daily.
Nonprofit groups organized for fraternal, religious or charitable purposes which have been certified as tax exempt by the Internal Revenue Service and domiciled in South Carolina for at least three years may conduct bingo in South Carolina.
Authorized nonprofit organizations may apply for a bingo license on form L-2058. There are five categories of bingo licenses, which vary in prize limits, number of allowable sessions and costs.
The Department of Revenue authorizes the purchase of bingo cards/paper from licensed distributors. The bingo tax is 16.5 cents per $1.00 face value of the cards.
If the tax is not paid, the organization will not be able to obtain bingo cards.
Type of License
License Cost
Class AA
Class B
Class C
No Cost
Class D
$100 (10 days or less)
$200 (more than 10 days)
Class E
Class F
Class AA and B organizations must designate a promoter, who must be licensed. If a Class C organization hires a promoter, that promoter must also be licensed. The promoter must complete an application, form L-2057 to obtain a license.
The promoter's license is $1,000 annually. Each organization licensed to operate bingo must file quarterly financial reports and a list of bingo winners of $1,000 or more.
A bingo operation may take in only two times more in gross proceeds than the prize for that session. Amounts in excess of this limit are subject to a tax equal to the amount of the excess in addition to all other bingo license fees and taxes.
Deed Recording Fee
The County Clerk of Court or Register of Deeds imposes a recording fee when any lands, tenements or other realty is transferred to another person. The fee is $1.85 for each $500 of the realty's value. The value is the consideration paid or to be paid in money or money's worth for the realty.
The following transfers of realty are exempt from the deed-recording fee:
For additional information about deed recording, you can review the deed recording manual by visiting the Department of Revenue's website at / (go to "Tax Information" and then click on "Miscellaneous Taxes.")
Business License Taxes
Tobacco Products
The business license tax applies to all tobacco products sold in South Carolina. All persons selling, purchasing, distributing or importing tobacco products in South Carolina are required to pay the business license tax. The tax is paid only once. If tobacco products are purchased from a licensed distributor, then the retailer would owe no tax.
A business license is required for all persons selling, purchasing or distributing tobacco products in South Carolina at wholesale or through vending machines. A separate license is required for each business location. Apply for the license on form L-915. Manufacturers' sales representatives who conduct business in South Carolina must obtain a license by making application on form L-917.
Persons who sell tobacco products through vending machines need only one license, but they must maintain a current listing of locations of each vending machine.
Persons who own and stock vending machines on their own premises are not required to obtain a license.
The tax rates on tobacco products are:
3.5 mills/cigarette
(7 cents/pack of 20)
All other tobacco products
5% of manufacturing prices
Every person first receiving untaxed cigarettes for sale or distribution in South Carolina must file a monthly report and remit the cigarette tax.
Cigarette packages do not require tax stamps.
The tax is paid with a monthly report, Monthly Return of Tobacco Distributors, form L-922, due on the 20th day of the month following the month in which sales were made. The Department of Revenue may require tobacco tax be reported and paid during regular periods other than monthly.
-A discount for timely filing cigarette returns and paying the tax due is 3.5% of the tax due.
Every person who sells electric power for resale and every public utility and cooperative that sells electric power to the consumer must pay an electric power tax. The tax does not apply to electric power purchased from vendors previously taxed under the statute.
The tax is 5/10 of one mill (.0005) upon each kilowatt-hour of electric power sold.
The estate tax is on the privilege of transferring property at death . The State Estate Tax is the amount of credit for state death taxes allowed on the Federal Estate Tax return. The State Estate Tax return is due nine months after the date
The forest renewal tax is assessed on all primary forest products harvested from South Carolina and is paid by the processor of primary forest products. The tax is paid quarterly on the 25th of the month following the end of the quarter. Processors are required to maintain product records for three fiscal years.
The tax rates are:
Softwood products measured in board ft.
50¢ per 1,000-board ft.
Softwood products measured in cords
25¢ cents per cord
Hardwood products measured in board ft.
25¢ per 1,000-board ft.
Hardwood products measured in cords
7¢ cents per cord
Dry Cleaning Facility Registration Fees and Surcharges
Owners of dry-cleaning facilities must pay registration fees for each of their "wet-side" locations.
The initial and annual registration fees are based upon the number of employees at the facility the previous year and are computed as follows:
Number of Employees
Registration Fee
11 or more
Fees may be paid on an annual or quarterly basis. Use the Dry Cleaning Facility Registration Application, form L-2093 to register
An environmental surcharge is due on the privilege of producing in South Carolina or importing into the state perchloroethylene (tetrachloroethylene) and Stoddard (petroleum) solvent. A person importing or producing one of these solvents must register with the Department of Revenue for purposes of remitting the surcharge and pay a $30 registration fee.
The surcharge imposed is $10 a gallon on perchloroethylene and $2 a gallon on Stoddard solvent. The surcharge is due on the first day of the month after the month of production, importation or removal from a storage facility. It must be paid on or before the 20th of the month on Solvent Surcharge Return, form ST-397.
Low-level Radioactive Waste Tax
A tax is levied on the disposal of low-level radioactive waste at the facility in Barnwell County for long-term disposal. The tax is $235 per cubic foot of low-level radioactive waste disposed of into the State of South Carolina.
The owner or operator of the low-level radioactive waste disposal facility must report the quantity and types of waste disposed during the quarter and pay the tax by the 30th day following the end of the quarter.
Retailers of tires and batteries and wholesalers of appliances and motor oil are required to report and pay the solid waste excise tax on the sale of these items.
The tax is $2 per tire, battery and appliance sold and eight cents for each gallon of motor oil sold.
-The tax is reported on form ST-390. Register for the tax by checking block 8-A on form SCTC-111.
South Carolina is a member of the International Fuel Tax Agreement (IFTA).
The IFTA is a base-state agreement administered by the South Carolina Department of Public Safety and designed to simplify the administration of the state fuel use tax for interstate motor carriers.
Motor carriers who travel exclusively within South Carolina (i.e., 100% of miles in South Carolina) no longer have to file highway use returns and do not have to become licensed under IFTA. If an occasional trip out of South Carolina is required, the South Carolina intrastate carrier has the option of purchasing trip permits with each state or becoming licensed under IFTA.
All motor carriers based in South Carolina and operating qualified motor vehicles in two or more IFTA states are required to be licensed under IFTA.
If you are an IFTA carrier based in another member jurisdiction outside South Carolina, your South Carolina highway use tax account is closed.
You will report South Carolina fuel use information to your base jurisdiction IFTA. If you are not an IFTA carrier and are based in another jurisdiction, you will be required to continue filing highway use tax returns with South Carolina or obtain trip permits
For more information concerning IFTA registration, call (803) 737-6620 or for more information about IFTA tax reports, please call (803) 737-6620.
A motor fuel tax of 16 cents per gallon is imposed upon all gasoline used or consumed in this state and upon all diesel fuel used or consumed in this state in producing or generating power for propelling motor vehicles.
All suppliers and importers doing business in South Carolina are responsible for collecting the tax and reporting and remitting it to the Department of Revenue.
The reports and tax must be filed by the 22nd day of each month following the month in which the delivery is made.
Terminal suppliers, permissive suppliers, terminal operators, exporters, transporters, importers and tank-wagon operators are required to obtain a license before operating and pay applicable fees. Application should be made on form L-2045.
Fuel vendors or purchasers of motor fuel may obtain a refund of the motor fuel tax paid for the following uses:
Use the Application for Distributor's License of Motor Fuels, form L-2045 to register. This license takes thirty (30) days to process.
The Initial Annual Report of Corporations, form CL-1, must be submitted by both domestic and foreign corporations. The report should be submitted when filing:
The minimum license fee of $25 must be paid at the time the report is filed.
Tax Rate
The tax rate on South Carolina net corporate income is 5%. The starting point in determining South Carolina taxable income is the corporation's federal taxable income.
The license fee rate is .001% of the corporation's capitalization plus $15. The corporation's capital stock and paid in capital accounts are subject to this tax.
The minimum license fee is $25 and is paid a year in advance with the year's corporate tax report.
Most Common Modifications to Federal Taxable Income
1. Interest on state or local obligations other than South Carolina are additions to income
2. State and local income taxes or state and local franchise taxes measured by net income, any income taxes, or any taxes measured by or with respect to net income must be added back to federal taxable income
3. Add back federal net operating loss (NOL). South Carolina allows a South Carolina NOL carryover but no carry-back
4. If a corporation is claiming a reduction in salaries and wages due to the federal jobs credit, subtract this amount for South Carolina purposes
Tax Credits
Corporations, sole proprietorships, partnerships, S corporations and limited liability companies are eligible for the credit.
To qualify, the employer must operate qualifying manufacturing, tourism, processing, warehousing, distribution, research and development, corporate offices or certain service-related facilities.
Retail facilities and service-related industries located in distressed or least developed counties may qualify for the credit.
Qualifying service-related facilities must create a certain number of jobs at a certain pay wage or must be a qualified health-related facility.
Corporations, sole proprietorships, partnerships, S corporations and limited liability companies are eligible for the credit.
To qualify, the employer must operate qualifying manufacturing, tourism, processing, warehousing, distribution, research and development, corporate offices or certain service-related facilities.
Retail facilities and service-related industries located in distressed or least developed counties may qualify for the credit.
Qualifying service-related facilities must create a certain number of jobs at a certain pay wage or must be a qualified health-related facility.
The credit is:
· $8,000 for each new job created in distressed counties· $4,500 for each new job created in least developed counties· $3,500 for jobs created in under developed counties· $2,500 for moderately developed counties· $1,500 for developed counties
· An additional credit of $1,000 is available for each new job created in a multi-county industrial park.
· An additional credit of $1,000 is available for each new full time job created on a property eligible for the Brownfields Voluntary Cleanup Program
The credit is available for years two through six after the job is created.
The credit may not exceed 50% of the tax liability of the taxpayer but may be carried over for fifteen (15) years.
If the taxpayer pays another childcare facility to provide childcare on behalf of employees (who are South Carolina residents), the credit is 50% of payments made, not to exceed $3,000 per employee. The credit may not exceed 50% of tax liability but may be carried forward for ten (10) years.
If the taxpayer pays another childcare facility to provide childcare on behalf of employees (who are South Carolina residents), the credit is 50% of payments made, not to exceed $3,000 per employee. The credit may not exceed 50% of tax liability but may be carried forward for ten (10) years.
Under South Carolina law, businesses are allowed to claim a percentage of employee income tax withholdings for qualifying business expenditures. In some instances, another percentage of the withholdings is allocated to the Rural Infrastructure Fund that will provide grants to least-developed and underdeveloped counties. These amounts are referred to in the law as "job development credits." The determination as to how much of a job development credit a business may claim is determined by the county classification in which the qualifying business is located.
County Classification
Least developed
Under developed
Moderately developed
Development. The South Carolina Coordinating Council for Economic Development ("Council") must certify that the benefits of the project exceed the cost.
The amount to retain from withholding is calculated as a percentage of the gross wages of each new employee as follows:
Gross Wage Per New Employee
Percentage to Retain
(for 2002)
$7.18 ? $9.57
$9.58 ? $11.96
$11.97 ? $17.95
$17.96 and over
Note: The hourly gross wage figures will be adjusted annually by an inflation factor determined by the State Budget and Control Board.
The sum of the amounts determined with regard to each new employee will be the amount allowed to be claimed from the withholding for all employees. The amount is not based upon an average salary for all employees.
To be eligible to apply to claim job development credits, the business must be engaged primarily in a business that is a qualifying business for the purpose of the jobs tax credit statute. The business must provide a benefits package to full-time employees that include health care.
The business must enter into a revitalization agreement that must be approved by the Council.
The job development credits retained by the business may be used for training costs and facilities; acquiring and improving real estate; improvements to utility systems; fixed transportation facilities; construction or improvements of real property and fixtures for the purpose of complying with environmental requirements; training for all relevant employees connected to the company's export process; apprenticeship programs and relocation expenses associated with new national corporate headquarters that quality for the personal property portion of the headquarters credit.
Job Retraining Credit
A qualifying business may negotiate with the Council to claim from employee withholding an amount equal to $500 a year for each production employee being retrained. This incentive is available to existing businesses. A qualifying business may retain up to $2,000 over a five-year period for each employee being retrained.
The business must show that the retraining is necessary and must match the amount retained, dollar for dollar.
Special Returns
Qualified businesses will be provided with appropriate withholding tax returns for claiming Job Development Credits. Additional information or forms may be obtained by contacting the Withholding Tax Section at the Department of Revenue at (803) 898-5776.
Filing Requirements
Corporations are required to file one of the following forms (whichever is applicable):
These forms incorporate three filing requirements and every corporation must complete all three sections of the form, and supporting schedules.
1. Computation of income tax liability 2. Computation of license fee, and 3. Annual Report of Corporations
Tax-exempt organizations file form SC990T with South Carolina only if they have unrelated business income. These tax exempt organizations with unrelated business income must file returns using the SC990T no later than the 15th day of the fifth month following the close of the taxable year.
Corporate income tax returns are due no later than the 15th day of the third month following the close of the taxable year.
Corporations with a multi-state business are taxed only on the income earned or derived within South Carolina. This portion is determined by allocation and apportionment of income.
South Carolina generally requires use of one of the following apportionment methods:
1. A four-factor apportionment method (based on property, payroll, but double-weighting the sales factor) for taxpayers whose principle business is manufacturing or any form of collecting, buying, assembling, or processing goods and materials within this state, or selling, distributing or dealing in tangible personal property within this state.
If the sales ratio does not exist, the average is computed by using the existing ratios. If a ratio other than the sales ratio does not exist, the average is computed by using the existing ratios plus one.
2. A gross receipts apportionment method for taxpayers whose principle profits or income of a taxpayer is derived from sources other than those listed above.
Examples of corporations subject to gross receipts method of appointment are construction contractors, service companies other than public service corporations and corporations primarily engaged in rental real estate activities, or
3. A special apportionment factor provided for certain companies, such as railroad companies, telephone companies, pipeline companies, airline companies and shipping lines.
A business that operates in more than one state may petition the Department of Revenue to use a method other than the standard apportionment method in determining its South Carolina taxable income. This also applies to businesses planning a new facility or the expansion of an existing facility in South Carolina. However, for the business, the special allocation and apportionment method is only effective for five years.
The business must enter into a contract regarding the allocation and apportionment method.
The Advisory Coordinating Council for Economic Development must certify that the benefits of the facility outweigh the costs and that the facility will have a significant beneficial effect on the region for which it is planned.
Extension to File
If any corporate income tax or license fee is anticipated to be due, the taxpayer must use South Carolina extension form SC1120-T.
If no income tax or license fee is anticipated to be due and the taxpayer has requested a federal extension, the federal extension will be accepted as a South Carolina extension if the corporate return is received within the time as extended by the Internal Revenue Service.
Corporations filing a consolidated return should file a single South Carolina extension and attach a schedule listing the corporations to be included in the South Carolina consolidation. A federal extension will be accepted if all corporations filing in South Carolina are included in one or more federal extensions. A schedule must also be attached listing the corporations included in the South Carolina consolidation.
A copy of the federal or South Carolina extension(s) must be attached to the return when filed.
There is no extension for payment of corporate income tax or license fee. Any income tax or license fee due must be paid by the prescribed due date to avoid the assessment of late penalties and interest.
Declaration of estimated tax payments are required by the 15th day of the 4th, 6th, 9th and 12th months following the beginning of the taxable year.
The total of the estimated payments must equal 100% of the final tax liability, based on requirements for federal estimated income in IRC Section 6655. No estimated tax payment is required if the estimated tax is less than $100 annually.
Electronic Payment Over the Internet
You may also make Corporate Tax declaration payments online by using our ePAY system from our website. There is no cost to you and no registration is required. Using the ePAY system, payments are submitted by credit card or by electronic funds withdrawal (bank draft). Go to our website at www.sctax.org to use the program.
Consolidated Returns
Consolidated returns are permitted for parent companies and substantially controlled subsidiaries or two or more corporations under substantially the control of the same interest, provided all parties are taxable in South Carolina and have the same accounting year.
"Substantially controlled" means the ownership of at least 80% of the voting power of all classes of stock of all corporations that are a party to a consolidated return
County Rankings
South Carolinas 46 counties are ranked and designated annually for job tax credit purposes with equal weight given to unemployment rate and per capita income and then adjusted in accordance with special rules in South Carolina Code subsections 12-6-3360(B) and 12-6-3360(L), as applicable. The job tax credit is dependent, in part, on per capita income and unemployment rate data received from the South Carolina Employment Security Commission and Budget and Control Board. Because of amendments in the job tax credit statute, it is necessary to have three rankings of South Carolina's counties for purposes of the job tax credit.
Ranking List #1: For new, full time jobs created in tax years which begin in 2003, where the job tax credit was first earned after June 18, 2002, and increases in such jobs.
The Department has ranked South Carolina's counties as "distressed," "least developed," "under developed," "moderately developed," and "developed" for computation of the new job tax credit. The county where the business facility is located determines the credit amount that a business may receive for each new, full time job created. The basic amount of credit per year for each new, full time job created is $8,000 in a distressed county, $4,500 in a least developed county, $3,500 in an under developed county, $2,500 in a moderately developed county, and $1,500 in a developed county.
Least Developed
Moderately Developed
Ranking List #2: For new, full time jobs created in tax years which begin in 2003, where the job tax credit was first earned after 1995 and before June 19, 2002, and increases in such jobs.
The Department has ranked South Carolina's counties as "least developed," "under developed," "moderately developed," and "developed" for computation of the new job tax credit. The county where the business facility is located determines the credit amount that a business may receive for each new, full time job created. The basic amount of credit per year for each new, full time job created is $4,500 in a least developed county, $3,500 in an under developed county, $2,500 in a moderately developed county, and $1,500 in a developed county.
Ranking List #3: For new, full time jobs created in tax years which begin in 2003, where the job tax credit was first earned before 1996, and increases in such jobs.
The Department has ranked South Carolina's counties as "less developed," "moderately developed," and "developed" in accordance with Code Section 12-6-3360, prior to its amendment in 1996. The county where the business facility is located determines the credit amount that a business may receive for each new, full time job created. The basic amount of credit for each new, full time job created is $1,000 in a less developed county, $600 in a moderately developed county, and $300 in a developed county.
A limited liability company (LLC) is an unincorporated business association that provides its owners (members) limited liability and flexible management and financial alternatives. An LLC can provide the favorable pass-through tax treatment of partnerships and the limited personal liability of corporations. An LLC is formed when one or more initial members sign Articles of Organization and deliver that to the Secretary of State along with the filing fee.
The Secretary of State may dissolve an LLC that does not maintain its governmental filing requirements or does not file a tax return or pay tax. If an LLC is a corporation for federal income tax purposes, it is a corporation for South Carolina income tax purposes. Likewise, if an LLC is a partnership for federal income tax purposes, it is a partnership for South Carolina income tax purposes. South Carolina has adopted all of the partnership provisions (sub chapter K) of the Internal Revenue Code and IRC Section 7701 that defines partnership and corporation.
United States Treasury regulations govern how an organization is classified for federal tax purposes. There are United States Department of Treasury regulations for determining the classification of an unincorporated business organization as either a partnership or a corporation for federal income tax purposes.
These regulations replaced the prior four-factor test of:
Under these regulations an unincorporated entity can choose to be taxed as a partnership (or disregarded as an entity entire separate from its owner if it is a single member LLC) or be taxed as a corporation. This new classification process is referred to as "check the box." For South Carolina income tax purposes, the South Carolina Department of Revenue follows the "check the box" regulations.
The following definitions will be used:
° Partnership includes an LLC taxed for SC income tax purposes as a partnership.
° Partner includes any member of an LLC taxed for SC income tax purposes as a partnership.
° Corporation includes an LLC or professional or other association taxed for SC income tax purposes as a corporation.
° Shareholder includes any member of an LLC taxed for SC income tax purposes as a corporation.
° A Limited Liability Partnership (LLP) is formed when an application is filed by a majority of the partners or any one or more partners authorized to execute it, and delivered to the Secretary of State with a $100 filing fee.
An LLP's registration is effective for one year only. Each year the LLP must file a renewal application within the 60-day period preceding the expiration date.
The Secretary of State is not required to notify an LLP that its registration is up for renewal.
° A Single Member Limited Liability Partnership that is not taxed as a corporation for South Carolina income tax purposes will be ignored for all South Carolina tax purposes. Therefore, a single member who is a corporation will consider income from the Single Member LLC from one of its divisions. An individual member would consider the income from a Single Member LLC as if it were Schedule C income.
Partnerships -- The Basics
A partnership is a legal entity that is jointly owned by two or more individuals. The owners are personally responsible for all debts of the business, even those in excess of the amount invested in the business.
Liability for Returns
Every partnership in South Carolina, whether domestic or foreign, doing business or owning business in South Carolina must make a return of income on the Partnership Return of Income, form SC1065 not later than the 15th day of the fourth month following the close of the accounting period.
The income or loss of a partnership will be computed in the same manner and on the same basis as in the case of the individual.
Taxpayers carrying on business in a partnership are liable for income tax only in their individual capacity, and each partner must include in their return their distributive share, whether distributed or not, of the net income or loss of the partnership for the taxable year. If the taxable year of a partner is different from that of the partnership, the amount included will be based on upon the partnership income of the year ending with the taxpayer's taxable year.
Information to be Furnished to the Partners
A separate Schedule SC-K must be provided to each partner, reflecting the partner's proportionate share of South Carolina income. Schedule SC-K is a worksheet for making South Carolina adjustments to federal Schedule K items and showing the amount of these items that are allocated or apportioned to South Carolina. Provide each nonresident partner with a federal Form 1099-MISC with "SC only" written at the top, showing the amount of the nonresident partner's withholding.
When and Where Do I File?
A South Carolina Partnership return of income should be completed after the federal partnership return is completed, but is due no later than the 15th day of the fourth month after the close of the taxable year.
The South Carolina Department of Revenue will accept the federal extension for a partnership in lieu of SC4868.
If you intend to use the federal extension in lieu of South Carolina's extension, it is not necessary to send South Carolina a copy of the federal form by the due date of your tax return. Simply attach a copy of the federal extension when you file the tax return within the extended period.
Upon request the IRS grants partnerships an automatic three-month extension, which is honored by South Carolina, which is shorter than South Carolina's 120-day extension. The IRS requires a second request for an additional extension of up to three months (six months total), which is also honored by South Carolina.
Partners' returns are extended separately. A copy of each federal K-1 is required to be attached to form SC1065.
Partners with income or loss must file a tax return regardless of tax liability. See Schedule SC-K on information to be furnished to partners.
What Happens if You Don't File?
A taxpayer who fails to remit tax when due will be charged interest from the time the tax was due until paid in its entirety. Penalties may be applied for late payment of tax and for late filing of returns. Penalties may also be applied for negligence and for disregard of regulations.
CL-1 Initial Annual Report of CorporationsSC 616 Certification of Eligibility for South Carolina New Jobs Tax CreditSC 990-T Return of Organization Exempt from Income TaxSC 1065 Partnership Return of IncomeSC 1120 'C' Corporation Income Tax ReturnSC 1120S 'S' Corporation Income Tax ReturnSC 1120-T Tentative Corporation Tax Return and Conditional ExtensionSC 1120S-WH Withholding Tax on Nonresident Shareholders of 'S' CorporationsSC 1120TC Corporation Tax CreditsSC 1120-CDP Corporation Declaration of Estimated Tax ReturnSC 2220 Underpayment of Estimated Tax by CorporationSC1040 TC Tax CreditsSchedule TC-1 Drip/Trickle Irrigation Systems CreditSchedule TC-2 Minority Business CreditSchedule TC-3 Water Resources CreditSchedule TC-4 New Jobs Tax CreditSchedule TC-5 Scenic River Tax CreditSchedule TC-6 Infrastructure CreditSchedule TC-7 Palmetto Seed Capital CreditSchedule TC-8 Corporate Headquarters CreditSchedule TC-9 Credit for Child Care ProgramSchedule TC-10 Credit for Wages Paid to Employees Terminated Due to Base ClosureSchedule TC-11 Economic Impact Zone Property Investment CreditSchedule TC-12 Credit for Employers Hiring AFDC RecipientsSchedule TC-12A Additional Credit for Employees Hiring AFDC Recipients Schedule TC-13 Motion Picture CreditSchedule TC-13A Motion Picture Project CertificationSchedule TC-13B Motion Picture Production Facility CertificationSchedule TC-14 Community Development Tax CreditSchedule TC-15 Corporate Tax Moratorium per Section 12-10-35Schedule TC-16 Corporate Tax Moratorium per Section 12-6-3365Schedule TC-17 Recycling Property Tax CreditSchedule TC-18 Research and Development Tax CreditSchedule TC-19 Credit for Qualified Conservation Contribution of Real Property After May 31, 2001Schedule TC-20 Credit for Expenses Incurred through Brownfields Voluntary Cleanup Program
South Carolina's income tax structure follows the federal income tax laws. South Carolina generally accepts the adjustments, exemptions and most deductions allowed on your federal return. Your federal taxable income is the starting point in determining your state income tax liability.
You are required to file a South Carolina income tax return if you earn income in South Carolina and are required to file a federal return. Even if you are not required to file a federal return and you have taxes withheld from your wages, you should file a state income tax return in order to obtain a refund. For calendar year taxpayers, individual income tax returns are due on April 15 of each year.
Business income must be reported on Schedule C of the federal tax return. Attach a copy of your federal return to your state return when you file a Federal Schedule C, D, E or F
The following are examples of items that must be added back to your federal taxable income for South Carolina purposes:
For a complete list, see form SC1040 and instructions; a copy is available at the Department of Revenue website, www.sctax.org.
The following are examples of items that may be deducted from your federal taxable income for South Carolina purposes:
For a complete list of deductions, see form SC1040 and instructions; a copy is available at the Department of Revenue website, www.sctax.org.
Tax Rates
Tax rates are adjusted annually to partially offset inflation. The South Carolina 2002 tax rates indexed are:
(Rates apply to Line 2 of the SC1040 or Line 1 of the SC1040A)
"Long" method:
+ %
"Short" method:
South Carolina has a number of income tax credits, and some examples are listed below:
For a complete list, see form SC1040, SC1040TC and instructions to each; copies are available at the Department of Revenue website, www.sctax.org
Declaration of estimated tax is the method you use to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, capital gains and prizes. You may also have to pay estimated tax if enough tax is not being withheld from your salary, pension or other income. Generally you should make estimated tax payments if you figure your estimated tax liability will be $1000 or more. If your estimated tax liability will exceed $1000, you must pay in at least 90% of the tax to be shown on your current income tax return or 100% of the tax shown on your last year's income tax return, whichever is less. The 100% rule is modified to be 110% of last year's tax liability for an individual with an adjusted gross income of more than $150,000 as shown on the return for the preceding tax year.
Estimated tax payments are due April 15, June 15, September 15 and January 15 for calendar year taxpayers.
Part-Year Residents
If you moved into South Carolina during the year, you are a part-year resident. As a part-year resident, you may consider yourself a full-year resident or a nonresident. You may choose the filing method that is most advantageous to you. If you elect to be a full-year resident, file the form SC1040. Report all your income as though you were a resident for the entire year. You will be allowed a credit for taxes paid to another state. If you elect to be a nonresident, file your form SC1040 with the Schedule NR. You will be taxed only on income earned in South Carolina and will prorate your deductions and exemptions.
If you need more time to file a South Carolina income tax return, you are allowed an extension equal to the time allowed by the IRS. The first federal extension is automatic and allows you through August 15 to file your return. If you need additional time, you may request an additional extension through October 15 if you have good cause for the delay in filing. A South Carolina extension is not automatic. To receive a state extension, attach a copy of your federal extension request to your state return when you file it.
If you owe additional state income tax, you are required to file form SC4868 before April 15 and attach payment of taxes you estimate you owe. Remember that an extension only allows you additional time to file your return. Your tax must still be paid by April 15 to avoid penalty and interest.
SCnetFile will allow taxpayers to file extensions using form SC4868 on the Internet.
If you owe the state, you can pay by credit card when filing your extension ? MasterCard and Visa are accepted. Visit the Department of Revenue website www.sctax.org for more details.
In addition to mailing paper returns, South Carolina also allows electronic methods of filing individual income tax returns.
Using FastFile, South Carolina accepts electronically filed state income tax returns filed jointly with federal returns, as well as state-only filings. Refund and balance due returns are accepted electronically. Refunds may be deposited directly into your bank account.
FastFile lets you use one of four programs to file your South Carolina tax returns. Visit the Department of Revenue website at www.sctax.org for more information on each of these options. They are:
Electronic Returns Transmission
For online and electronic filing, the following returns may be electronically transmitted:
Online and State and Federal Agencies Offering Assistance
State Online Assistance
For quick and easy access to all aspects of South Carolina Government, as well as links to other local, county and national sites, visit the official South Carolina state government website at www.myscgov.com.
Simply enter a few words describing the information you need and a powerful search engine will scan thousands of state government web pages to find just the site you need. Use the custom features to focus on the issues that directly impact your business and your life.
South Carolina Business One-Stop (SCBOS) located on the www.myscgov.com state portal and contains information and forms needed for opening a business in South Carolina.
To locate the SCBOS website, go to: www.myscgov.com?Click on the Business tab ? Click on the South Carolina Business One-Stop link
Locate the information and forms needed to start your business ? SCBOS is just beginning and not all forms may be online.
State Agencies
SC Department of Labor, Licensing and RegulationDivision of Fire and Life Safety141 Monticello TrailColumbia SC 29203Telephone: (803) 896-9800Website: www.llr.state.sc.us
Secretary of StateEdgar Brown Building1205 Pendleton StreetPost Office Box 11350Columbia SC 29211Telephone: (803) 734-2158Website: www.scsos.com
SC Department of Labor, Licensing and RegulationLandmark Center3600 Forest DrivePost Office Box 11329Columbia SC 29211-1329Telephones: General Information (803) 896-4300 OSHA (803) 734-9606Website: www.llr.state.sc.us
SC Department of Labor, Licensing and Regulation110 Centerview DriveKingstree BuildingSynergy Executive ParkPost Office Box 11329Columbia SC 29211Telephone: (803) 896-4300Website: www.llr.state.sc.us
SC Employment Security Commission1550 Gadsden StreetPost Office Box 995Columbia SC 29202Telephone: (803) 737-3071Website: www.sces.org
SC Department of Health and Environmental ControlSims-Aycock Building2600 Bull StreetColumbia SC 29201Telephone: (803) 898-3432Website: www.scdhec.com
SC Department of Health and Environmental ControlOffice of Ocean and Coastal Resource ManagementCharleston Office:1362 McMillan Ave Ste 400Charleston SC 29405Telephone: (843) 744-5838
Beaufort Office:104 Parker DriveBeaufort, SC 29906Telephone (843) 846-9400
Myrtle Beach Office:1705 N. Oak Street, Suite 6Oak Street Plaza OfficesMyrtle Beach, SC 2957Telephone (843) 626-7217
SC Department of CommerceBusiness Development and Assistance DivisionPost Office Box 927Columbia SC 29202Telephone: (803) 737-0400Website: www.callsouthcarolina.com
Public Service Commission101 Executive Center DriveSaluda BuildingSynergy Executive ParkColumbia SC 29211Telephone: (803) 896-5100Website: www.psc.state.sc.us
SC Department of Consumer Affairs3600 Forest Drive, 3rd FloorPost Office Box 5757Columbia SC 29250Telephone: (800) 922-1594 or(803) 734-4200 in ColumbiaWebsite: www.myscgov.com
SC Law Enforcement DivisionRegulatory Services4400 Broad River RoadPost Office Box 21398Columbia SC 29221Telephone: (803) 896-7014Website: www.sled.state.sc.us
SC Department of Natural ResourcesLand, Water And Conservation Division2221 Devine St. Suite 222Columbia, SC 29205Telephone: (803) 734-9100Website: www.dnr.state.sc.us
SC Department of CommerceAeronautics DivisionColumbia Metropolitan Airport2553 Airport BlvdW Columbia, South Carolina 29228
PO Box 280068Columbia, South Carolina 29228-0068(803) 896-6260 or (800) 922-0574
Website: www.callsouthcarolina.com
Federal Agencies
Internal Revenue ServiceTelephone: (800) 829-1040 (statewide)Website: www.irs.gov
Federal employers' identification (FEI) numbers can also be issued at any South Carolina Department of Revenue Taxpayer Service Center. See the Directory for locations.
Social Security AdministrationStrom Thurmond Building1835 Assembly Street, 2nd FloorColumbia SC 29201Telephone: (800) 772-1213 statewide or(803) 929-7635 in Columbia
Website: www.ssa.gov
United States Department of LaborWage and Hour DivisionStrom Thurmond Building1835 Assembly Street, Room 1072Columbia SC 29201Telephone: (803) 765-5981Website: www.dol.gov
United States Small Business AdministrationSouth Carolina District OfficeStrom Thurmond Building1835 Assembly Street, Room 358Columbia SC 29201Telephone: (803) 765-5377Website: www.sba.gov
Business License - Business licenses are required for all businesses within a city or municipal district. Many counties do not have business license requirements, but it is wise to check with the county in which your business will be located. Contact city hall or county offices for more information.
Building Code - State law mandates that all jurisdictions adopt the Southern Standard Building Code Package (building, plumbing, gas, mechanical and the National Electrical Code). Adoption of all other codes must have prior approval by the South Carolina Building Code Council. The local building official should review all plans.
Building Change Permit - If changes are required in the building that houses your business, you must apply for a building change permit with the city or county building inspection department. Fees are charged based on the cost of the changes.
Zoning - The city and county zoning divisions maintain information on designated areas. Special permits may be obtained to locate a business in an area zoned for another use.
Local planning commissions usually handle requests for changes in area zoning. Local officials must approve all changes in zoned use.
Fire Prevention - The Bureau of Fire Prevention conducts fire safety inspections in all commercial buildings as required by law. The purpose of inspection is to seek out and eliminate conditions that would endanger life and property. Public education and awareness on fire safety is also a vital part of the Bureau of Fire Prevention. Contact your local fire department for more information.
Food Permit - Any food-related business, such as restaurants and grocery stores, must comply with the city, county and state food ordinances. Contact your city or county health department for additional information.
Small Business Development Centers (SBDC) provide assistance to new and existing business owners. For additional information, contact the Small Business Development Center nearest you.
State SBDC Director's Office
Frank L. Roddey SBDC of SCUniversity of South CarolinaMoore School of BusinessColumbia SC 29208Telephone: (803) 777-4907
Clemson SBDCClemson University425 Sirrine HallClemson SC 29634Telephone: (864) 656-3227
Greenville SBDCMerovan Center1200 Woodruff Road, Ste C-38Greenville SC 29607Telephone: (864) 297-1016
Greenwood SBDCUpper Savannah Area Office600 Monument Street, Ste 106Greenwood SC 29648Telephone: (864) 943-8028
Spartanburg Area SBDCSpartanburg Human Resources Center142 South Dean Street, Suite 216Spartanburg, SC, 29302Telephone: (864) 316-9162(864) 596-3602
University of South Carolina-Aiken SBDC471 University Parkway, Box 9School of BusinessAiken, SC 29801Telephone: (803) 641-3646
University of South Carolina SBDC801 Carteret StreetBeaufort SC 29902Telephone: (843) 521-4143Charleston Area SBDC5900 Core Drive, Suite 104North Charleston, SC 29406(843) 740-6160
University of South Carolina SBDCMoore School of BusinessColumbia SC 29208Telephone: (803) 777-5118
Hilton Head SBDC1 College Center DriveHilton Head Island SC 29928Telephone: (843) 842-3552
Sumter SBDCUniversity of South Carolina200 Miller RoadSumter SC 29150Telephone: (803) 938-3833
Myrtle Beach Area SBDCMyrtle Square Mall, # 112501 North Kings HighwayMyrtle Beach, SC 29577
Winthrop University SBDC 118 Thurmond BuildingRock Hill SC 29733Telephone: (803) 323-2283
Florence-Darlington Tech SBDC2715 West Lucas StreetFlorence SC 29501Telephone: (843) 661-8256
South Carolina's occupational and professional licensing boards are responsible for the examination and licensing of people in various industries. Most boards require that candidates meet certain educational and/or technical background requirements before becoming licensed. Call the appropriate board at the telephone number listed (below) for specific information.
Each of the licensing boards listed below are located in Columbia and all of the telephone numbers are Area Code 803.
Licensing Board
Telephone Number
Architectural Examiners
Auctioneers Commission
Barber Examiners
Chiropractic Examiners
Engineers and Land Surveyors
Environmental Systems Operators
Funeral Services
Landscape Architects
Law Examiners
Long-term Health Care Administrators
Manufactured Housing
Massage/Bodywork Therapy
Medical Examiners
Occupational Therapy
Physical Therapy
Pilotage-Port of Charleston Harbor Pilot
Podiatry Examiners
Real Estate
Residential Home Builders
Social Work
Soil Classifiers
Speech, Language, Audiology & Pathology
Veterinary Medical Examiners
Architectural Examiners
Auctioneers Commission
Barber Examiners
Chiropractic Examiners
Engineers and Land Surveyors
Environmental Systems Operators
Funeral Services
Landscape Architects
Law Examiners
Long-term Health Care Administrators
Massage/Bodywork Therapy
Medical Examiners
Occupational Therapy
Physical Therapy
Pilotage-Port of Charleston Harbor Pilot
Podiatry Examiners
Real Estate
Residential Home Builders
Social Work
Soil Classifiers
Speech, Language, Audiology & Pathology
Veterinary Medical Examiners
County Auditors, Assessors and Treasurers
Personal Property
Forms Request System
(Fax on Demand)
(800) 768-3676 (statewide)
(803) 898-5320 (in Columbia)
The South Carolina Department of Revenue forms request system (fax on demand) allows you to call using either your fax telephone or regular touch tone telephone to order single copies of forms. Dial the appropriate telephone number listed above and follow the menu.
If you call from your fax telephone, the system faxes the forms immediately. If you use a regular touch-tone telephone, the system will request a fax number and will fax the forms after normal business hours (11:00p.m. - 8:00a.m.). You also have the option of leaving a message on voice mail and your forms will be mailed to you within three (3) working days.
You may also request the fax menu listing all information available on the forms request system. This menu will be sent to you immediately whether you are using a fax or touchtone telephone. A maximum of six (6) forms may be requested in any one call. The system will make up to three (3) attempts to fax the requested forms.
If you do not have a plain paper fax machine, you must copy your document onto plain paper before submitting to the South Carolina Department of Revenue. We are unable to process returns that are requested on thermal fax paper.
Form #
Form Name
Document Retrieval Number
Long Form
SC 1040l
Long Form Instructions
Short Form
Tax Tables
Amended Return
Request for Extension of Time
Department of Revenue Telephone Directory
(Unless otherwise indicated, all numbers use area code 803)
Director, Burnet Maybank, III
Deputy Director, Harry Cooper
Administrator - Robert Anderson
Manager, Office Audit
Manager, Non-Resident Audit
Manager, Appeals & Audit Review
Nexus/Discovery Unit
Audit Techniques & Technology
Estate and Gift?Any Question
Administrator - John Sullivan
Manager, Central Office Collections
Administrator ? Rick Handel
Administrator ? Nick Sipe
Bingo Enforcement
Alcoholic Beverage Licensing Litigation
Alcoholic Beverage License (Beer, Wine & Alcoholic Liquors)
Administrator - Jan Key
Corporate Income Tax
Delinquents, Notices, And Warrants
Debt Match And Reinstatements
Technical Corporate, Partnership, Withholding & Fiduciary Questions
Electronic Filing (Individual Income Tax)
Electronic Fund Transfers (EFT)?all business taxes except Sales
Electronic Data Interchange (EDI)
Fed/State Electronic Filing (Taxpayers)
Fed/State Electronic Filing (Electronic Return Originators ONLY)
Magnetic Media Filing (W-2)
898-5709 or
SC Telefile
Business Tax Telefile (Registration & Filing)
Business Tax Telefile (Sales Tax Help Line)
Business Tax Telefile (Withholding Tax Help Line)
Business Tax Telefile Help Line
E-mail -- email@example.com
Automated Refund Inquiries
Copies Of Tax Returns Requested By Taxpayers
Debt Matches Under The Offset Program
# Shown On Notice To Taxpayer
Fax On Demand
or 898-5320
General Information
Individual Declarations Of Estimated Tax
Notice Of Adjustments And Information Letters
(Computer Generated)
Problem Resolution Office Any Problem That Cannot Be Resolved In The Normal Process
RAR (Revenue Agent Reports)
Refund Inquiries
Request For Forms
Tax Helpline
Outside Columbia Dialing Area
898-5280 or
(800) 763-1295
Technical Questions ? Individual
Electric Power
Farm Gas Tax Refunds
Hospital Tax (Indigent Care)
Motor Fuel Refunds
Motor Carrier Property Tax
PSC Utility Tax
Primary Forest
Solid Waste Tax
Failure to File
Form St 236 Or Refunds
General Questions
Local Option Sales Tax
Rental Surcharge
Technical Questions on Sales, Use, Local Option, Accommodation & Miscellaneous Tax Questions
Registration Packet - Fax On Demand
Booklet Reorder
Address Correction
Balance Due
Nonresident Withholding
Enterprise Zone Act/Rural Development Act Credit
Registration/Database Maintenance
Register For Sales, Use, Withholding, Corporate, And Highway Use Taxes
Administrator ? Sandy Houck
Business Personal Property & Manufacturing Assessments
Technical Questions
3 Southpark Circle, Ste. 202, Charleston SC 29407
301 Gervais Street, Columbia SC 29214
1452 West Evans Street, Florence SC 29502
211 Century Drive, Ste. 210-B, Greenville SC 29603
Rock Hill
454 South Anderson Road, Ste. 202, Business and Technology Center, Rock Hill, SC 29730
Tax Returns and Other Correspondence should be mailed to:
SC Department of Revenue
Post Office Box 125
Columbia SC 29214
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