Agency: SC Dept of Revenue
Contact Person: John McCormack
Tel. No.: (803) 898-5140
Fax No.: (803) 898-5446
See enclosed copy of SC Information Letter #89-12 for a list of the non-profit Organizations that are entitled to the exemption.
1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?
1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.
See enclosed copies of SC Revenue Procedure #89-5 and SC Information Letter #89-12.
South Carolina does not exempt specific products for fundraising purposes; however, sales by certain non-profit organizations are exempt. See Q1.
2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?
2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.
No limitation, except that the net proceeds must be used exclusively for exempt purposes and no benefit may inure to any individual.
The procedure can be found in SC Revenue Procedure #89-5
The fundraising group (e.g., school, PTA, church)
The South Carolina sales tax is imposed upon the person engaged in the business of selling tangible personal property at retail (the retailer). See Code Section 12-36-910.
The South Carolina use tax is imposed upon the person using, consuming, or storing the tangible personal property purchased at retail. The seller, if nexus exist, can be required to collect the use tax from the purchaser.
Price paid by consumer to fundraising group
The South Carolina sales tax is imposed upon the "gross proceeds of sales." See Code Sections 12-36-910 and 12-36-90.
The South Carolina use tax is imposed upon the "sales price". See Code Sections 12-36-1310 and 12-36-130.
SC Revenue Ruling #98-16 is available through the SC DOR web site at http://www.sctax.org under Tax Policy (Adv.Opinions).