Tax Law

Recent Posts

South Carolina Reminds Marketplace Facilitators of Responsibility for COVID-19 Surcharges
Posted on 20 Aug 2020 by Eversheds Sutherland LLP

South Carolina Information Letter No. 20-23 clarified that COVID-19-related surcharges, takeout charges, and the like are subject to sales tax. The information letter, released August 5, “remind[ed]” taxpayers that the 6% sales tax applies to “gross proceeds... Read More

Read This! South Carolina Court of Appeals Holds Book Club Membership Fees Are Subject to Sales Tax
Posted on 24 Jun 2020 by Eversheds Sutherland LLP

The South Carolina Court of Appeals affirmed the Administrative Law Court’s holding that proceeds from a book retailer’s sales of book club memberships should have been included in the retailer’s “gross proceeds of sales” and subject to sales tax. The... Read More

Peer-to-Peer Car Rentals Subject to South Carolina Sales Tax
Posted on 13 Apr 2020 by Eversheds Sutherland LLP

In a recent private letter ruling, the South Carolina Department of Revenue concluded that a motor vehicle rental company is responsible for remitting sales tax on short-term vehicle rentals entered into through its online peer-to-peer rental program... Read More

South Carolina Issues PLR Guidance Finding Car Rental Company Responsible for Sales Tax
Posted on 10 Apr 2020 by Eversheds Sutherland LLP

On March 31, the South Carolina Department of Revenue issued a private letter ruling (PLR) finding that a car rental company in the state is responsible for sales tax on short-term rentals because it qualifies as a marketplace facilitator. The DOR determined... Read More

South Carolina Gets SaaS-y, Taxes Software Subscription Services
Posted on 3 Feb 2020 by Eversheds Sutherland LLP

In a recent private letter ruling, the South Carolina Department of Revenue held that software subscription services are tangible personal property subject to sales and use taxes. A software company that provides a cloud-based business management and... Read More

Survey Says: Online Survey Results Not a Taxable Communication Service in South Carolina
Posted on 12 Jul 2019 by Eversheds Sutherland LLP

The South Carolina Department of Revenue issued a private letter ruling advising a company that its charges for developing and conducting surveys tailored to its clients’ needs are not subject to sales and use tax as communications services. Although... Read More

South Carolina Administrative Law Court Holds it May Not Enforce Summons for Delivery Records Issued to North Carolina Freight Carrier
Posted on 10 Jul 2019 by Eversheds Sutherland LLP

The South Carolina Administrative Law Court (ALC) held that it could not enforce a Department of Revenue (Department) summons for delivery records issued to a North Carolina freight carrier that regularly transported out-of-state furniture into South... Read More

Incidentally, Damage Waivers Are Subject to South Carolina Sales Tax
Posted on 29 Mar 2019 by Eversheds Sutherland LLP

The South Carolina Court of Appeals upheld the imposition of sales tax on sales of optional “waivers,” which were sold to renters and relieved them from liability of damaged or stolen rental property. Rent-A-Center East, Inc. and Rent Way, Inc. (collectively... Read More

Incidentally, Damage Waivers Are Subject to South Carolina Sales Tax
Posted on 29 Mar 2019 by Eversheds Sutherland LLP

The South Carolina Court of Appeals upheld the imposition of sales tax on sales of optional “waivers,” which were sold to renters and relieved them from liability of damaged or stolen rental property. Rent-A-Center East, Inc. and Rent Way, Inc. (collectively... Read More

Don’t Bank on It: South Carolina Administrative Law Court Holds Banks Not Allowed to Utilize NOL Carryforwards
Posted on 23 Jan 2019 by Eversheds Sutherland LLP

The South Carolina Administrative Law Court found that the taxpayer bank could not deduct net operating loss (NOL) carryforwards when computing its bank tax liability. The taxpayer argued that banks should be allowed to deduct NOLs regardless of whether... Read More

Eversheds Sutherland SALT Scoreboard Publication–Third Quarter 2018
Posted on 1 Nov 2018 by Eversheds Sutherland LLP

This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT... Read More

South Carolina Administrative Law Court Rules Prepaid Unlimited Cell Phone Service Taxable
Posted on 8 Oct 2018 by Eversheds Sutherland LLP

The South Carolina Administrative Law Court ruled that the taxpayer was required to collect sales tax on its retail sales of prepaid cellular telephone service.  The taxpayer argued that its sales did not constitute “prepaid wireless calling arrangements... Read More

The GOP Offers a Sound Tax Reform Program in South Carolina
Posted on 10 Mar 2012 by David Brunori

The Republicans in the South Carolina House are preparing a significant reform plan that will vastly improve the state's tax system. Although details are sketchy, the plan will broaden the sales tax base by eliminating two thirds of the exemptions... Read More

Statutory Apportionment and Burdens of Proof: CarMax West
Posted on 2 May 2012 by Neil Aragones

In March, the Court of Appeals of South Carolina decided an interesting case involving a corporation's use of South Carolina's statutory standard apportionment formula in calculating the corporation's taxable state income. [See CarMax Auto... Read More

The GOP Offers a Sound Tax Reform Program in South Carolina
Posted on 10 Mar 2012 by David Brunori

The Republicans in the South Carolina House are preparing a significant reform plan that will vastly improve the state's tax system. Although details are sketchy, the plan will broaden the sales tax base by eliminating two thirds of the exemptions... Read More