Sales Tax Holiday Friday Through Sunday

By Kathryn Foessel
Producer
Published: July 31, 2008

COLUMBIA, S.C. (AP) - Shoppers across South Carolina are getting ready to save as the state holds its ninth sales tax holiday. Starting 12:01 a.m. Friday, the state’s sales tax of six cents on the dollar and any local sales tax will be removed from clothing, school supplies, computers and dozens of other items. The
tax break ends midnight Sunday. The tax-free list includes a number of stranger items like corsets, fur coats, wet suits, bridal gowns and ski masks. State
Revenue Department officials say that’s because they used general categories of items when they created the tax free list in 2000. Agency spokeswoman Adrienne Fairwell says the state typically loses just under $3 million in sales tax during the weekend.

Exhaustive list of tax-free items:

State of South Carolina
Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org
SC REVENUE RULING 05-9
SUBJECT: Sales Tax Holiday
(Sales and Use Tax)
EFFECTIVE DATE: Beginning 12:01 a.m. on the first Friday in August and ending at twelve midnight the following Sunday
SUPERSEDES: For sales tax holidays for 2005 and thereafter, this advisory opinion supersedes all previous advisory opinions and any oral directives in conflict herewith.
REFERENCES: S. C. Code Ann. Section 12-36-2120(57) (Supp. 2004)
House Bill 3768, Section 57, of 2005 (Enacted June 7, 2005)
AUTHORITY: S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2004)
SC Revenue Procedure #03-1
SCOPE: The purpose of a Revenue Ruling is to provide guidance to the public and to Department personnel. It is a written statement issued to apply principles of tax law to a specific set of facts or a general category of taxpayers. A Revenue Ruling does not have the force or effect of law, and is not binding on the public. It is, however, the Department s position and is binding on agency personnel until superseded or modified by a change in statute, regulation, court decision, or advisory opinion.
LAW
Code Section 12-36-2120(57) exempts from the sales and use tax:
(a) sales taking place during a period beginning 12:01 a.m. on the first Friday in August and ending at twelve midnight the following Sunday of:
(i) clothing;
(ii) clothing accessories including, but not limited to, hats, scarves, hosiery, and handbags;
(iii) footwear;
(iv) school supplies including, but not limited to, pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators;
(v) computers, printers and printer supplies, and computer software;
(vi) bath wash clothes, blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillow cases.
(b) The exemption allowed by this item does not apply to:
(i) sales of jewelry, cosmetics, eyewear, wallets, watches;
(ii) sales of furniture;
(iii) a sale of an item placed on layaway or similar deferred payment and delivery plan however described;
(iv) rental of clothing or footwear;
(v) a sale or lease of an item for use in a trade or business.
(c) Before July tenth of each year, the department shall publish and make available to the public and retailers a list of those articles qualifying for the exemption allowed by this item.
EXAMPLES OF EXEMPT AND NON-EXEMPT ITEMS
Pursuant to Code Section 12-36-2120(57) cited above, the department publishes the following list as examples of items it believes to be exempt and non-exempt:
Exempt items (Provided the item (1) is not used in a trade or business or (2) is not placed on layaway or similar deferred payment and delivery plan or (3) is not clothing or footwear that is rented) include:
Adult diapers
Aerobic clothing
Antique clothing
Aprons
Athletic or sport uniforms or clothing (but not equipment such as mitts, helmets and pads)
Baby bibs
Baby clothes
Baby diapers (cloth or disposable)
Baby shoes
Bandannas
Barrettes
Bath mats
Bath rugs
Bath towels (all sizes, including beach towels)
Bath wash cloths
Bathing caps
Bathing suits
Bathing trunks
Beach capes and coats
Bed comforters and bed comforter sets
Bed duvets and covers
Bed linens, including baby bumper pads, canopies, baby crib padding, bed skirts, box spring covers, dust ruffles, mattress pads, mattress toppers, pillow covers, and shams (box springs, drapes, mattresses, table cloths, and window curtains and other window treatments are taxable)
Bed pillow cases
Bed pillows (e.g. baby pillows, body pillows, husband pillows, throw pillows)
Bed sheets and bed sheet sets
Bed spreads
Belt buckles
Belts/suspenders
Blankets (e.g. afghan, baby, electric, and throw)
Blouses
Bobby pins
Bonnets
Boots (climbing, hiking, riding, ski, waders, fishing, cowboy)
Bow ties
Bras
Bridal gowns and veils (must be sold; rentals are taxable)
Capri pants
Caps
Coats, capes and wraps
Computer hardware service contracts sold in conjunction with computers
Computer software
Computer software service contracts sold in conjunction with computer software
Computer software service contracts when the true object of the contract is to obtain computer software updates during the contract period
Computers (computer parts, such as computer monitors, keyboards and scanners, when not sold in conjunction with a central processing unit (CPU) and accessories are taxable)1
Corset laces
Corsets
Costumes (must be sold; rentals are taxable)
Coveralls
Daily planners or organizers when used by school children as a school supply
Dress shields
Dresses
Earmuffs
Elastic ponytail holders
Fishing boots
Formal clothing (must be sold; rentals are taxable)
Furs
Galoshes
Garters/garter belts
1 Since sales tax is a “transaction tax,“ and since the law did not exempt computer parts (only computers), then the sale of a computer monitor, keyboard, or scanner by itself would not be exempt during the sales tax holiday. If a monitor, keyboard or scanner is purchased as part of a package which included the computer processing unit (CPU), then that is one transaction to purchase a computer and the sale of the packaged unit (CPU, monitor, keyboard, scanner) would be exempt. 3
Girdles
Gloves (batting, bicycle, dress, garden, golf, ski, tennis)
Gowns
Graduation caps and gowns (must be sold; rentals are taxable)
Gym suits
Hair bows
Hair clips
Hand muffs
Handbags
Handkerchiefs
Hats
Headbands
Hosiery
Hunting vests
Ice skates (rentals are taxable)
In-line skates (rentals are taxable)
Jackets
Jeans
Jogging suits
Jumpers
Leg warmers
Leotards and tights
Lingerie
Mittens
Nightgowns
Overshoes
Pajamas
Pants
Pantsuits
Pantyhose
Personal Digital Assistants (hand-held computers used as daily planners)
Pillow cases
Pillows (all types)
Ponchos
Printer supplies (replaceable ink cartridges used in printers are exempt from tax as “printer supplies”)
Printers (replacement parts are taxable)
Prom dress (must be sold; rentals are taxable)
Purses
Raincoats
Rainwear
Riding pants
Robes
Roller skates (provided the skates are permanently attached to the boots) (rentals are taxable)
Sandals
Scarves
School supplies2 including, but not limited to, pens, pencils, paper, binders, notebooks, books3, blue books4, bookbags, lunchboxes, musical instruments5 and calculators (school office and janitorial supplies are taxable)
School uniforms
Scout uniforms
Shawls and wraps
Shirts
Shoes (ballet, baseball, bicycle, boat, boots, bowling (taxed if rented), cleated, cross trainers, flip-flops, football, golf, jazz/dance, soccer, track, in-line skates, ice skates, running, etc.) (rentals are taxable)
Shorts
Shoulder pads for dresses, jackets, etc. (but not athletic or sport protective pads)
Shower curtains and liners (shower curtain hooks and rings and shower curtain rods are taxable)
Ski boots (snow) (rentals are taxable)
Ski masks
Ski suits (snow)
Skin diving suits
Skirts
Sleepwear
Slippers
Slips
Sneakers
Socks
Sport clothing and uniforms (but not equipment such as mitts, helmets, and pads)
Sport jacket
Stockings
Suits
Support hosiery
Suspenders
2 It is the opinion of the department that “school supplies” are items used in the classroom or at home with respect to school assignments and include, but are not limited to, pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators.
Items such as refrigerators, toiletries, bicycles and food purchased by college students are not school supplies and not exempt from the tax.
Attached as Exhibit “A” is a statement that a retailer may use to determine if a customer is purchasing an item as a school supply. The form should be attached to the bill of sales for record keeping purposes. Please note that this statement is not required and is merely provided by the department to assist retailers during the sales tax holiday.
3 Code Section 12-36-2120(2)(a) already exempts from the tax books used as part of a course of study in elementary schools, high schools and institutions of higher learning. The exemption for books during the “sales tax holiday” applies to other books (e.g. dictionaries, thesauruses, encyclopedias, and books used for science projects, book reports, extra credit, and other reading requirements) used for school purposes.
4 “Blue books” are blank notebooks with blue covers which are typically used to write college examinations.
5 Musical instruments are exempt as school supplies if used in the classroom or at home with respect to school assignments. 5
Sweat pants
Sweat shirts
Sweat suits
Sweatbands
Sweaters
Ties/neckwear
Tights
Towels of all types and sizes, including bath, beach, kitchen, and sport towels (paper towels are taxable)
T-shirts
Tuxedo (must be sold; rentals are taxable)
Umbrellas
Underwear
Waders
Wet and dry suits
Note: Fabric, thread, yarn, buttons, snaps, hooks, zippers and like items which become a physical component part of clothing or bed linens, blankets, comforters, and other exempt items listed above are exempt from tax.
The following items are not exempt:
Any clothing or footwear that is rented
Any item (whether sold or leased) used in a trade or business
Any item placed on layaway or similar deferred payment and delivery plan
Backpacks for hiking and camping (bookbags for school are exempt)
Bathroom accessories or supplies (soap, shower curtain hooks and rings, shower curtain rods, toothbrush holders, towel holders, tissue box covers, toilet paper, wastebaskets)
Box springs
Briefcases
Change purse
Clocks (alarms clocks, wall clocks, etc.)
Clothing that is rented
Computer parts (such as computer monitors, keyboards and scanners when not sold in conjunction with a central processing unit (CPU)) and accessories other than printers and printer supplies (computers, computer software, printers, and printer supplies are exempt)6
Cookware
Cosmetics
Costume rentals (rentals are taxable; must be sold to be exempt)
Daily planners or organizers (whether or not such include a calculator) when not used by school children as a school supply
Drapes
Employee uniforms
6 See footnote #1.
Eyewear
Footwear that is rented
Formal clothing that is rented
Furniture
Gift wrapping paper
Glasses
Goggles
Golf clubs
Greeting cards
Hardware (hand tools, power tools, etc.)
Health food supplements
Helmets (sport, motorcycle, bicycle, etc.)
Hobby equipment, supplies and toys
Housewares
Jewelry
Key cases
Mattresses
Mitts (baseball fielder’s, hockey, etc.) (batting, bicycle, dress, garden, golf, ski, tennis, work gloves are exempt)
Music tapes, records and compact discs
Paper products that are not school supplies (greeting cards, gift wrapping paper, etc.)
Paper towels
Personal flotation devices
Printer replacement parts (printers are exempt)
Protective masks and goggles (athletic, sport, or occupational)
Roller skates not permanently attached to the boot
Safety clothing for use in a trade or business
Safety glasses and goggles
Safety shoes for use in a trade or business
School office and janitorial supplies
Sewing accessories
Sheet stretchers
Shin guards and padding
Shoulder pads (football, hockey, etc.)
Shower curtain hooks and rings
Shower curtain rods
Sleeping bags
Sporting equipment (baseball mitts, golf clubs, helmets, hockey mitts, life jackets and vests, masks, pads, swim fins, swimming masks and goggles)
Stereo equipment
Sunglasses
Table cloths
Table placemats and other table supplies (napkins, napkin holders)
Tissue box covers
Toilet paper
Toothbrush holders
Towel holders
Toys
Vitamins
Wallets
Wastebaskets
Watch bands
Watches
Wigs
Window curtains
Window treatments (curtains, drapes, shades, valances)
If you have any questions, you may call the Department of Revenue at (803) 898-5788 or e-mail the Department at .
SOUTH CAROLINA DEPARTMENT OF REVENUE
s/Burnet R. Maybank III
Burnet R. Maybank III, Director
June 29 , 2005
Columbia, South Carolina
EXHIBIT “A”
School Supplies - Information and Purchaser’s Statement
It is the opinion of the department that “school supplies” are items used in the classroom or at home with respect to school assignments and include, but are not limited to, pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators.
Items such as refrigerators, toiletries, bicycles and food purchased by college students are not school supplies and not exempt from the tax.
The following is a statement that a retailer may use to determine if a customer is purchasing an item as a school supply. The form should be attached to the bill of sale for record keeping purposes. Please note that this statement is not required and is merely provided by the department to assist retailers during the sales tax holiday.
************************************************************************
I state that the below-listed item will be used as a school supply and therefore is exempt from the sales tax. I further understand that if it is later determined that it is not used as a school supply and the tax is due, I will reimburse the retailer for the tax.
________________________________
Item purchased
________________________________
Signature of purchaser
August____, _____