SALES TAX AND TAX EXEMPTIONS
South Carolina’s corporate citizens pay one of the lowest sales and use tax rates at 6 percent. The county also imposes a 1 percent Education Capital Improvement tax and a 1 percent local option sales tax.
Plus, South Carolina offers a number of exemptions that reduce both upfront costs and recurring costs on equipment:
- Manufacturing production machinery and applicable repair parts.
- Manufacturing materials that become an integral part of the finished product.
- Industrial electricity and other fuels used in manufacturing tangible personal property.
- Research and development equipment.
- Manufacturers’ air, water, and noise pollution control equipment.
- Material handling equipment for manufacturing projects investing $35 million or more.
- Packaging materials.
- Long distance telecommunication services, including 800 services.
- Construction materials used in the construction of a manufacturing or distribution facility that invests at least $100 million over an 18 month period.
In addition to the sales tax exemptions, South Carolina further reduces your company’s tax burden by providing a maximum sales tax of $300 on the sale or lease of automobiles, trucks, boats, and aircraft.