S.C. Code § 12-36-90

Current through 2024 Act No. 225.

Section 12-36-90 - "Gross proceeds of sales"

Gross proceeds of sales, or any similar term, means the value proceeding or accruing from the sale, lease, or rental of tangible personal property.

(1) The term includes:

(a) the proceeds from the sale of property sold on consignment by the taxpayer, including property sold through a marketplace by a marketplace facilitator;

(b) the proceeds from the sale of tangible personal property without any deduction for:

(i) the cost of goods sold;

(ii) the cost of materials, labor, or service;

(iii) interest paid;

(iv) losses;

(v) transportation costs;

(vi) manufacturers or importers excise taxes imposed by the United States; or

(vii) any other expenses;

(c) the fair market value of tangible personal property previously purchased at wholesale which is withdrawn from the business or stock and used or consumed in connection with the business or used or consumed by any person withdrawing it, except for:

(i) withdrawal of tangible personal property previously withdrawn and taxed by such business or person;

(ii) tangible personal property which becomes an ingredient or component part of tangible personal property manufactured or compounded for sale;

(iii) tangible personal property replacing defective parts underwritten warranty contracts if:

(A) the warranty contract is given without charge at the time of original purchase of the defective property;

(B) the tax was paid on the sale of the defective part or on the sale of the property of which the defective part was a component; and

(C) the warrantee is not charged for any labor or materials;

(iv) an automobile furnished without charge to a high school for use solely in student driver training programs;

(v) a new motor vehicle used by a dealer as a demonstrator.

(2) The term does not include:

(a) a cash discount allowed and taken on sales;

(b) the sales price of property returned by customers when the full sales price is refunded in cash or by credit;

(c) the value allowed for secondhand property transferred to the vendor as a trade-in;

(d) the amount of any tax imposed by the United States with respect to retail sales, whether imposed upon the retailer or the consumer, except for manufacturers or importers excise taxes;

(e) a motor vehicle operated with a dealer, transporter, or manufacturer, or education license plate and used in accordance with the provisions of Section 56-3-2320 or 56-3-2330;

(f) that portion of a charge taxed under Section 12-36-910(B)(3) or 12-36-1310(B)(3) attributable to the cost set by statute for a governmental license or permit;

(g) fees imposed on the sale of motor oil, new tires, lead-acid batteries, and white goods pursuant to Article 1, Chapter 96 of Title 44, including the refundable deposit when a lead-acid battery core is not returned to a retailer;

(h) the sales price, not including sales tax, of property on sales which are actually charged off as bad debts or uncollectible accounts for state income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for state income tax purposes may take a deduction for the sales price charged off as a bad debt or uncollectible account on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid. The deduction allowed by this provision must be taken within one year of the month the amount was determined to be a bad debt or uncollectible account;

(i) interest, fees, or charges however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, whether or not sales tax is required to be paid on the underlying electricity or natural gas bill;

(j) the environmental surcharge imposed pursuant to Section 44-56-450;

(k) the alcoholic liquor by the drink excise tax imposed by Section 12-33-245;

(l) amounts received from a buydown. For purposes of this subitem, "buydown" means an agreement between a retailer and a manufacturer or wholesaler in which the retailer receives a payment from the manufacturer or wholesaler that requires the retailer to reduce the sales price of the manufacturer's or wholesaler's product to the retail purchaser. This subitem does not apply to amounts received by a retailer from a retail sales transaction in which a retail purchaser uses a manufacturer's or wholesaler's coupon.

S.C. Code § 12-36-90

Amended by 2021 S.C. Acts, Act No. 18 (HB 3726),s 1, eff. 4/16/2021.

Amended by 2019 S.C. Acts, Act No. 21 (SB 214),s 4, eff. 4/26/2019.

Amended by 2011 S.C. Acts, Act No. 32 (SB 36), s 2, eff. 6/8/2011.

2019 Act No. 21 (S.214), Section 4, eff 4/26/2019; 2011 Act No. 32, Sections 2.A.1, 2.A.2, eff 9/1/2011; 2006 Act No. 386, Section 20.A, eff 10/1/2005; 2005 Act No. 161, Section 19.A, eff 10/1/2005; 2005 Act No. 139, Section 4, eff 1/1/2006; 2004 Act No. 237, Section 1, eff 5/24/2004; 2001 Act No. 89, Section 63, eff 7/20/2001, applicable with respect to retail sales occurring on or after that date; 2001 Act No. 89, Section 23, eff 9/1/2001; 2001 Act No. 77, Section 2.A, eff 7/20/2001; 1999 Act No. 100, Part II, Section 30; 1996 Act No. 431, Section 36; 1994 Act No. 497, Part II, Section 70C; 1994 Act No. 427, Section 1; 1993 Act No. 164, Part II, Section 105D; 1990 Act No. 612, Part II, Section 74A.

2001 Act No. 77, Section 2.B., provides as follows:

"Notwithstanding the general effective date of this act, this section [adding subsection (2)(i)] takes effect upon approval of this act by the Governor and applies with respect to retail sales occurring on or after that date and sales before that date for all periods remaining open for the assessment of taxes by agreement or by operation of law. However, a refund is not due a taxpayer of sales and use tax paid on interest, fees, or charges, however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, before the effective date of this section."

2004 Act No. 237, Section 11, provides in part as follows:

"The repeal or amendment of a code section by this act does not release or extinguish any tax, fee, interest, penalty, forfeiture, or liability for any period prior to the repeal or amendment. The repealed or amended code section or act must be treated as remaining in force for the purpose of sustaining any proper action or prosecution for the enforcement of the tax, fee, interest, penalty, forfeiture, or liability."

2005 Act No. 161, Section 19.D, provides as follows:

"This SECTION takes effect the first day of the fourth month after the approval of the Governor [became law without the Governor's signature on June 9, 2005]."

2011 Act No. 32, Section 2.E., provides as follows:

"Notwithstanding the general effective date provided in this act, the provisions of this section take effect on the first day of the third month beginning after the date of approval of this act."

2019 Act No. 21, Section 1, provides as follows:

"SECTION 1. The General Assembly finds:

"(1) the South Carolina Sales and Use Tax Act requires any person engaged in business as a retailer to remit the sales and use tax on all retail sales of tangible personal property not otherwise excluded or exempted from the tax. This requirement applies to all retail sales of tangible personal property by the retailer, whether the tangible personal property is owned by the retailer or another person. Retailers selling tangible personal property at retail on consignment, by auction, or in any other manner must remit the sales and use tax on such retail sales;

"(2) the Internet marketplaces where a person sells tangible personal property at retail by listing or advertising, or allowing the listing or advertising of, another person's products on an online marketplace and collects or processes the payment from the customer are retailers required to remit the sales and use tax on such retail sales under the provisions of South Carolina sales and use tax law;

"(3) with the changing economy and ever expanding role of the Internet in the retail market, the longstanding requirement in the sales and use tax law that a retailer remit the tax on retail sales of tangible personal property owned by another person must apply to all retailers, including both Internet retailers and brick and mortar retailers;

"(4) retailers selling another person's tangible personal property on the Internet must clearly understand and be informed of their requirements to remit the sales and use tax in the same manner as retailers selling another person's tangible personal property in a brick and mortar store; and

"(5) this act shall not be construed as a statement concerning the applicability of the South Carolina Sales and Use Tax Act to any sales and use tax liability in matters currently in litigation or being audited."

Code Commissioner's Note

2013 Act No. 30 rewrote Article 4, Chapter 56, Title 44. The environmental surcharge referenced in subsection (2)(j) is now provided by Section 44-56-450, instead of Section 44-56-430. This reference in the text has been changed.