Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In South Carolina, sales tax is a state-level tax imposed on the sale of goods and services, which is also applicable at the local level with varying rates. The state sales tax rate is 6%, but counties have the option to impose additional local sales taxes for specific purposes, such as local capital project taxes, education capital improvements, and transportation taxes. These local taxes can make the total sales tax rate higher in some areas. Sales tax is generally collected by the retailer at the point of sale and then remitted to the South Carolina Department of Revenue. Certain goods and services may be exempt from sales tax or taxed at a reduced rate, such as unprepared food, prescription medications, and electricity. It's important for businesses to be aware of and comply with the sales tax regulations to avoid penalties and interest for late or incorrect filings.