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use tax

Use tax is a tax imposed by state taxing authorities on the purchase of goods outside the taxpayer’s state of residence when sales tax is not collected on the transaction. Use taxes are generally designed to discourage the purchase of goods that are not subject to sales tax.

In South Carolina, use tax complements the state sales tax and is designed to ensure that the state collects tax revenue on purchases made by its residents from out-of-state sellers where sales tax was not charged at the time of purchase. This applies to items bought over the internet, through mail-order catalogs, or from other states. The South Carolina use tax rate is the same as the sales tax rate, which is 6% at the state level as of the knowledge cutoff in 2023. However, local jurisdictions may impose additional use taxes. Residents are required to report and pay use taxes typically on their state income tax returns if the seller does not collect South Carolina sales tax. Failure to pay use tax can result in penalties and interest. Businesses that make purchases for use in South Carolina are also subject to use tax if sales tax was not paid at the point of purchase.

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Taxes

use tax

Individual & Family Legal Plan

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South-Carolina State Code

Taxes

use tax

Articles

South-Carolina State Code