What qualifies a sale for the unprepared food exemption?

Foods eligible for the unprepared food exemption (SC Code § 12-36-2120(75)) include:

• Any food intended to be eaten at home by people, including snacks, beverages and seasonings;
• Seeds and plants intended to grow food (not birdseed or seeds to grow flowers); and,
• Cold items, which may include salads or sandwiches, intended to be eaten at home by people and that are not considered "prepared meals or food" as discussed below.

Food and other items which are not eligible for the unprepared food exemption (SC Code §12-36-2120(75))  and are, therefore, subject to the full state Sales and Use Tax rate (unless otherwise exempt) include:

• Alcoholic beverages, such as beer, wine, or liquor;
• Hot beverages ready-to-drink such as coffee;
• Tobacco;
• Hot foods ready to eat;
• Foods designed to be heated in the store;
• Hot and cold food to be eaten at a lunch counter, in a dining area or anywhere else in the store or in a nearby area such as a mall food court;
• Vitamins and medicines;
• Pet food;
• Any non-food items such as tissue, soap or other household goods;
• Meals or food shipped or delivered to businesses or institutions (hospitals, prisons, jails, nursing homes, etc.); and,
• Prepared meals or food (See definition in SC Regulation 117-337.2.)

For more information concerning this exemption see SC Regulation 117-337.