What is the difference in sales tax and use tax?

The Sales Tax is imposed on all retailers within South Carolina and applies to all retail sales of tangible personal property within the state. Retailers making sales of tangible personal property in South Carolina are required to remit the Sales Tax to the SCDOR.

The Use Tax is imposed upon the consumer of tangible personal property that is purchased at retail for use, storage, or consumption in South Carolina. The Use Tax applies to purchases from out-of-state retailers. The Use Tax has been around since 1951 – the same year the Sales Tax law was adopted in South Carolina.

Both the Sales Tax and the Use Tax apply to leases or rentals at retail of tangible personal property (e.g., tuxedos, office equipment, etc.).

It is important to note that either the South Carolina Sales Tax or the South Carolina Use Tax applies to a single transaction, but not both.