Is the sales of food subject to sales and use tax?

Yes. The sale of food is subject to the Sales and Use Tax; however, the Sales and Use Tax law provides exemptions for the sale of certain foods, including but not limited to:

• Meals provided to elderly or disabled persons at home by nonprofit organizations.
• Food sold to nonprofit organizations or food sold or donated by the nonprofit organization to another nonprofit organization.
• Meals or foodstuffs prepared or packaged that are sold to public or nonprofit organizations for congregate or in-home service to the homeless or needy or disabled adults over 18 or individuals over 60. This exemption only applies to meals and foodstuffs eligible for purchase under the USDA food stamp program.
• Unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons. This exemption does not apply to local taxes unless the local tax specifically exempts the sale of such food. Important: See SC Regulation 117-337  for details about what sales do or do not qualify for this exemption.