S.C. Sales Tax
Section 12 Chapter 36 of SC Code of Laws
As a licensed retail motor vehicle dealer, Royal Auto Sales is required to collect sales tax on retail vehicle sales that occur in South Carolina.
The sales tax collected should be 5% of the purchase price of the vehicle, but is not to exceed $300.
If you trading a vehicle in, the sales tax is collected only on the difference paid for the new vehicle, not to exceed $300.
Sales Tax is not charged on Extended Warranties (Service Contracts) in SC.
When a vehicle is delivered outside of South Carolina, and it is not intended to be registered in South Carolina, the sale is not subject to sales tax. The buyer will pay tax in their home state.
If the buyer comes to
South Carolina and picks up the vehicle, their liability for sales tax
depends on the state they live in. Sending a common carrier, auto transporter,
or driver to SC to pick up and deliver the vehicle to another state constitutes
an
in-state
pick-up,
and the buyer is subject to the same Sales Tax as if he or she came personally
to retrieve the vehicle.
Residents of the following states are subject to the lesser of the SC tax
rate or the tax rate of the reciprocal state:
Alabama – 2%, Arizona – 5%, California – 7.25% of the
entire purchase price,
Colorado – 3%, Connecticut – 6%, Florida 6%, Georgia – 4%,
Hawaii 4%,
Idaho – 5%, Illinois – 6.25%, Kansas – 4.9%, Louisiana – 4%,
Maine – 6%, Massachusetts – 6%, Michigan – 6% of the purchase
price,
Minnesota – 6.5%, Missouri – 4.225%, Nebraska – 5%, New
Jersey – 6%,
New York – 4%, North Dakota – 5%, Ohio – 5%, Pennsylvania – 6%,
Rhode Island – 7%, Tennessee – 6%, Texas – 6.25%, Utah – 4.875%,
Vermont – 5%, Washington – 6.5%, Wisconsin – 5%, Wyoming – 4%.
Unless noted, the sales tax is charged on the sale price minus the trade-in allowance.
The states whose residents are not subject to SC sales tax are:
Alaska, Arkansas, Delaware, The District of Columbia, Indiana, Iowa, Kentucky,
Maryland, Mississippi, Montana,Nevada, New Hampshire,
New Mexico, North Carolina,
Oklahoma, Oregon, South Dakota, Virginia, and West Virginia.
These tax rates are only a guide and are subject to change.
Sales Tax Exemptions
Non Resident Military
Regardless of where a soldier registers his or her vehicle, sales of Cars,
SUVs, and Vans to
non-resident military personnel are NOT subject to SC sales
tax.
However, motorcycles and trucks, including pick-ups, are subject to
SC sales tax.
A copy of the soldier’s Leave and Earnings statement showing a state
of residence other than SC
is required to benefit from this exemption.
Military personnel who are SC residents have to pay SC sales tax on all motor vehicles.
Purchasers over the age of 85
Purchasers over the age of 85 are eligible for a 1% discount on sales tax.
These customers must request the discount and provide proof of age.
Wholesale and Retail Automobile Dealers
Wholesale and Retail Automobile Dealers from any state are tax exempt.
A copy of your sales tax license and dealer's license is required.
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