Finance Division

Disbursements

SALES AND USE TAX

Sales tax is imposed on the sale of goods and certain services in South Carolina . Generally, all retail sales are subject to the sales tax. Statewide the sales tax is 6%, however counties may elect to impose an additional 1% local sales tax.  Effective, June 1, 2007 the statewide sales tax is 6%.

Use tax is imposed on goods and services purchased outside the state of South Carolina and then brought into the state without any sales tax having been paid on them. If a receipt from an out-of-state retailer shows that sales tax was collected on the merchandise, no use tax should be remitted. However, if the retailer is not licensed to collect South Carolina tax the purchaser of the merchandise is then responsible for remitting this tax to the South Carolina Department of Revenue. If a South Carolina retailer fails to collect sales tax on a purchase, do not add tax to the purchase. All retailers in South Carolina are responsible for collecting their own sales tax.

Freight can be taxable if the shipping terms are "FOB CLEMSON" or "FOB DESTINATION" this means the purchaser of the goods takes title of the goods at their destination (which for us is Clemson). Freight is not taxable if the shipping terms are "FOB SHIPPING POINT" or "FOB POINT OF ORIGIN" this means title is not taken at Clemson, but at the vendor's loading dock. Freight charges billed directly by freight or transportation companies (trucking companies or railroads) are not subject to sales or use tax.

Computer software: Rev. Ruling # 96-3 states that computer software delivered in the form of a computer diskette or magnetic tape is tangible personal property subject to taxation. Computer software sold and delivered by electronic means is not subject to sales and use tax. It should be noted that if we receive delivery on the same item both ways, the entire amount is taxable.

Click HERE to see some Sales and Use Tax tips.

Warranties, Maintenance and Similar Service Contracts- Taxable

Effective, September 1, 2011, the South Carolina Department of Revenue has announced legislative changes to the collection of State sales tax or the accural of use tax. Please use the table below to simplify the tax inclusion/exclusion questions on invoices that Clemson pays for goods and services.

Please note that this table applies to deliveries made after September 1, 2011.

Purchase Item Description Taxable
Maintenance Contract for Equipment or Item

Maintenance Contract for Equipment or Item
Purchased with Equipment/Tangible Property even if listed as a separate line item

Yes
Maintenance Contract for Equipment or Item Purchased at a later date or not purchased in conjunction with the product No
Maintenance Contract for Software Purchased with Software that was delivered electronically No
Maintenance Contract for Software Purchased Delivered Tangible Property (Disk, Flash Drive, etc) Yes
Software Purchased or Delivered Tangible Property (Disk, Flash Drive, etc) Yes
Software Delivered Electronically No
Software Internet websites that allow customer use of software on that website. Companies that provide customers access or use of software are referred to as Application Service Providers (ASP). Yes
Warranty Purchased with Tangible Property even if listed as a separate line item Yes
Warranty Purchased at a later date or not purchased in conjunction with the product No

Certain transactions are excluded or exempted from the use tax. See also sales/use tax exclusions. Please refer to the South Carolina Department of Revenue for additional details as well as a list of counties which collect the 1% local sales tax.  See the Sales Tax Rate by Zip Code chart for the most recent tax rates for each SC County.

Updated March 2013