State of South Carolina
Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina, 29214

IMPORTANT NOTICE
Effective November 1, 2007

TO: All Retailers Who Make Sales of Unprepared Food Items

FROM: South Carolina Department of Revenue

RE: State Sales and Use Tax Exemption on Sales of Unprepared Food Items

Effective November 1, 2007, sales of unprepared food items eligible to be purchased with United States Department of Agriculture food coupons (i.e., electronic benefit transfer cards) will be exempt from the state sales and use tax rate. Subsequently, the 3% State sales and use rate presently imposed will be deleted due to this exemption. Note this exemption does not apply to local sales and use taxes administered and collected by the S. C. Department of Revenue on the behalf of counties and other jurisdictions unless otherwise specifically exempted.

As a result, the retail sale of unprepared food that is exempt from the state sales tax rate effective November 1, 2007 must be reported and claimed on the specific line(s) on the sales worksheet before completing the front of the return. Indicated below is a list of forms with applicable line(s):

• Form ST-3 – Lines 1 and 7 of the sales tax worksheet
• Form ST-388 – Lines 1, 10 and 19 of the sales tax worksheet
• Form ST-455 – Lines 1, 10 and 19 of the sales tax worksheet

If local taxes are applicable, the retailer must complete the Form ST-389 and its worksheet to report a county’s local sales and use tax administered by the Department of Revenue.

For additional information relating to local taxes imposed and their exemptions as administered by the Department of Revenue, visit our website, (www.sctax.org)
and click on Dept. Advisory Opinions > Index > Sales, Use, Accommodations and Casual Excise Taxes > Local Taxes Collected by DOR (Click on IL 07-4).

If you have questions concerning the reporting of sales, please call one of the following Taxpayer Service Centers:
 
   Columbia Main Office                803-898-5788                             Greenville Service Center            864-241-1200
   Charleston Service Center         843-852-3600                             Myrtle Beach Service Center       843-839-2960
   Florence Service Center            843-661-4850                             Rock Hill Service Center              803-324-7641







Rev. 9/24/07 5186 ST-502