FAQs > OPERATIONS > SALES TAX EXEMPTION
Are nonprofits allowed to claim a sales tax exemption?
Answered by: Sharon Thomas
South Carolina has no blanket sales tax exemption for nonprofits. However, there are a few exemptions as identified in this publication: (https://dor.sc.gov/resources-site/publications/Publications/Sales-Use-Manual-Chapter9.pdf):
- 12-36-2120(10)(b): Meals provided to elderly or disabled persons at home by nonprofit organizations.
- 12-36-2120(10)(c): Food sold to nonprofit organizations or food sold or donated by the
- nonprofit organization to another nonprofit organization
- 12-36-2120(10)(d): 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.
- 12-36-2120(12): Water sold by public utilities and certain non-profit corporations.
- 12-36-2120(39): Concession sales by nonprofit organizations at festivals.
- 12-36-2120(41): Sales by nonprofit organizations SC Revenue Ruling #12-3; SC Revenue Ruling #09-8; SC Revenue Procedure #03-6; SC Private Revenue Opinion #01-5.
- 12-36-2120(47): Goods sold to nonprofit hospitals that primarily treat children at no cost to the patient.
To Obtain South Carolina Sales and Use Tax Exemption, submit SC Form ST-387 along with IRS 501(c)(3) determination letter, Bylaws, and the most recent income statement and balance sheet to:
SC Department of Revenue, License and Registration, Columbia, SC 29214-0140
Information: (803) 896-1420, Web Site: www.sctax.org/default.htm