SC Second Amendment Sales Tax Holiday

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Reba

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No sales tax will be charged for the purchase of guns in South Carolina on the Friday and Saturday after Thanksgiving.

(Bolded areas for emphasis and easy reading.)
State of South Carolina
Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Website Address: Welcome to the South Carolina Department of Revenue
SC REVENUE RULING #08-13
SUBJECT: Second Amendment Sales Tax Holiday
(Sales and Use Tax)
EFFECTIVE DATE: Beginning 12:01 a.m. on the Friday after Thanksgiving and ending at twelve midnight the following Saturday of each year.
SUPERSEDES: All previous advisory opinions and any oral directives in conflict herewith.
REFERENCES: Act 338, Section 2, of 2008 (Enacted June 25, 2005)
AUTHORITY: S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2007)
SC Revenue Procedure #05-2
SCOPE: The purpose of a Revenue Ruling is to provide guidance to the public and to Department personnel. It is an advisory opinion issued to apply principles of tax law to a set of facts or general category of taxpayers. It is the Department’s position until superseded or modified by a change in statute, regulation, court decision, or another Departmental advisory opinion.
LAW:
Code Section 12-36-2120 has been amended to exempt from the sales and use tax:
( ) sales of handguns as defined pursuant to Section 16-23-10(1), rifles, and shotguns during the forty-eight hours of the Second Amendment Weekend. For purposes of this item, the 'Second Amendment Weekend' begins at 12:01 a.m. on the Friday after Thanksgiving and ends at twelve midnight the following Saturday.
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EXAMPLES OF EXEMPT AND NON-EXEMPT ITEMS
Pursuant to the amendment to Code Section 12-36-2120 cited above, the department publishes the following list as examples of items it believes to be exempt and non-exempt during the “Second Amendment Sales Tax Holiday.”
Please note that the items listed below as “Exempt” are the only items listed in the law as exempt during the “Second Amendment Sales Tax Holiday.”
However, the items listed below as “Non-exempt” are examples and the list is not all-inclusive. Any item that is not a handgun (as defined in Code Section 16-23-10(1)), rifle or shotgun is subject to the tax.
Exempt items include:
handguns as defined pursuant to Code Section 16-23-10(1)1
rifles
shotguns

Non-exempt items include2:
ammunition
archery supplies
black powder
books
carrying cases
cleaning supplies
gun barrels
gun safes
handguns generally recognized or classified as antique, curiosity, or collector's items
handguns that do not fire fixed cartridges
holsters
hunting clothes
knives

1 Code Section 16-23-10(1) defines a “handgun” as “any firearm designed to expel a projectile and designed to be fired from the hand, but shall not include any firearm generally recognized or classified as an antique, curiosity, or collector's item, or any that does not fire fixed cartridges.”
2 Some of the items in this non-exempt list are parts and attachments to handguns, rifles or shotguns (e.g., gun barrels, magazines, sights, stocks) and others are not (e.g., ammunition, black powder, carrying cases, holsters, locks, clothing). Since sales tax is a "transaction tax," and since the law did not exempt parts or attachments (e.g., gun barrels, magazines, sights, stocks) or supplies and accessories (e.g., ammunition, black powder, carrying cases, holsters, locks, clothes), then the sale of a part or attachment by itself, or the sale of a supply or accessory, would not be exempt during the “Second Amendment Sales Tax Holiday.” However, if a part or attachment to a handgun, rifle or shotgun (e.g., sight) is pre-packaged with a handgun, rifle or shotgun, then that is one transaction to purchase a handgun, rifle or shotgun and the sale of the pre-packaged unit would be exempt, provided the transaction meets all the requirements of the exemption as set forth in the law. 2
lasers
lights
locks
magazines
range gear
reloading supplies
safety vests
sights
sporting clays
stocks
targets
toy handguns
toy rifles
toy shotguns
videos
QUESTIONS AND ANSWERS:
The following answers represent the department's opinion with respect to various issues concerning the "Second Amendment Sales Tax Holiday:"
(1) When is the "Second Amendment Sales Tax Holiday??”
The two-day “Second Amendment Sales Tax Holiday” is held annually beginning at 12:01 a.m. on the Friday after Thanksgiving and ending on the following Saturday at midnight.
(2) Must the eligible item being sold be delivered to the customer during the two-day “Second Amendment Sales Tax Holiday” in order for the exemption to apply?
An item qualifying for the “Second Amendment Sales Tax Holiday” will be exempt if:
(a) the eligible item is both delivered to and paid for by the customer during the two days of the “Second Amendment Sales Tax Holiday”; or
(b) the eligible item is ordered and paid for by the customer and the order is accepted by the retailer during the “Second Amendment Sales Tax Holiday” for immediate shipment or delivery, even if delivery is made after the “Second Amendment Sales Tax Holiday.” An order is accepted by the retailer when it has taken an action to fill the order for immediate shipment or delivery.
Actions to fill an order include placing an "in date" stamp on a mail order or assigning an order number to a telephone order. An order is for immediate shipment or delivery when delayed shipment or delivery is not requested by the customer and is for immediate shipment or delivery, notwithstanding that the shipment or delivery may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the retailer.
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(3) Does the “Second Amendment Sales Tax Holiday” apply to sales made by mail order, Internet or similar retailers?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs during the two days of the “Second Amendment Sales Tax Holiday” as discussed in Question #2.
(4) Does the “Second Amendment Sales Tax Holiday” apply to custom or special orders?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs during the two days of the “Second Amendment Sales Tax Holiday” as discussed in Question #2.
(5) Does the “Second Amendment Sales Tax Holiday” apply to sales made to a trade or business (e.g., security firm, etc.) or to a government agency (e.g., police department, sheriff’s office, etc.)?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs during the two days of the “Second Amendment Sales Tax Holiday” as discussed in Question #2.
(6) Does the “Second Amendment Sales Tax Holiday” apply to rentals?
Yes, provided the item rented is one qualifying for the exemption, the rental agreement is signed during the two days of the “Second Amendment Sales Tax Holiday” whereby the customer is bound by the rental agreement (creating an obligation to pay the periodic rental payments), and the rental transaction meets all the requirements discussed in Question #2.
Note: If the rental agreement is later renewed and this renewal does not occur during a subsequent “Second Amendment Sales Tax Holiday,” then the renewal is not eligible for the exemption and all periodic payment under the renewal are subject to the sales and use tax.
(7) Are delivery charges subject to the tax during the “Second Amendment Sales Tax Holiday?”
Most delivery charges are included in the tax base for the sales tax and the use tax. If an item qualifies for the exemption under the “Second Amendment Sales Tax Holiday,” then all delivery charges associated with that sale are exempt. For example, if a retailer sells a rifle during the sales tax holiday for $2,000 and also charges $55 to deliver the rifle, then the entire charge of $2,055 is exempt from the sales or use tax.
(8) Are engraving charges for handguns, rifles, and shotguns sold during the “Second Amendment Sales Tax Holiday” subject to the tax?
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If an item qualifies for the exemption under the “Second Amendment Sales Tax Holiday,” then all engraving charges associated with that sale are exempt. For example, if a retailer sells a rifle during the “Second Amendment Sales Tax Holiday” for $2,000 and also charges $50 to engrave a name on the stock, then the entire charge of $2,050 is exempt from the sales or use tax.
(9) How are exchanges of items purchased during the "sales tax holiday" handled when returned after the “Second Amendment Sales Tax Holiday?”
If a customer purchases an exempt item during the “Second Amendment Sales Tax Holiday” and later exchanges the item for the same item (different caliber, different brand, etc.) with no additional payment due as a result of the exchange, then no additional tax will be due even if the exchange is made after the “Second Amendment Sales Tax Holiday.”
For example: If the customer purchased a $500 handgun during the “Second Amendment Sales Tax Holiday” and later exchanges it for another handgun ($500 or less) but one of a different caliber, then no additional tax will be due even if the exchange is made after the “Second Amendment Sales Tax Holiday.”
However, if the customer returns the item after the “Second Amendment Sales Tax Holiday” and is allowed a credit for the sales price of the item that can be used to purchase of a different item, the sales or use tax will apply to the sale of the newly purchased item.
For example: If the customer purchased a $500 handgun during the “Second Amendment Sales Tax Holiday” and later returns it after the “Second Amendment Sales Tax Holiday” and receives a credit for $500 that is used to purchase a rifle, shotgun or other item, then the sales or use tax will apply to the sale of the newly purchased rifle, shotgun or other item.
(10) How are exchanges of items purchased before the “Second Amendment Sales Tax Holiday” handled when returned during the “Second Amendment Sales Tax Holiday?”
If a customer purchases an item before the “Second Amendment Sales Tax Holiday” and later exchanges the item during the “Second Amendment Sales Tax Holiday” for the handgun, rifle or shotgun that qualifies for the exemption, no additional tax will be due since the item received in the exchange is one that qualifies for the exemption.
(11) How will the “Second Amendment Sales Tax Holiday” apply to rain checks?
The issuance of a rain check during the “Second Amendment Sales Tax Holiday” will not qualify an item for the exemption if the item is actually purchased after the “Second Amendment Sales Tax Holiday.”
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Items that qualify for the exemption which are purchased during the “Second Amendment Sales Tax Holiday” using a rain check will be exempt from sales or use tax regardless of when the rain check was issued.
(12) Does an item placed on lay-away during the “Second Amendment Sales Tax Holiday” qualify for the exemption?
Yes, provided the item sold is one qualifying for the exemption, the sale occurs during the two days of the “Second Amendment Sales Tax Holiday, ” the terms of the lay away agreement create an absolute obligation to pay for the customer, and the sale meets the requirements discussed in Question #2.
Note: If the terms of the lay away agreement do not create an absolute obligation to pay for the customer, then the sale is subject to the sales and use tax even if it occurs during the “Second Amendment Sales Tax Holiday” since the sale has not met the requirements of the exemption as discussed in Question #2.
(13) Does the “Second Amendment Sales Tax Holiday” apply to local sales and use taxes collected by the department on behalf of counties that have imposed such local sales and use taxes?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs during the two days of the “Second Amendment Sales Tax Holiday” as discussed in Question #2.
(14) How should retailers report sales exempt during the “Second Amendment Sales Tax Holiday?”
With respect to the return filed for November, all sales, whether or not exempt from the tax, should be reported on Line 1 of the Worksheet on the back of the sales and use tax return. Sales of items exempt from the tax during the “Second Amendment Sales Tax Holiday” should be listed as one of the deductions in the space provided on Line 4 of the Worksheet on the sales and use tax return and listed as “Second Amendment Sales Tax Holiday Exemption."
(15) Can retailers elect not to participate in the “Second Amendment Sales Tax Holiday” and collect the sales tax from their customers on eligible items during the two days of the “Second Amendment Sales Tax Holiday?”
No. Retailers may only "pass on" to their customers sales taxes that are legally due.
The department may revoke any and all licenses issued by the department and held by a retailer, and impose any applicable penalties, if the retailer passes on sales taxes that are not legally due.
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(16) Is the sale of an exempt item on a "90 days same as cash" basis exempt from tax if purchased during the “Second Amendment Sales Tax Holiday?”
Yes, provided the contract obligating the buyer to pay is signed during the “Second Amendment Sales Tax Holiday” and delivery of the item is made during the “Second Amendment Sales Tax Holiday” or the retailer accepts the order during the “Second Amendment Sales Tax Holiday” for immediate shipment, even if delivery is made after “Second Amendment Sales Tax Holiday.” See Question #2 for what is meant by "immediate shipment or delivery."
If you have any questions, you may call the Department of Revenue at (803) 898-5788 or e-mail the Department at salestax@sctax.org.
Note: The advisory opinion only concerns the application of the “Second Amendment Sales Tax Holiday exemption for certain handguns, rifles and shotguns and does not concern the laws and regulations for the sale, delivery or shipment of such handguns, rifles, or shotguns by retailers. Retailers or other persons with non-tax questions concerning federal, state or local laws or regulations regarding the sale, or method of shipment or delivery, of a handgun, rifle or shotgun should research such laws or regulations, contact the applicable federal, state or local authorities or obtain professional advice concerning such non-tax matters.
SOUTH CAROLINA DEPARTMENT OF REVENUE
s/Ray N. Stevens
Ray N. Stevens, Director
November 3 , 2008
Columbia, South Carolina 7
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Welcome to the South Carolina Department of Revenue
Look under "What's New" for link to PDF
 
Are you willing to host several AD'ers to stay at your house while we take advantage of no-sales tax on guns?
 
Enthusiasts spur sales of firearms

Many buyers worry limits, higher taxes might be placed on arms, ammunition
By Tony Bartelme
The Post and Courier
Sunday, November 30, 2008

During the first hour of the Land of the Sky Gun and Knife Show at the Exchange Park in Ladson on Saturday, 1,000 people came through the doors, two or three times as many in the same amount of time last year, organizers said.

LADSON — Barack Obama apparently is the best salesman the gun industry has had in years.

At gun shows and shops here and across the country, people are loading up on assault rifles, hand guns and ammo. "It's the first gun show we've had since the election, and we had a thousand people come through our first hour," said Mike Kent, owner of the Land of the Sky Gun and Knife Show. "That's about double or triple what we did the same time last year."

As people lined up at the fairgrounds to get into the show Saturday, Kent said many gun enthusiasts fear the Obama administration will curtail their right to buy arms or raise taxes on ammunition.

"Every time the Democrats do well in an election, gun sales surge," said Kent, adding that he's been in the business about 20 years and remembers a similar gun rush in 1994 when Congress passed a 10-year ban on about 20 specific assault rifles. The ban expired in 2004.

Gun sales also may have gotten a boost from South Carolina lawmakers.

Earlier this year, the General Assembly passed a law giving gun buyers a tax break on firearms the Friday and Saturday after Thanksgiving. South Carolina is the only state to hold such a tax holiday for guns.

But some shoppers and dealers Saturday said the tax break was secondary to their concerns about what might happen with a Democratic majority in Congress and an Obama administration.

"I was going to buy a gun no matter who got elected president," said Lovell Wittig, who picked up a .380-caliber handgun for $275. But he said he was concerned that lawmakers could tighten gun laws, causing prices of guns and ammunition to spike. "If the prices go up too much, a lot of people won't be able to afford to shoot."

Jason Garner, an employee at ATP Gun Shop & Range near Summerville, said he sold 10 guns in the first 10 minutes the store was open Friday. "And we probably sold 125 guns in the first two hours."

Bill Hayes, an instructor at ATP, said assault rifles with price tags ranging from $600 to $2,500 have been big sellers. "The manufacturer hasn't been able to keep up making the AR-15 (a semiautomatic rifle based on the military's M-16)."

He's also seeing a big increase in people taking classes or using the shooting range. "There were 20 people on the waiting list to get in the other day."

Some customers Saturday at the gun show wondered privately whether gun dealers were stoking fears about an Obama presidency to boost sales and create a false sense of scarcity. During the presidential campaign, gun-control advocates accused the National Rifle Association of using fear tactics to affect the election, which the NRA denied.

Obama's campaign Web site said he "respects the constitutional rights of Americans to bear arms" and promised to "protect the rights of hunters and other law-abiding Americans to purchase, own, transport and use guns."

But many gun dealers and buyers Saturday said they didn't want to take any chances with the next administration. Meanwhile, some said they went to the show because it was better than spending a rainy day at the mall. Cy Whitfield, a Charleston custom furniture maker, said he isn't planning to buy any more rifles. "I came because the gun show is here," he said after buying ammunition. "I don't think the election is going to affect me."
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Local News: Enthusiasts spur sales of firearms - Charleston.net
 
State residents can buy firearms free of sales tax
By SEANNA ADCOX
Associated Press
Saturday, November 29, 2008

COLUMBIA — TVs and laptops aren't the only hot items in South Carolina during this busy shopping weekend. The state is offering an unusual perk to shoppers: no sales tax on handguns, rifles and shotguns.

The so-called "Second Amendment Weekend" is thanks to a little-debated amendment legislators tacked on this summer to a tax break for energy-efficient appliances.

The energy-efficiency measure doesn't go into effect until next year. But today, gun buyers don't have to pay state and local sales taxes that can total 8 percent. Taxes still apply to ammunition and accessories.

"We are a gun-owning-tradition state, a hunting-tradition state," said Republican state Rep. Mike Pitts, a retired police officer who introduced the proposal and has promoted other pro-gun legislation.

"Quite often people will buy their pop or grandpop a shotgun or rifle to hunt with for Christmas," he said in an interview by cell phone while out hunting.

The tax-free weekend is expected to attract record crowds today to the Land of the Sky Gun and Knife Show at the fairgrounds in Ladson. Dealers will have 300 tables of guns, knives, ammo and other items available at the show, which will be open from 9 a.m. to 5 p.m. today. The show also will be open from 10 a.m. to 4 p.m. Sunday.

While stores that sell guns are hoping for a boost in business, some opponents called it a gimmick that plays politics by tinkering with the state's tax code.

Legislators approved the holiday in June over the objection of Republican Gov. Mark Sanford, also an avid hunter and gun supporter. He called it a stunt that only affects the timing of a gun purchase, without effectively promoting gun ownership or demand.

"Regardless of what the sales tax holiday is for, we think it's gimmicky and a bad idea," spokesman Joel Sawyer said.

The cost impact is negligible; state economic officials estimate it will cost about $15,000 at a time that South Carolina had to cut annual spending by $488 million.

South Carolina is the only state offering any kind of tax break to shoppers over Thanksgiving weekend, said Joe Henchman, counsel for the Washington-based Tax Foundation, a nonpartisan tax research group.

The National Rifle Association said no other states are considering a tax-free holiday on gun sales, though the group thinks they should.

"Everyone is faced with tough times, and we believe, in addition to helping hunters and shooting sports enthusiasts, this will also help the local economy and merchants," NRA spokesman Andrew Arulanandam said.
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Charleston, SC Latest State and Regional News: State residents can buy firearms free of sales tax
 
It's that time again. :)

Hubby and I are going gun shopping today and maybe tomorrow, to take advantage of the sales-tax-free weekend.
 
Very unusual. Are there any other items that are exempt from sales taxes in SC? Here in MN, we exempt non-prepared food(groceries), clothing, and prescription drugs.
 
saywhatkid said:
Very unusual. Are there any other items that are exempt from sales taxes in SC? Here in MN, we exempt non-prepared food(groceries), clothing, and prescription drugs.
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Each year before school starts there is one sales-tax-free weekend for things school related.
 
Reba said:
Each year before school starts there is one sales-tax-free weekend for things school related.
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So, is everything (food, clothes etc,) sales-taxed the rest of the time? BTW, that is a great idea for back to school.
 
saywhatkid said:
So, is everything (food, clothes etc,) sales-taxed the rest of the time? BTW, that is a great idea for back to school.
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Yes, there is a sales tax on everything, including "hospitality" (hotel rooms). In addition, our state has property taxes (trailers, cars, boats) and income tax. Bah!
 
Reba said:
Yes, there is a sales tax on everything, including "hospitality" (hotel rooms). In addition, our state has property taxes (trailers, cars, boats) and income tax. Bah!
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Ouch.
There was some discussion on removing the exemption on clothing, but it failed to go through. The sales tax is currently at 6.875% for everything else, but in Minneapolis, they pay an additional .5% to fund a new baseball stadium for the Twins. We also have property tax and income tax.
When I was living in Maryland, and came here to work for five months, I concurrently paid state income tax in BOTH states. :mad:
 
Makes me glad we get tax exemptions on food, housing, clothes... you know the basics.... for now.

Not sure how BC's HST (Harmonized Sales Tax) will change that although.
 
The thing about taxes on food is this is how the states generate revenue - they tax something that everyone will have to buy eventually. The only ones that do not pay these taxes are those on Social Security, Disability, and Food Stamps and other Government Assistance programs in which the government pays the bill for you.

If we had no taxes on these items, state revenue would plummet, and state infrastructure would decline then we would have our panties in a bunch because our state doesn't have the funds for this or that. It's bad enough that due to massive layoffs that many states are seeing a tax shortfall this year because many will not have the money to pay their taxes with.

I'll gladly pay my taxes knowing that eventually it will benefit me and my family. But at the same time states need to be fair and not tax its citizens and residents to death to the point that they cannot make ends meet.

Workers have taxes taken out of their paychecks, they go to the store and they have additional tax money to pay on their groceries and clothing, then at the end of the year if they have made too much, they will have to pay taxes in. After all of these taxes and what nots, nearly 1/3 of your income goes to taxes annually. This is why a person that makes $55,000 annually before taxes has to live like they really make only about $30,000 annually, this is so that they are living well within their means and if a tax-bill is due at the end of the year, they are able to pay it. Any extra left at the end of the year should be put back for the next year, and at retirement you can reward yourself with a nice trip to Europe or something.

But there are those that fall in this gap, they make around $30,000 annually before taxes, but because they are above the poverty line, they are not eligible for gov't assistance so they have to live like they make only about $15,000 annually, and sometimes it's difficult to do that and at the end of the year they are lucky to break even where they don't gain any and they don't lose any. What extra they do make has to be put back for retirement so they don't have to work at WM as a greenthumb greeter for prescription money.
 
Reba, so you got him a deer rifle....an odd-six, 8mm Mauser or a 30-30 carbine? What do you have for deer back there, mulies or white-tails?
 
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