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More items are now subject to South Carolina’s Maximum Sales & Use Tax (Max Tax), and Max Tax returns must be filed online starting December 1, 2023

​​What you nee​d to know:

  • New items including ATVs, UTVs, golf carts, dirt bikes, and legend race cars are now subject to South Carolina’s Max Tax.

  • Starting December 1, taxpayers are required to file their Max Tax returns online using MyDORWAY.

  • Existing Max Tax filers should be prepared for changes to the Max Tax return when they go to file their return in December.

More items are now subject to South Carolina's Maximum Sales & Use Tax (Max Tax), and Max Tax returns must be filed online starting December 1, 2023.

The South Carolina Department of Revenue (SCDOR) wants affected taxpayers to know about the changes, including some differences to the Max Tax return starting in December.

What is Max Tax?
Max Tax is a form of Sales Tax applied to certain items, including cars, aircraft, and boats. The Max Tax rate is 5% but capped at a maximum of $500. Retailers of items subject to Max Tax must collect and pay the tax and file Max Tax returns.

New items covered by the Max Tax
As the result of a decision from the South Carolina Court of Appeals, the SCDOR has updated our definition of “motor vehicle," meaning more items are now subject to Max Tax. Examples include:

  • Golf carts
  • ATVs (all-terrain vehicles)
  • UTVs (utility task vehicles)
  • Dirt bikes
  • Legend race cars

The change comes as the result of a state Administrative Law Court decision and a subsequent state Court of Appeals opinion in April 2023, Jack's Custom Cycles, Inc. vs. SCDOR. The courts ruled that certain off-road vehicles that had been previously been subject to the state's full 6% Sales Tax were entitled to be covered under Max Tax.

New electronic filing requirement
Starting December 1 (for the November return, due December 20), Max Tax account holders must file their Max Tax returns online using MyDORWAY, the SCDOR's free online tax portal.

Also starting December 1, Max Tax filers will notice changes to the return on MyDORWAY:

  • Filers must report their Max Tax sales item-by-item, instead of as one total amount.
  • After you enter the purchase price of each Max Tax item sold, MyDORWAY will calculate all taxes due, including the Infrastructure Maintenance Fee (IMF).
  • If you made any payments to the South Carolina Department of Motor Vehicles (SCDMV), you will enter the total sales you reported to the SCDMV.

Prepare for these upcoming changes

  • If you sell ATVs, UTVs, dirt bikes, legend race cars, or golf carts, email the SCDOR at Include your business name, Retail License number or FEIN, and a brief explanation of the items you sell. We will review your account and notify you if your account is updated to include Max Tax.
  • If you are already a Max Tax filer and need to sign up for a new MyDORWAY account, visit You'll need the following information:
    • Your FEIN, SSN, SID, or ITIN
    • Your last payment amount, last refund amount, line 1 from your last return, or a Letter ID

More information
Read Revenue Ruling 23-3​ and visit​maxtax for more details about Max Tax and these changes.

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SCDOR Public Information Office

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