Thousands of out-of-state retailers have reported collecting nearly $64 million in South Carolina Sales Tax since November 2018.
The reported collections stem from a ruling from the U. S. Supreme Court on June 21, 2018, in the case of South Dakota v. Wayfair, that an out-of-state seller with no physical presence in a state can be required to collect and remit Sales and Use Taxes in states where they meet certain economic thresholds.
The SC Department of Revenue (SCDOR) subsequently required that as of November 1, 2018, a remote seller whose gross revenue from sales delivered into South Carolina exceeds $100,000 in the previous calendar year or the current calendar year is responsible for obtaining a retail license and remitting South Carolina Sales and Use Tax.
The SCDOR now has almost 3,800 remote sellers who have registered. In the past year, remote sellers have reported Sales Tax revenues totaling $63,986,033 as of October 31, 2019.
"This means an additional $64 million will be available for education, property tax relief, roads, or other needs in South Carolina," said SCDOR Director Hartley Powell.
Of the nearly $64 million, $33.9 will go into the state's General Fund, while another $8.48 million will go into the state Education Improvement Act Fund and $8.48 million will go into the Homestead Exemption Fund.
The rest is distributed to local governments that charge extra Sales Tax, including almost $3 million for capital projects, $3.7 million for local option, $3.2 million for schools, $2.5 million for roads, and $468,330 for tourism development.
In April, South Carolina Governor Henry McMaster signed into law the Marketplace Facilitator Act. The new law clarifies and reinforces Sales Tax collection requirements for those who facilitate retail sales.
The law coincided with South Carolina's longstanding Sales Tax policy that requires retailers, including marketplace facilitators, to remit Sales and Use Tax on all retail sales on tangible personal property not otherwise exempted or excluded.
"The SCDOR's policy and the law passed earlier this year now ensure that all online retailers collect and remit Sales and Use Tax on all sales, just like brick-and-mortar stores," Powell said.
For more information about remote sellers, visit SCDOR at dor.sc.gov/remotesellers.
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