Maximum Sales and Use Tax (Max Tax) Items (see §12-36-2110):
- Aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;
- Motor vehicle
- Trailer or semitrailer pulled by a truck tractor, horse trailers,
- Recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or
- Self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.
Local taxes administered and collected by the SCDOR on behalf of local jurisdictions do not apply to the sale or lease of Max Tax items.
Changes Effective July 1, 2017
- Items subject to an Infrastructure Maintenance Fee are exempt from the Maximum Sales and Use Tax. The Infrastructure Maintenance Fee is reported and paid to the
South Carolina Department of Motor Vehicles. Generally, the fee is due on motor vehicles, motor cycles, trailers and semitrailers pulled by a truck tractor, or other items that must be registered under Chapter 3 of Title 56.
Maximum Sales and Use Tax is reported and paid to the SCDOR. This is due on boats, airplanes, self-propelled light construction equipment with compatible attachments limited to a maximum of 160 net engine horsepower, and other items not subject to the Infrastructure Maintenance Fee.
Items Subject to Max Tax up to $300:
- A maximum tax of $300 applies to the sale of musical instruments and office equipment sold to religious organizations. Sellers must submit Form ST-382 for capped items sold to religious organizations.
A maximum tax of $300 also applies to certain energy efficient manufactured homes.
Mobile Homes: The first 35% of the selling price of a new or used mobile home is exempt from sales and use tax. After allowing for the exemption, the maximum tax imposed on the sale is $300 plus 2% of the remaining sales price exceeding $6,000. The 2% may be waived if certain energy efficiency levels are met in the mobile home.
How to File:
Taxpayers who sell Maximum Sales and Use Tax items will report their sales on Form
which should be submitted with a complete Form
Schedule of Maximum Tax Allocation. Sales of certain items subject to an Infrastructure Maintenance Fee must be reported in gross proceeds of sales. Since items subject to an Infrastructure Maintenance Fee are exempt from Sales and Use Tax, such sales may be taken as a deduction on Worksheet #3 of Form
Sales and Use Tax accounts are set up with a monthly filing frequency. Quarterly and annual filing frequencies must be approved by the SCDOR. The request must be submitted in writing.