Annual Sales Tax Holiday Weekend is this weekend, August 5-7

South Carolina’s Sales Tax Holiday weekend is here. From Friday, August 5 through Sunday, August 7, South Carolina shoppers can purchase a number of back-to-school items tax free.

For one weekend every summer, specific items are exempt from the 6% state sales tax and any applicable local sales taxes. Some of the tax free items include paper, notebooks, pens and pencils, book bags, computers, clothing, shoes, bed linens, and bath towels.

During the 17th Annual Sales Tax Holiday, shoppers are expected to save an estimated $2.25 million, according to the Board of Economic Advisors.

Jewelry, cosmetics, eyewear, furniture, and items placed on layaway are not exempt from sales taxes.

Specifically. Code Section 12-36-2120(57) provides for an annual three-day sales tax holiday for sales taking place from 12:01 a.m. on the first Friday in August and ending at midnight on the following Sunday. Accordingly, the 2016 sales tax holiday weekend will begin Friday, August 5, 2016 at 12:01 a.m. and end Sunday, August 7, 2016 at midnight.

During this time, the 6% state sales and use tax, and any applicable local sales and use tax, will not be imposed on clothing, clothing accessories (e.g., hats, scarves, hosiery, and handbags), footwear, school supplies (e.g., pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators), computers, printers and printer supplies, computer software, and bath wash cloths, blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillow cases. The sales tax holiday, however, does not apply to sales of jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing or footwear, items for use in a business, or items placed on layaway or similar deferred payment and delivery plans.

Attention retailers – follow these rules for reporting sales exempt during the "sales tax holiday?"

With respect to the return filed for August, 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 "sales tax holiday" should be listed as one of the deductions in the space provided on Line 4 of the Worksheet on Form ST-3. On Forms ST-388 and ST-403, the deduction for sales exempt under the "sales tax holiday" should be listed as "Sales Tax Holiday Exemption" as one of the deductions on Line 4 of the Worksheet.

Additionally, retailer cannot elect not to participate in the "sales tax holiday" and collect the sales tax from their customers on eligible items during the three days of the "sales tax holiday. 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 if the retailer passes on sales taxes that are not legally due.

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.