South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 11 - SALES AND USE TAX REGULATIONS › Section 117-337.3 - General Rules

Current through Register Vol. 48, No. 6, June 28, 2024
(A)
			 Sales of "Eligible Food" by Grocery, Convenience and Similar Stores Authorized
			 to Accept Food Stamps:
Sales of "eligible food" by a grocery, convenience or similar
				store authorized to accept food stamps shall be deemed to be for home
				consumption and exempt from the state sales and use tax under Code Section
				12-36-2120(75).
However, if the store has an identifiable location which
				advertises, holds itself out to the public (e.g., offers hot food or the
				ability to heat food, provides seating, or provides utensils with the meal or
				food), or is perceived by the public as being engaged in the sale of
				ready-to-eat food or beverages to customers for their immediate consumption on
				or off the premises, then all sales of food from that identifiable location
				shall be deemed to be for immediate consumption and subject to the sales tax at
				the full state rate, unless the sale falls within the exception noted above in
				Regulation Regulation
				117-337.2.
				For example, if a neighborhood grocery store also has a lunch counter, then
				sales from that lunch counter are for immediate consumption and subject to the
				tax at the full sales tax rate. If the lunch counter also sold entire sheet
				cakes, then the sale at retail of a sheet cake would be exempt from the state
				sales and use tax under Code Section
				12-36-2120(75)
				 provided the sale is not for a party or
				gathering held at the store or delivered by the store to a business or
				institution.
(B) Sales of
			 "Eligible Food" by Grocery and Other Stores Not Authorized to Accept Food
			 Stamps:
Sales of "eligible food" by a grocery, convenience or similar
				store not authorized to accept food stamps but which is engaged in the retail
				sale of all sorts of canned foods and dry goods (e.g., tea, coffee, spices,
				sugar, and flour), and may also be engaged in the retail sale of fresh fruits
				and vegetables and fresh and prepared meats, fish, and poultry, shall be deemed
				to be for home consumption and exempt from the state sales and use tax under
				Code Section
				12-36-2120(75).
However, if the store has an identifiable location which
				advertises, holds itself out to the public (e.g., offers hot food or the
				ability to heat food, provides seating, or provides utensils with the meal or
				food), or is perceived by the public as being engaged in the sale of
				ready-to-eat food or beverages to customers for their immediate consumption on
				or off the premises, then all sales of food from that identifiable location
				shall be deemed to be for immediate consumption and subject to the sales tax at
				the full state rate unless the sale falls within the exception noted above in
				Regulation Regulation
				117-337.2.
				For example, if a convenience store has an area where a customer can get a hot
				dog or sandwiches that are intended for immediate consumption (including ones
				intended to be heated in a microwave), then the sale of the hot dogs and
				sandwiches are for immediate consumption and subject to the full state rate.
				Any chips or drinks (whether fountain drinks or bottled drinks) sold with that
				hot dog or sandwich at the lunch counter are also for immediate consumption and
				subject to the full state rate.
(C) Sales of "Eligible Foods" to or by
			 Vending Machine Operators for Sale through Vending Machines:
Sales of "eligible food" to or by vending machine operators for
				sale through vending machines are for immediate consumption and subject to the
				sales tax at the full state rate.
(D) Sales of "Eligible Food" to Institutions:
Sales of "eligible food" to the SC Department of Corrections,
				city or county jails, hospitals, nursing homes, and colleges for use in
				providing meals to the prisoners, patients, or students are sales to
				institutions who, under the sales and use tax law, are the users or consumers
				of such food in carrying out their primary functions of incarcerating convicts,
				providing medical care or providing an education. As such, sales of such food
				are not for home consumption and are subject to the sales tax at the full state
				rate.
(E) Sales of
			 "Eligible Food" Prepackaged with a Non-Eligible Item
Sales of "eligible food" that is prepackaged with a
				non-eligible item, or sales in which a single price is established for a
				combination of an "eligible food" and a non-eligible item, are subject to the
				tax at the full state rate.
For example, if a grocery store advertises and sells a basket
				containing fruit and a bottle of wine, the exemption under Code Section
				12-36-2120(75)
				is not applicable. The full state rate applies.
(F) "Eligible Food" Purchased with Food
			 Stamps:
"Eligible food" purchased with food stamps from a retailer
				authorized by the United States Department of Agriculture to accept food stamps
				are exempt from the sales and use tax.