In a recent private letter ruling, the South Carolina Department of Revenue concluded that a motor vehicle rental company is responsible for remitting sales tax on short-term vehicle rentals entered into through its online peer-to-peer rental program. Applying South Carolina’s statutory definition of “gross proceeds of sales,” which includes the proceeds of sales through a

In a recent private letter ruling, the South Carolina Department of Revenue held that software subscription services are tangible personal property subject to sales and use taxes. A software company that provides a cloud-based business management and billing platform for medical equipment suppliers requested the letter ruling to determine whether its subscription charges were subject

The South Carolina Department of Revenue issued a private letter ruling advising a company that its charges for developing and conducting surveys tailored to its clients’ needs are not subject to sales and use tax as communications services. Although taxable communications services include “charges to access an individual website,” and the company provided its clients

The South Carolina Administrative Law Court (ALC) held that it could not enforce a Department of Revenue (Department) summons for delivery records issued to a North Carolina freight carrier that regularly transported out-of-state furniture into South Carolina. The Department’s summons requested records of all deliveries the company made into South Carolina, including each purchaser’s name,

The South Carolina Court of Appeals upheld the imposition of sales tax on sales of optional “waivers,” which were sold to renters and relieved them from liability of damaged or stolen rental property. Rent-A-Center East, Inc. and Rent Way, Inc. (collectively, the “Taxpayers”) operated retail stores in South Carolina from which customers could rent-to-own durable

The South Carolina Administrative Law Court found that the taxpayer bank could not deduct net operating loss (NOL) carryforwards when computing its bank tax liability. The taxpayer argued that banks should be allowed to deduct NOLs regardless of whether it is paying under the income or the franchise tax, because of the state’s conformity with

This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT Scoreboard includes a discussion of California combined reporting, insights regarding the Washington

The South Carolina Administrative Law Court ruled that the taxpayer was required to collect sales tax on its retail sales of prepaid cellular telephone service.  The taxpayer argued that its sales did not constitute “prepaid wireless calling arrangements,” which must be “sold in units or dollars which decline with use in a known amount.”  Because

By Dmitrii Gabrielov and Tim Gustafson

The South Carolina Court of Appeals held that all of DIRECTV’s South Carolina customer subscription receipts were properly sourced to the state for purposes of determining DIRECTV’s corporate income tax apportionment factor due to the location of its satellite signal delivery. South Carolina’s apportionment statute requires a taxpayer to