Back to top

South Carolina Sales Tax Exemption of Electricity and Other Fuels

In South Carolina, the sales of electricity and other fuels used for residential purposes are exempt from sales and use tax.

According to South Carolina Revenue Ruling #17-1, this exemption applies specifically to “the gross proceeds of sales, or sales price of: electricity, natural gas, fuel oil, kerosene, LP gas, coal, or any other combustible heating material or substance used for residential purposes.”

In SC Revenue Ruling #92-4, the Department concluded that the following sales of electricity to an apartment complex used exclusively as a residence are exempt from sales tax under Code Section 12-36-2120(33):

  1. Electricity provided to individual apartment units.
  2. Electricity provided to common areas which are integral and necessary to the individual apartment unit’s residential use, such as hallways, parking lots, trash compactors and entrance gates.
  3. Electricity provided to residential apartment amenities, such as laundry facilities, pool and club houses, and tennis courts, if the amenities are (1) used exclusively for domestic purposes, and (2) used only by apartment residents and their non-paying guests.
  4. Electricity provided for use in business related areas of the apartment complex (e.g. office area, maintenance facilities, and repair facilities), if the electricity for the entire apartment complex is centrally metered and billed as such.

The definition of “residential purposes” is provided in the Revenue Ruling.

About Vertex SMB

Vertex SMB provides a cloud-based sales and use tax solution for calculation and remittance, designed for small to medium-sized businesses operating in 2 or more states. Let us help you find the right pricing plan for your business.

Image courtesy of sirirakphotos at

New Ebook

The 5 W’s of Drop Shipping Tax Rules

What Ecommerce Retailers Must Know

Take the Quiz
Screenshot of PDF Download
  • Previous Post

    The Tax on Beer

    How much tax revenue do the states rake in from alcoholic beverages like beer? The Tax Foundation compiled a…

  • Next Post

    Florida Sales Tax Frenzy over Flowers

    Headquartered in Florida, American Business USA Corp, challenged the Department of Revenue regarding the requirement of sales tax collections…