S.C. Code Regs. 117-307.6 — Accommodations Furnished to the Federal Government or Federal Government Em-

ployees.
Charges for hotel and motel accommodations to a federal employee on official government business
are exempt from sales tax pursuant to Code Section 12-36-2120 if the accommodations are purchased
directly by the federal government.
Therefore, the 7% sales tax on accommodations in not applicable when:
1. The federal government is billed directly by the retailer;
2. The federal employee pays by government check; or,
3. The federal employee pays by government credit card and the federal government is billed
directly by the credit card company.
Charges for hotel and motel accommodations to a federal employee on official government business
are subject to the sales tax if the accommodations are purchased by the federal employee, even if the
employee is reimbursed for the charges. This includes transactions in which:
1. The federal employee pays by personal check; or,
2. The federal employee pays by credit card, is billed directly by the credit card company, and is
reimbursed by the federal government.
NOTE: The presentation by a federal employee of a tax exemption certificate issued by the federal
government is not sufficient to exempt the transaction from the tax. In order to be tax exempt, a
transaction involving a tax exemption certificate must also meet one of the above requirements.