S.C. Code Regs. 117-337 — Sales of Unprepared Food

Effective November 1, 2007, Code Section 12-36-2120(75) exempts from the state sales and use tax
the gross proceeds of sales or sales price of ''unprepared food that lawfully may be purchased with
United States Department of Agriculture food coupons.'' This exemption does not apply to local sales
and use taxes that are administered and collected by the Department on behalf of the counties and
other jurisdictions, unless the local tax law specifically exempts the sales of such unprepared food.
The determination as to whether a sale of unprepared food is exempt from the state sales and use
tax is based on whether the food is of a type that is eligible to be purchased with USDA food stamps,
the type of location selling the food, and whether the food is being sold for immediate consumption,
business or institutional consumption, or home consumption.
In other words, a food must be of a type eligible to be purchased with USDA food stamps and must
also be sold for home consumption (based on the type of food and the type of location selling the food)
to qualify for the exemption from the state sales and use tax under Code Section 12-36-2120(75). For
example, bottled soft drinks are eligible to be purchased with USDA food stamps, but if bottled soft
drinks are sold at a concession stand at a festival, then the bottled soft drinks are sold for immediate
consumption and not home consumption and the sale at the festival would be subject to the full state
sales tax rate.
This regulation will explain which sales of food qualify or do not qualify for the exemption under
Code Section 12-36-2120(75).