South CarolinaSouth Carolina excludes government 911 network payments from taxable sales
South Carolina excludes government payments for its next-generation 911 network from taxable sales and exempts admission charges by eligible local chambers of commerce.
What it does
State and local government payments for the Emergency Services IP Network are excluded from taxable sales when the service contracts support Next Generation 911 in South Carolina.
Local chambers of commerce have an admissions-tax exemption if they meet federal tax requirements, operate without a profit purpose, and their earnings do not benefit private shareholders or individuals.
Certain people or businesses related to a taxpayer count as that taxpayer for a computer equipment sales-tax exemption. Their relationships must match federal tax rules.
Argument forExcluding government 911 network payments from taxable sales could lower tax costs tied to providing emergency communications.
Argument againstExempting qualifying chamber admission charges could reduce the tax revenue South Carolina collects when people pay to attend events.
More detail
The law excludes covered government service payments from the sales total used to calculate sales tax. The exclusion covers state and local government contracts for the Emergency Services IP Network, a network supporting 911 communications. The service contracts must support Next Generation 911 in South Carolina. The exclusion took effect July 1, 2026.
Admission charges by qualifying local chambers of commerce are exempt from admissions tax. The exemption covers admission charges by eligible local chambers of commerce. The chamber must qualify under Section 501(c)(6) of federal tax law. It must operate without a profit purpose, and its earnings cannot benefit a private shareholder or individual. The admissions-tax exemption took effect July 1, 2026.
The law counts certain related people or businesses as the taxpayer for one computer equipment sales-tax exemption. This definition applies only to the computer equipment exemption in South Carolina Code Section 12-36-2120(79). The relationship must be one listed in Section 267(b) of federal tax law. The taxpayer definition took effect July 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 5Effective date 07/01/26Latest
- Jun 3Act No. 240
- May 19Signed By Governor Henry McMasterBecame Law
- May 15Ratified R 255
- May 14Conference report received and adopted
- Vote recorded Adopt Conference Report. Result: pass.Lower
- May 14Roll call Yeas-105 Nays-0
- May 14Conference report received and adopted
- May 14Conference committee appointed Turner, Young, Sabb
- May 14House insists upon amendment and conference committee appointed Reps. Bannister, Caskey, Stavrinakis
- May 13Non-concurrence in House amendment
- Vote recorded Adopt Amendment 1. Result: pass.Lower
- May 13Roll call Yeas-101 Nays-9
- May 13Returned to Senate with amendments
- May 13Senate amendment amendedMinor
- May 12Debate adjourned
- May 7Roll call Ayes-46 Nays-0
- Vote recorded 3rd Reading. Result: pass.Upper
- May 7Read third time and returned to House with amendmentsPassed 2nd Chamber
- May 7AmendedMajor
- May 6Read second timeMinor
- May 6AmendedMajor
- May 5Committee report: Favorable FinanceMinor
- Apr 28Referred to Committee on FinanceMinor
- Apr 28Introduced and read first timeMinor
- Apr 24Read third time and sent to SenatePassed 1st Chamber
- Apr 23Unanimous consent for third reading on next legislative day
- Vote recorded Passage of Bill. Result: pass.Lower
- Apr 23Roll call Yeas-112 Nays-0
- Apr 23Read second timeMinor
- Apr 21Committee report: Favorable Ways and MeansMinor
- Feb 4Referred to Committee on Ways and MeansMinor
- Feb 4Introduced and read first timeIntroduced
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