How to Pay Your South Carolina Excise Tax
South Carolina charges $25 for every $1,000 of your vehicle’s value each year as an excise tax.
Written by Kara Vanderbeek
Reviewed by Claire Beaney
All boat and airplane owners in South Carolina must pay a yearly excise tax of 5% for the privilege of registering their goods.
With the various types of taxes out there, particularly from state to state, it can be hard to keep track of what you need to pay. But if you aren’t aware of which taxes you’re responsible for, the consequences of neglecting to pay them can be severe.
In this guide, we’ll cover everything you need to know about the excise tax: what it is, how much you owe, and what could happen if you don’t pay.
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What is an excise tax in South Carolina?
An excise tax is a legislated tax imposed on various goods, services, and activities. In most cases, an excise tax is imposed on the business of manufacturing and selling alcoholic liquors, tobacco, and fuel. In other words, an excise tax is often levied against goods that have the potential to cause health or environmental harm. The purchaser of goods is required to pay the excise tax.
In South Carolina, a 5% casual excise tax is imposed on the issuance of every certificate of title for every boat, any boat with a motor permanently attached at the time of sale, or airplane, that is required to be registered, titled, or licensed. That’s 5% of the “fair market value”, or purchase price, the value shown in a national publication, or values adopted by the South Carolina Department of Revenue of the airplane, boat, or boat with a motor.
In addition, South Carolina law requires vehicle owners to pay personal property taxes on their vehicles to obtain a license, which must be paid annually thereafter in order to remain registered.
The exact tax depends on the retail value of the vehicle, the taxing district where the vehicle owner resides, and the ownership and weight of the vehicle:
- Privately owned passenger vehicles: 6% of retail value
- Business owned vehicles: 10.5% of retail value
- Trucks with an empty weight over 9,000 lb or a gross weight over 11,000 lb: 10.5% of retail value (the weight used is provided by the manufacturer) including privately owned vehicles
Calculating your excise tax payment
In most cases, excise taxes are not charged to individuals directly, but to the producer or seller of an item. The tax is then included in the sale price of an item to be paid by the consumer. However, if you want to find out just how much of your money is going to taxes, check out the table below.
Good/Service | Tax Rate |
|---|---|
Gasoline | 16¢ per gallon |
Diesel | 16¢ per gallon |
Liquor | $2.7 per gallon |
Wine | $0.9 per gallon |
Beer | $0.8 per gallon |
Cigarettes | 57¢ per gallon |
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Penalties for nonpayment
Failing to pay for excise taxes will result in some inconvenient and expensive consequences. According to
SC Code Law
, any person who fails to pay the required tax within the allotted time will receive a penalty of 25% of the tax and interest at one-half of 1% per month or a fraction of a month from the date the tax was originally due to the date of payment. In addition, the Department of Natural Resources and/or the Division of Aeronautics will not issue a license or transfer title until the tax has been paid.
How to avoid excise tax in South Carolina
In most cases, excise taxes are an unavoidable part of life in South Carolina, but some taxpayers may be eligible for an exemption. In general, tax exemptions go to governments, charitable organizations, former prisoners of war or their spouses, veterans, or disabled or blind persons.
To find out if you’re
eligible for an exemption
or to fill out an exemption form, visit the South Carolina Department of Revenue website
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