South Carolina has enacted a state and local sales tax exemption for materials used in the construction or repair of a motorsports entertainment complex. Effective July 2, 2018, the exemption applies to items used to construct, repair, or improve a complex such as building materials, supplies, fixtures, and equipment.

To claim the exemption, a qualifying company must first apply to the South Carolina Department of Revenue.  A qualified company is one that:

  • makes a capital investment of at least $10 million;
  • in a motorsports investment complex;
  • within five years following approval of the application

Once the qualifications are met, an exemption certificate is issued. However, sales and use taxes will be due if a company receives the exemption but fails to meet the capital investment requirements. This certificate will be valid until December 31 of the fifth  full calendar year after issuance. The certificate must be returned upon its expiration. Additionally, the company must submit a report of actual expenditures in South Carolina made for investment.

If you have erroneously remitted taxes on materials and satisfy the business requirements of the exemption, you may qualify for a tax refund.  To apply for a tax refund with the South Carolina Department of Revenue, Taxpayers can submit the applicable ST-14 Claim for Refund for Sales Tax and Related Sales Tax or may request a refund online by using the South Carolina Department of Revenue MyDORWAY portal. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.