Businesses Doing Disaster Work in South Carolina Not Required to Register, Pay Taxes

Out-of-state businesses doing repair work in South Carolina because of damage caused by Hurricane Florence may not have to register or file and pay taxes. South Carolina was declared a disaster area on September 16, 2018, allowing the Federal Emergency Management Agency (FEMA) to coordinate relief beginning September 8, 2018.

How Long Does the Exemption Apply?

Businesses that are not registered in South Carolina but that perform disaster work do not have to register or pay and file taxes during the disaster period. The disaster period begins within 10 days of a disaster declaration and ends 60 days later, unless a longer period is authorized.

Exempt Repair Activities

The exemptions apply to businesses repairing:

– communications networks;

– electric and gas systems;

– water pipelines;

– public roads and bridges; and

– facilities related to the above.

Taxes Not Included in the Exemption

Out-of-state businesses are not exempt from paying:

– taxes and fuel user fees;

– sales and use taxes on materials or services;

– accommodations taxes; and

– car rental taxes.

Disaster Repair Business Notification to the State

An out-of-state business must notify the South Carolina Department of Revenue that it is in the state repairing disaster caused by Hurricane Florence. The statement must include the business’:

– name;

– state of domicile;

– principal address;

– federal tax identification number;

– date of entry; and

– contact information.

Notification may be sent to taxregistration@dor.sc.gov or mailed to:

– South Carolina Department of Revenue

– Attn: Registration Unit – Hurricane Florence

– PO Box 125

– Columbia, SC 29214-0850

Information Letter 18-14, South Carolina Department of Revenue, October 3, 2018, ¶400-919

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CCHTaxGroup

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