Sales/Use/Indirect:
South Carolina DOR Addresses Recent Decision Declaring Durable Medical Equipment Exemption Void
Information Letter 24-10, S.C. Dept. of Rev. (7/24). The South Carolina Department of Revenue issued an information letter discussing its implementation of a recent South Carolina Supreme Court decision, which declared South Carolina’s statutory sales tax exemption for the sale of durable medical equipment (DME) entirely void because it invalidly discriminated against interstate commerce in violation of the dormant Commerce Clause [see Case No. 2023-000317, S.C. (6/26/24), and State Tax Matters, Issue 2024-26, for more details on this recent decision]. Specifically, the letter gives notice that South Carolina’s sales and use tax exemption for DME under S.C. Code Ann. section 12-36-2120(74) is “now invalid” and, accordingly, “sellers of DME are required to collect and remit sales tax on their sales of DME within this State after June 26, 2024.” Additionally, the letter addresses sales of DME to “Medicaid and/or Medicare beneficiaries, where South Carolina or United States funds under either the Medicaid or Medicare programs are used to partially or fully pay for the DME on behalf of the beneficiaries.” Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
