Tax Law Insights

In South Carolina, a maximum  or “capped” sales tax of $500 ($300 for sales on or before June 30, 2017)  is imposed on the sale of motor vehicles and certain other vehicles.  Under the facts of a recent South Carolina Administrative Law Court (ALC) decision, a South Carolina motor sports dealer sold all-terrain vehicles (ATVs) and side-by-side vehicles (UTVs) and paid the maximum tax on these sales.  The South Carolina Department of Revenue (DOR) audited the dealer and determined the maximum tax did not apply to these ATV/UTV sales because they were not qualifying motor vehicles in ...