St 389 Form – Fill Out and Use This PDF

ESSENTIAL INFORMATION FOR ST-3/ST-389 (Rev. 9/6/02)

Please read carefully and keep this booklet in a convenient place for future reference.

	INTRODUCTION		penalties and interest must be calculated and paid, or an
			assessment will be issued.
	The South Carolina Department of Revenue is requiring taxpayers to
	report their taxes on Form ST-3 and Form ST-389, if applicable.		LOCAL SALES TAX: The local taxes are due if the sale was made or
	Form ST-3 is preprinted with your:		products were delivered into a local tax county. The local taxes authorized
			to be collected by counties include:
	Business Name
			Capital Projects	Local Option
	Address
			School District	Property Offset
	Retail License Number or Purchaser's Certificate (Use Tax		Transportation
	Registration)
	Federal Employer Identification Number		The local sales or use tax is applicable if the county has approved the tax
			by referendum. The county/jurisdiction codes applicable to these taxes
	Period covered
			are indicated on the Form ST-389. If the location of your business is
	Please draw a line through any incorrect information, enter corrections		within a listed municipality, you must use the municipality code for your
	and check box on your return. If it is necessary to use blank returns, be		location.
	sure to indicate the information listed above or other identifying
	information (social security number).		LOCAL TAX FILING NOTICE: If your business is located in a county that
			is imposing a local tax in addition to the 5% Sales and Use Tax, Form
	FILING REQUIREMENTS		ST-389 must be filed with Form ST-3 even if the local tax due is zero. The
	If you have a retail license or use tax registration, you are required to file		zero must be placed beside the appropriate county/jurisdiction code on
			Form ST-389.
	a tax return even if there is no tax due for the period. See Business Tax
	Telefile instructions for filing zero returns.		If you are collecting and reporting another county's local taxes, Form
	Note: To file quarterly, annual,	or seasonal contact SC DOR for	ST-389 is required to be filed to designate the appropriate amount of local
			tax to a county or jurisdiction. Instructions for completing Form ST-389 are
	approval.
			located in this booklet. For more detailed information, request SC
	FORMS TO FILE		Revenue Ruling #91-17 or visit our website at www.sctax.org
	Form ST-3 You are required to file a Form ST-3 to report any sales and		EXEMPTIONS FROM LOCAL TAXES
	use tax due in this state.
			The following transactions are exempt from local taxes:
	Form ST-389 The Form ST-389 is used to designate the appropriate		Sales covered by the maximum tax limitation: aircraft, motor vehicles,
	portion of local tax to a county or municipality based upon sales or		motorcycles, boats, recreational vehicles, or self-propelled light
	deliveries within the county or municipality. You are required to file a		construction equipment,
	Form ST-389 with a Form ST-3 if:		Mobile homes (does not apply to contents)
	your business is located in a county that imposes a local tax or		Sales of musical instruments and office equipment sold to religious
	your business delivers to a county with local tax, regardless of		organizations,
	whether your business is or is not located in a county that imposes a		Construction contracts (Must have prior Department approval.)
	local tax.		Sales of certain food which may be lawfully purchased with USDA
			food stamps are exempt from the School District Tax. This exemption
	The ST-389 is used for reporting the following types of 1% local tax:		applies to everyone, not just persons using food stamps.
	Capital Project Tax	Local Option Tax
	School District Tax	Property Offset Tax	CHANGE IN OWNERSHIP
	Transportation Tax
			Any change in ownership will	require a new owner to complete a

Business Tax Application, Form SCTC-111 and remit the appropriate fee.

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STEP-BY-STEP INSTRUCTIONS FOR ST-3/ST-389

All entries must be typed or hand printed, clearly and legibly. If using a non-preprinted form, see the introduction section under Essential Information for instructions.

If you have a retail license or a use tax registration, you are required to file a tax return even if there is NO TAX DUE for the period. For zero returns, see Business Tax Telefile instructions.

WHEN FILING "NO SALES" RETURNS, please enter zeroes on lines 1 and 3 only on the ST-3.

COMPLETE THE SALES AND USE TAX WORKSHEET ON THE BACK OF THE ST-3 BEFORE MAKING ENTRIES ON LINES 1 THROUGH 8.

IMPORTANT: If it is determined that no entry is needed on a line (other than lines 1 and 3), PLEASE LEAVE LINES BLANK. Do not write on the lines that do not pertain to you.

STEP 1 COMPLETING THE SALES AND USE TAX WORKSHEET

SAMPLE SALES AND USE TAX WORKSHEET (from the back of ST-3)

SALES AND USE TAX WORKSHEET INSTRUCTIONS

LINES 1 through 6

Line 1: Gross Proceeds of Sales/Rentals, Withdrawals for Own Use

Enter the total amount of all sales (taxable and nontaxable), leases and/or rentals made by the business for the reporting period. Nontaxable sales are to be deducted on line 5. DO NOT INCLUDE THE AMOUNT OF SALES TAX COLLECTED.

You must also report purchases of tangible personal property (merchandise, equipment, etc.) purchased tax free at wholesale, but used by you and/or your employees. When purchasing merchandise out-of-state, there may be circumstances when additional tax is due. To determine if you owe additional tax, contact the South Carolina Department of Revenue.

Line 2: Out-of-State Purchases Subject to Use Tax

Enter the total purchases of tangible personal property purchased from an out-of-state retailer who did not collect South Carolina use tax. If the tax rate in your county is greater than the tax rate paid out-of-state, contact SC DOR for additional information.

Line 3: Total

Add lines 1 and 2. Enter total here and on Line 1 on the front of ST-3.

Line 4: Sales and Use Allowable Deductions

To claim a deduction relating to a sale, the sales transaction must be reported on line 1 or 2 of this worksheet. Enter the type of deduction (see list below) in Column A and the dollar amount of the sale in Column B. South Carolina law provides for a deduction from gross proceeds of sales those items specifically exempt from tax. The list below is used to

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identify some of the items to be shown as a deduction. Any amount claimed as a deduction on your return must be itemized in Column A and B of this worksheet. You are required to maintain records that will support all deductions claimed on this return. A further explanation of deductions is available by obtaining a copy of the South Carolina

Sales and Use Tax Code of Laws by contacting the Department's Central Office, the Taxpayer Service Centers or visit our website: www.sctax.org

Line 5: Total Amount of Deductions (Total Column B. Enter here and line 2 on front of return)

Line 6: Net Sales and Purchases (Line 3 minus line 5)

SAMPLE SALES AND USE TAX INSTRUCTIONS

IMPORTANT: If it is determined that no entry is needed on a line, PLEASE LEAVE LINES BLANK. Do not write on the lines that do not pertain to you.

Line 1 Gross Proceeds of Sales: Enter the gross proceeds of sales, rentals, use tax and withdrawals for own use. Enter the total from line 3 of your worksheet. Do not include sales tax collected in this amount.

Line 2 Total Amount of Deductions: Enter the total amount of deductions from line 5 of your worksheet.

Line 3 Net Taxable Sales: Subtract line 2 from line 1.

Line 4 Tax (Multiply line 3 x 5% (.05).)

Line 5 Taxpayer's Discount: A taxpayer's discount may be claimed when the return is filed and the tax due is paid in full on or before the due date of the return. No discount is allowed if the return or payment is received after the due date. The discount is computed as follows:

If your combined tax liability (line 4, ST-3 and line 2, Column B last page of ST-389) is less than $100, the discount rate is 3% (.03) of line 4. If the total is $100 or more, the discount rate is 2% (.02) of line 4. Deduct this amount from line 4.

Note: Discounts are not allowed to exceed $3,000 per taxpayer (for all locations) during any one South Carolina fiscal year, which covers payments made from July 1 through June 30. This includes all returns which become due during this period (returns for June through May). The $3,000 maximum includes the total discounts for sales/use and local taxes. Taxpayers who file and pay electronically are allowed a $3,100 maximum discount. The discount amount is $10,000 for

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out-of-state retailers who cannot be required to register for sales and use tax but who voluntarily register to collect and remit the tax. However you must receive prior approval from the Department of Revenue for the $10,000 discount.

Line 6 Sales and Use Tax Net Amount Payable: Line 4 minus 5.

Line 7 Penalty and Interest: Enter the total of Penalty and Interest, from calculations below or visit our website: www.sctax.org

PENALTY FOR FAILURE TO FILE A RETURN: Five percent (.05) of the amount of tax due (from line 4 on the front of the return) for each month or fraction of a month of delinquency, not to exceed twenty-five percent (.25) of the amount of tax due.

PENALTY FOR FAILURE TO PAY TAX DUE: The penalty is one-half of one percent (.005) of the amount of tax due (the total of line 4 on the front of the return) for each month or fraction of a month of delinquency, not to exceed a total of twenty-five percent (.25) of the amount of tax due. The penalty for failure to file and pay must be combined and entered as a total on line 7.

INTEREST: Interest is assessed in accordance with 6621 and 6622 of the Internal Revenue Code. Rates are based on the prime rate, subject to change quarterly and are compounded daily.

Line 8 Total Sales and Use Tax: Enter the total of lines 6 and 7.

WOULD LOCAL TAX APPLY?

Only complete this section if one of the following applies:

Your business is located in a county that imposes a local tax, even if the local tax due is zero.

Your business delivers to county with local tax, regardless of whether your business is or is not located in a county that imposes a local tax.

SAMPLE LOCAL TAX WORKSHEET (from the back of form ST-389 )

$

LOCAL TAX WORKSHEET INSTRUCTIONS

Complete this section of the return if you sold, purchased or delivered property for use in a county with a local tax. This worksheet is to assist you in determining the proper amount required to be allocated on Form ST-389.

Line 1 Net Sales and Purchases:

Enter amount from line 6 of sales and use tax worksheet.

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Line 2 Local Tax Allowable Deductions:

Certain transactions are taxable for the state's 5% Sales and Use Tax, but are exempt from SC local sales and use tax. Some examples are:

Deliveries to counties without local tax

Quarterly and annual filers remitting tax on the first reporting period after the implementation date may use the worksheet to calculate the amounts not subject to the local tax

Taxable portion of all sales which fall under the $300 maximum tax. (i.e. automobiles, mobile homes, etc.)

This is not a complete listing of Local Tax exemptions. You may contact the South Carolina Department of Revenue at

(803)898-5788 for additional information, if you have questions regarding these exemptions. Enter the total allowable deductions from Column B on line 2.

Line 3 Total Net Taxable Local Sales: (Subtract line 2 from line 1)

Total should agree with Column A, line 1, last page of ST-389.

Note: If your sales, purchases and withdrawals are used or delivered in a county with more than one local tax, the taxable amount on line 2, last page of ST-389 may not agree with net taxable local sales.

STEP 4

ST -389 -

CALCULATING LOCAL TAX

1. CAPITAL PROJECT TAX

34-2726

(A)

(B)

(C)

(D)

For Office

Name of

Code

Net Taxable

Local

Discount

Net Amount

Use Only

County or

Amount

Tax

After Discount

Jurisdiction

AIKEN

1002

x 1% =

-

=

ALLENDALE

1003

x 1% =

-

=

NEWBERRY

1036

3,500.00

x 1% =

35.00

-

.70 =

34.30

ORANGEBURG

1038

12, 000.00

x 1% =

120.00

-

2.40 =

117.60

YORK

1046

x 1% =

-

=

INSTRUCTIONS FOR COMPLETING FORM ST-389, page 1

The Form ST-389 is a two part form. Capital Project and School District Taxes are to be reported on page one only. The names and codes for these taxes are preprinted on page 1 of the ST-389. Transportation, Property Offset and Local Option taxes are to be reported on page 2 only. If additional Local Option space is needed use ST-389-A located in the back of your booklet.ONLY ONE ENTRY PER LINE IS ALLOWED.

If you do not have a preprinted form, please enter the business name and address, retail license or registration number and the period ended as shown on Form ST-3, ST-388 or ST-403 to which this schedule must be attached.

Use instructions below to complete Columns A, B, C, and D for Capital Project and School District Taxes.

Column A Net Taxable Sales or Purchase: Enter net taxable sales or purchases made for each county or jurisdiction. Credits are not allowed to be taken on this form. (See credits section located in this booklet under Essential Information.)

Column B Local Tax: Multiply Column A by 1% (.01) and enter results in Column B for each county or jurisdiction.

Column C Discount: A taxpayer's discount may be claimed when the return is filed and the tax due is paid in full on or before the due date of the return. No discount is allowed if the return or payment is received after the due date. The discount is computed as follows:

Use same discount rate as used for line 5, form ST-3, ( Column B x Discount Rate).

Note: Discounts are not allowed to exceed $3,000 per taxpayer (for all locations) during any one South Carolina fiscal year, which covers payments made from July 1 through June 30. This includes all returns which become due during this period (returns for June through May). The $3,000 maximum includes the total discounts for sales /use and local tax. Taxpayers who file and pay electronically are allowed a $3,100 maximum discount. The discount amount is $10,000 for out-of-state retailers who cannot be required to register for sales and use tax but who voluntarily register to collect and remit the tax. However you must receive prior approval from the Department of Revenue for the $10,000 discount.

Column D Net Amount After Discount: (Column B minus Column C) Enter total in Column D.

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4. LOCAL OPTION TAX

34-2721

(A)

(B)

(C)

(D)

For Office

Name of

Code

Net Taxable

Local

Discount

Net Amount

Use Only

County or

(See back

Amount

Tax

After Discount

Jurisdiction

of form)

NOTE: Sales at your location, if you are in a local option jurisdiction

FLORENCE

1021

300.00 x 1% =

3.00

-

.06 =

2.94

NOTE: Sales delivered to other local option jurisdiction/city/municipality.

BATESBURG

2057

3,200.00 x 1% =

32.00

-

.64 =

31.36

SUMTER

2880

900.00 x 1% =

9.00

-

.18 =

8.82

1.	Total Column A from pages 1, 2		19,900.00
and all ST389-A's		1 .
						199.00
2.	Total Column B from pages 1, 2 and all ST389-A's			2
3.	Total Column D from pages 1, 2 and all ST389-A's							3	195.02
4.	Penalty ________________ Interest ________________			OFFICE USE ONLY: _________________				4
	(Add Local Tax Penalty and Interest)
5.	Total (Add lines 3 and 4)	Enter amount on line 9, ST-3 or line 17, ST-388 or ST-403						5	195.02

INSTRUCTIONS FOR COMPLETING FORM ST-389, Page 2

Transportation, Property Offset and Local Option Taxes are reported on page 2.

Local Option taxes are to be reported on page two only of the ST389 and ST-389-A, if applicable.

Name of County or Jurisdiction: This column is used to identify a particular county or municipality where delivery takes place. A list of counties which impose the 1% local option sales and use tax is located on the back of Form ST-389. Enter the name of the county or municipality based upon sales or deliveries within a particular county or municipality. If your business is located in a municipality, you must use the municipality code of your business location.

Code: Enter the code for the named county or municipality based upon codes identified on the back of the Form ST-389. Use instructions below to complete Columns A, B, C, and D for Local Option Tax.

Column A Net Taxable Amount: Enter net taxable sales or purchases made for each county or municipality. Credits are not allowed to be taken on this form. (See credits section located in this booklet under Essential Information.)

Column B Local Tax: Multiply Column A by 1% (.01) and enter results in Column B for each county or municipality.

Column C Discount: A taxpayer's discount may be claimed when the return is filed and the tax due is paid in full on or before the due date of the return. No discount is allowed if the return or payment is received after the due date. The discount is computed as follows:

Use the same discount rate as used on line 5 of form ST-3. (Column B times Discount Rate)

Note: Discounts are not allowed to exceed $3,000 per taxpayer (for all locations) during any one South Carolina fiscal year, which covers payments made from July 1 through June 30. This includes all returns which become due during this period (returns for June through May). The $3,000 maximum includes the total discounts for sales /use and local tax. Taxpayers who file and pay electronically are allowed a $3,100 maximum discount. The discount amount is $10,000 for out-of-state retailers who cannot be required to register for sales and use tax but who voluntarily register to collect and remit the tax. However you must receive prior approval from the Department of Revenue for the $10,000 discount.

Column D Net Amount After Discount: (Column B minus Column C) Enter net discount amount in Column D.

Line 1:

Line 2:

Line 3:

Line 4:

PENALTY FOR FAILURE TO FILE A RETURN: Five percent (.05) of the amount of local tax due (on line 3) for each month or fraction of a month of delinquency, not to exceed twenty-five percent (.25) of the amount of tax due.

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PENALTY FOR FAILURE TO PAY TAX DUE: The penalty is one-half of one percent (.005) of the amount of local tax due (on line 3) for each month or fraction of a month of delinquency, not to exceed a total of twenty-five percent (.25) of the amount of tax due.

The penalty for failure to file and pay must be combined and entered as a total on line 4.

INTEREST: Interest is assessed in accordance with 6621 and 6622 of the Internal Revenue Code. Rates are based on the prime rate, subject to change quarterly and are compounded daily.

Line 5: Add lines 3 and 4. Enter the total of Column D from line 5 on ST-3 line 9.

Make a copy of the completed Form ST-389 for your records.

Reminder: All pages of Form ST-389 must be attached to appropriate state form.

LOCAL TAX

REMINDER: ST-389 must be completed and attached for all local taxes.

If this section does not apply, go to line 10.

Sign and date your return on the ST-3.

DON'T FORGET Returns are past due after the 20th of the month.

If you are not using preprinted forms and it is necessary to use blank forms, be sure to include your social security number or Federal Employer Identification number in the label section.

Social Security Privacy Act Disclosure

It is mandatory that you provide your social security number on this tax form. 42 U.S.C 405(c)(2)(C)(i) permits a state to use an individual's social security number as means of identification in administration of any tax. SC Regulation 117-1 mandates that any person required to make a return to the SC Department of Revenue shall provide identifying numbers, as prescribed, for securing proper identification. Your social security number is used for identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of Revenue is limited to the information necessary for the Department to fulfill its statutory duties. In most instances, once this information is collected by the Department, it is protected by law from public disclosure. In those situations where public disclosure is not prohibited, the Family Privacy Protection Act prevents such information from being used by third parties for commercial solicitation purposes.

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