SC private letter ruling 16-1

Abstract

This paper gives a ruling on the annual membership fees paid to a company that allow members to receive the benefits that are associated with shopping on-line and are subject to South Carolina sales tax as part of the consideration paid for the purchase of tangible personal property pursuant to Code Section 12-36-60. It also rules on the free one month trial membership offered by a company that allows individuals to receive the same benefits as other members that are associated with shopping on-line and is not a sale of tangible personal property for a consideration under Code Section 12-36-100 and, therefore, is not subject to South Carolina sales and use tax.