South Carolina Internet Retailers Urged to File Sales Taxes to Boost Economy

In the words of former President John Kennedy, "Ask Not What Your Country Can Do For You, But What You Can Do for Your Country." At this time when the economy is hurting, this advice is particularly meaningful to South Carolina Internet retailers who owe sales taxes. A Tennessee study recently revealed that failure to pay sales tax has cost South Carolina $94 million in tax revenue in 2009 and is projected to cost $110 million in 2010. This has resulted in government budget cuts in programs and services to residents.

Though South Carolina Internet retailers have treated the filing of sales tax as voluntary according to Adrienne Fairwell, spokeswoman for the SC Department of Revenue, the agency does have requirements for filing sales tax for Internet sales that are provided on its Web site www.sctax.org. Sales tax is defined as tax imposed on the sale, rental or lease of goods and certain services. South Carolina's policies for Internet retailers state that the vendor must obtain a retail license and remit a sales tax of six percent of the gross proceeds of sales. It is important to note that Internet retailers include individuals selling tangible personal property out of their homes over the Internet. Retailers may choose not to charge buyers sales tax and to pay it themselves.

Based on the type of retail business that retailers have, the deadline for filing taxes is monthly (the 20^th of the following month), quarterly (the 20^th of every three months), or annually (January 20^th of the following year). While retailers may mail their taxes, they also have the electronic convenience of filing them through the Department of Revenue's website application (eSales) or by a software transmission program called Electronic Funds Transfer/Electronic Data Interchange. The State Sales and Use Tax Return form, referred to as ST-3, is simple to complete and is available online at www.sctax.org, or it can be picked up from the local Taxpayer Service Center. In addition retail licenses can be purchased and obtained online, by phone, or in person at the Taxpayer Service Center.

Though the main focus has been on Internet retailers who owe taxes, filing sales taxes is a necessity from any type of vendor doing business in South Carolina. This includes retailers at flea market/yard sales, special events, and arts and crafts shows and festivals. More details concerning taxes and retail licenses are found on www.sctax.org. It must be remembered that together all taxpayers can make a difference in helping South Carolina to regain revenue.