All content from the SC Department of Agriculture website: https://agriculture.sc.gov/faq/scate/

ELIGIBILITY AND EXEMPTIONS

1. Is the tax law changing? Can I still get the same exemptions as before?

South Carolina’s sales tax laws have not changed. The only thing that has changed is the way buyers demonstrate they are eligible for certain agriculture tax exemptions.

2. What ag products are exempt from sales tax?

These are exempt items, per the SC Department of Revenue:

  • Feed used for the production and maintenance of poultry and livestock;
  • Insecticides, chemicals, fertilizers, soil conditioners, seeds or seedlings, or nursery stock, used solely in the production for sale of farm, dairy, grove, vineyard or garden products or in the cultivation of poultry or livestock feed;
  • Containers* and labels used in:
    • preparing agricultural, dairy, grove or garden products for sale; or
    • preparing turpentine gum, gum spirits of turpentine and gum resin for sale.
  • Fuel used in farm machinery and farm tractors;
  • Farm machinery and their replacement parts and attachments, used in planting, cultivating or harvesting farm crops, including bulk coolers (farm dairy tanks) used in the production and preservation of milk on dairy farms, and machines used in the production of poultry and poultry products on poultry farms, when such products are sold in the original state of production or preparation for sale. This exemption does not include automobiles or trucks;
  • Fuel used exclusively to cure agricultural products;
  • Natural and liquefied petroleum gas and electricity used exclusively in the production of poultry, livestock, swine and milk;
  • Electricity used to irrigate crops;
  • Building materials, supplies, fixtures and equipment for the construction, repair or improvement of or that become part of a self-contained enclosure or structure specifically designed, constructed, and used for the commercial housing of poultry or livestock.

* For purposes of this exemption, containers mean boxes, crates, bags, bagging, ties, barrels, and other containers.

SCDOR provides a detailed explanation of these exemptions here.

If you have questions about agriculture exemptions and taxes not addressed here, you can contact SCDOR at FarmExemption@dor.sc.gov. The relevant section of the South Carolina Code of Laws can be viewed here.

3. How do I know if I’m eligible for a SCATE card?

If you purchase eligible products (see previous answer) in South Carolina, you are eligible for a SCATE card.

4. Do I have to meet a certain agriculture income threshold to qualify for exemptions?

South Carolina law does not require producers to generate a certain level of income from agriculture to qualify for sales tax exemptions.

5. I don’t file a Schedule F. Can I still get a SCATE card?

The IRS Schedule F (Form 1040) details profits and losses from farming, and is a simple way for the state to determine that you are eligible for agriculture sales tax exemptions. If you don’t file a Schedule F and report farm income on your tax return, you may still be eligible for agriculture sales tax exemptions. The application contains a field for non-Schedule F filers to explain their farming activities.

6. Is the new SCATE card accepted by online retailers?

If exempt items are purchased online for delivery in South Carolina, then the online retailer should honor the South Carolina agriculture exemption.

7. Is the new SCATE card accepted by out-of-state retailers?

If the farmer receives the purchased items outside of South Carolina, then the items are subject to tax and/or exemptions allowed by the other state. In this case, the SCATE card would not be applicable.

If the farmer receives the delivery of purchased items when in South Carolina, then South Carolina tax and exemptions are applicable. In this case, the SCATE card could be used.

8. Can out of state residents apply for a SCATE card?

Yes, out of state residents who qualify can apply for a SCATE card to use for agricultural tax exempt purchases made in South Carolina.