South Carolina S 173: Income tax deduction

Bill Text

2025-2026 Bill 173 Text of Previous Version (Jan. 14, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 173

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 12-36-90, RELATING TO THE GROSS PROCEEDS OF SALES, SO AS TO PROVIDE 
THAT THE GROSS PROCEEDS OF THE SALE OF EYEGLASSES IS THE TOTAL AMOUNT OF THE 
PURCHASE LESS ANY INSURANCE BENEFITS PAID.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 12-36-90(2) of the S.C. Code is amended to read:

 (2) The term does not include:

 (a) 
a cash discount allowed and taken on sales;

 (b) 
the sales price of property returned by customers when the full sales price is 
refunded in cash or by credit;

 (c) 
the value allowed for secondhand property transferred to the vendor as a 
trade-in;

 (d) 
the amount of any tax imposed by the United States with respect to retail 
sales, whether imposed upon the retailer or the consumer, except for 
manufacturers or importers excise taxes;

 (e) 
a motor vehicle operated with a dealer, transporter, or manufacturer, or 
education license plate and used in accordance with the provisions of Section 
56-3-2320 or 56-3-2330;

 (f) 
that portion of a charge taxed under Section 12-36-910(B)(3) or 
12-36-1310(B)(3) attributable to the cost set by statute for a governmental 
license or permit;

 (g) 
fees imposed on the sale of motor oil, new tires, lead-acid batteries, and 
white goods pursuant to Article 1, Chapter 96 of Title 44, including the 
refundable deposit when a lead-acid battery core is not returned to a retailer;

 (h) 
the sales price, not including sales tax, of property on sales which are 
actually charged off as bad debts or uncollectible accounts for state income 
tax purposes. A taxpayer who pays the tax on the unpaid balance of an account 
which has been found to be worthless and is actually charged off for state 
income tax purposes may take a deduction for the sales price charged off as a 
bad debt or uncollectible account on a return filed pursuant to this chapter, 
except that if an amount charged off is later paid in whole or in part to the 
taxpayer, the amount paid must be included in the first return filed after the 
collection and the tax paid. The deduction allowed by this provision must be 
taken within one year of the month the amount was determined to be a bad debt 
or uncollectible account;

 (i) 
interest, fees, or charges however described, imposed on a customer for late 
payment of a bill for electricity or natural gas, or both, whether or not sales 
tax is required to be paid on the underlying electricity or natural gas bill;

 (j) 
the environmental surcharge imposed pursuant to Section 44-56-450;

 (k) 
the alcoholic liquor by the drink excise tax imposed by Section 12-33-245;

 (l) 
amounts received from a buydown. For purposes of this subitem, "buydown" means 
an agreement between a retailer and a manufacturer or wholesaler in which the 
retailer receives a payment from the manufacturer or wholesaler that requires 
the retailer to reduce the sales price of the manufacturer's or wholesaler's 
product to the retail purchaser. This subitem does not apply to amounts 
received by a retailer from a retail sales transaction in which a retail 
purchaser uses a manufacturer's or wholesaler's coupon.

 (m) the total proceeds of retail sales 
of eyeglasses when the purchase is paid in whole or in part by any insurance 
benefits. Gross proceeds of the sale of eyeglasses shall be the total amount of 
the sale less any insurance benefit applied to the purchase.

SECTION 2. This act takes effect upon approval 
by the Governor.

----XX----

This web page was last updated on January 14, 2025 at 12:27 PM