The bill S. 654 proposes an amendment to Section 12-36-2120 of the South Carolina Code of Laws to introduce a sales tax exemption for specific items sold to internet access service providers and communications service providers. The new legal language specifies that all supplies, technical equipment, machinery, and electricity used by these providers in the production, broadcasting, or distribution of their services will be exempt from sales tax. Additionally, the bill classifies internet access service providers and communications service providers as manufacturers for the purposes of this exemption.

The exemption outlined in the bill will be in effect until July 1, 2033, at which point the provisions will be repealed. The act is set to take effect on July 1, 2026, allowing time for implementation and compliance by the affected service providers.

Statutes affected:
05/06/2025: 12-36-2120
Latest Version: 12-36-2120