Covid-19 doubles online sales taxes
Online sellers collected $311.5 million in SC sales and use tax in 12 months.
From Nov. 1, 2019 to Oct. 31, 2020, sales tax from remote sellers doubled over last year.
The number of remote sellers registered with the department also grew, from 3,800 to 5,443.
Online marketplace facilitators handling sales for a 3rd party, reported $183.4 million in sales taxes for the period ending Oct. 31, 2020.
“This means an additional $311.5 million will be available for South Carolina needs,” Hartley Powell, SC Department of Revenue director, said.
In May, Bloombergtax.com found states’ tax collection from online sellers had surged between 25% and 100% during the pandemic.
In South Carolina, the majority of the $165.7 million will go to the state’s general fund.
The Education Improvement Act Fund and Homestead Exemption Fund will each receive $41.3 million, The rest will go to cities and counties that charge local sales taxes.
That includes $14.4 million for capital projects, $17.8 million for local option, $15.6 million for schools, $13.7 million for roads, and $1.2 million for tourism development.