South Carolina (WCIV) — According to the S.C. Department of Commerce, people who purchase or register vehicles in South Carolina will owe a new type of fee, replacing the sales tax they're used to paying, set to begin July 1, 2017.
Due to the Roads Bill, you will owe an Infrastructure Maintenance Fee (IMF) instead of sales tax. The IMF is in addition to applicable title and registration fees and property taxes. You will not be able to title or register the item until you pay the IMF.
"Customers can rest assured that the SCDMV will guide them through this transition," said Executive Director Kevin Shwedo. "We've been working with South Carolina dealers, their association, and the Department of Revenue to facilitate a smooth shift with minimal to no impact for businesses and customers."
The amount of IMF you owe is based on the sales price of the item you buy. You will owe five percent of the purchase price, but it will be no more than $500. If you purchase an item that is $9,999 or less, your IMF will be five percent of the sales price. If it is $10,000 or more, you will owe $500. The maximum tax due increased from $300 to $500.
People who move to the state with a vehicle that needs to be registered will owe a $250 IMF, in addition to applicable title and registration fees and property taxes.