South Carolina income tax: Guidance on phase-in of single sales factor apportionment method

Revenue Ruling #09-15, S.C. Dept. of Rev. (11/17/09). The department has issued guidance regarding statutory provisions enacted in 2006 that began to phase-in single sales factor apportionment for certain in-state manufacturers for taxable years beginning after 2006. The provisions specifically apply to taxpayers whose principal business in the state is:

- Manufacturing or any form of collecting, buying, assembling, or processing goods and materials within South Carolina, or
- Selling, distributing, or dealing in tangible personal property within South Carolina.

This change is being phased-in for tax years beginning in 2007 through 2011.

For tax years beginning in 2011, this single sales factor apportionment method will replace the current three factor apportionment method (property, payroll, sales).