South Carolina. S.C. Code Ann. §§ 12-36-910 (A) and S.C. Code Ann. §§ 12-36-1310 (A) impose a sales and use tax on retailers doing business within the State. 

Amazon began collecting and remitting sales tax in 2016. The South Carolina Department of Revenue (SCDR) received calls from consumers who reported that Amazon collected sales tax on some items purchased on its website, but not others. As a result, the SCDR conducted an audit of Amazon's sales and use tax collection and remittance.

Based on its audit, the SCDR issued a Determination on June 21, 2017, stating that Amazon owed over $9 million for failing to remit sales and use tax for purchases made on its website between January 1 through March 31, 2016. The SCDR also assessed close to $3 million in penalties. The SCDR determined that Amazon was also responsible for remitting sales and use tax for items purchased through third party vendors on its website.

Amazon has filed with the South Carolina Administrative Law Court a Request for Contested Case hearing on the grounds that the SCDR's Determination is contrary to the South Carolina Sales and Use Tax Act, as well as state and federal law. The South Carolina Administrative Law Court has docketed the case.

Pleadings