South Carolina § 12-8-530 Withholding on cash prizes or winnings; noncash prizes; exception for spectator sporting events where admission charged.

South Carolina Statutes

§ 12-8-530 — Withholding on cash prizes or winnings; noncash prizes; exception for spectator sporting events where admission charged.

South Carolina § 12-8-530

Title 12TAXATION

Ch. 8INCOME TAX WITHHOLDING

This text of South Carolina § 12-8-530 (Withholding on cash prizes or winnings; noncash prizes; exception for spectator sporting events where admission charged.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 12-8-530 (2026).

Text

(A)A person distributing prizes or winnings to a resident or nonresident of five hundred dollars or more shall withhold a percentage equal to the maximum individual tax rate of each distribution made to an individual, partnership, trust, or estate and five percent of each distribution made to a corporation or other entity.

(B)When withholding on noncash prizes, the person distributing the prize may either:

(1)accept cash from the prize recipient for the amount of the withholding; or (2) pay all taxes required to be withheld. If this subitem is used, the withholding also becomes income for the prize recipient and the amount to be withheld is calculated as follows:

(a)for individuals, partnerships, trusts, or estates, the fair market value of the prize is divided by .93 and the quotient

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(A) A person distributing prizes or winnings to a resident or nonresident of five hundred dollars or more shall withhold a percentage equal to the maximum individual tax rate of each distribution made to an individual, partnership, trust, or estate and five percent of each distribution made to a corporation or other entity. (B) When withholding on noncash prizes, the person distributing the prize may either: (1) accept cash from the prize recipient for the amount of the withholding; or (2) pay all taxes required to be withheld. If this subitem is used, the withholding also becomes income for the prize recipient and the amount to be withheld is calculated as follows: (a) for individuals, partnerships, trusts, or estates, the fair market value of the prize is divided by .93 and the quotient is multiplied by .07; (b) for corporations, the fair market value of the prize is divided by .95 and the quotient is multiplied by .05. (C) This section does not apply to payments of prizes or winnings given to participants in spectator sporting events for which an admission is charged.

Legislative History

HISTORY: 1995 Act No. 76, SECTION 2; 2024 Act No. 215 (S.577), SECTION 1, eff July 2, 2024. Effect of Amendment 2024 Act No. 215, SECTION 1, in (A), substituted "a percentage equal to the maximum individual tax rate" for "seven percent".