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ST-389 INSTRUCTIONS ST-389 I (Rev. 1/17/23) 5220
These instructions are for the paper version of the ST-389, Schedule for Local Taxes. We recommend filing the ST-389
using MyDORWAY, our free online tax portal, available at MyDORWAY.dor.sc.gov. Create a new account or log in to
get started.
The ST-389 is used to report local Sales and Use Taxes, which must be reported by county and municipality.
When completing the ST-389, all entries must be typed or neatly hand-printed.
Complete the Sales and Use Tax Worksheet on the back of the applicable state tax form (ST-3 or ST-455) before
making entries on the ST-389.
If you have a retail license or a Use Tax registration, you are required to file a tax return even if there is no tax due for the
period.
When filingNo Sales returns, enter zero on the ST-389 for the county or municipality of your business location.
IMPORTANT: If it is determined that no entry is needed on a line, leave the line blank. Do not write on the lines that do
not pertain to you.
STEP 1 ST-389 INFORMATION
Taxpayers are required to file the ST-389 with the appropriate state Sales and Use Tax return (ST-3 or ST-455) if:
The retailer is located in a county or municipality that imposes a local tax OR
The retailer is delivering into a county or municipality with a local tax
For example:
1. the retailer is shipping into a county or municipality using their own vehicles
2. the retailer has an agent or employee operating within the county or municipality
3. the retailer is shipping into the county or municipality using a contract carrier
4. the retailer is using a common carrier and maintains an office, other place of business, or property of any kind in
the county or municipality of delivery
5. the retailer advertises via media which has coverage in the county or municipality
If you do not make sales or deliveries in a county or municipality that imposes a Local Sales and Use Tax, you do not
need to complete the ST-389.
For more information see SC Revenue Ruling #09-9, available at dor.sc.gov/policy.
ST-389 WORKSHEET INSTRUCTIONS
Complete the worksheet section of the ST-389 when reporting amounts subject to a local tax or tribal sales tax, if you
sold, purchased, or delivered property for use in a county or municipality with a local tax. The worksheet is to assist you in
determining the proper amount you are required to report on the ST-389.
Item 1. Total - Gross Proceeds of Sales/Rentals, Use Tax and Withdrawals of Inventory for Own Use: Enter the
same amount reported on the worksheet of your state Sales and Use Tax return (Item 3 of the ST-3 or ST-455).
Item 2. Local Tax Allowable Deductions: Enter deductions here which are not subject to local taxes or a tribal sales tax.
All deductions should be itemized under Column A, with the deduction amount shown in Column B.
Certain transactions are subject to the state's Sales and Use Tax rate but are exempt from the local Sales and Use Tax
rate. Some examples are:
Deliveries to local counties or municipalities without local tax
Sales subject to the maximum Sales and Use Tax (such as aircrafts, boats, manufactured homes, etc.)
Quarterly and annual filers paying tax on the first reporting period after the implementation date may use the worksheet to
calculate the amounts not subject to the local tax.
Before claiming a deduction on the ST-389 worksheet, the exemptions relating to a particular local tax or the tribal tax
should be reviewed since they may differ from the state tax exemptions claimed (for example, if a deduction was itemized
on the state tax return worksheet for the 1% state tax rate reduction for individuals age 85 or older, the amount itemized
as a deduction on the state tax return worksheet would not be applicable as a deduction on item 2 of the ST-389
worksheet.)
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