(A) A person distributing prizes or winnings to a resident or nonresident of five hundred dollars or more shall withhold seven percent 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.
HISTORY: 1995 Act No. 76, Section 2.
Structure South Carolina Code of Laws
Chapter 8 - Income Tax Withholding
Section 12-8-510. Parties subject to withholding laws.
Section 12-8-520. Incomes subject to withholding and amounts to be withheld.
Section 12-8-1010. Withholding exemptions and exemption certificates.
Section 12-8-1020. Change in exemptions; decrease.
Section 12-8-1040. Waiver of withholding requirements.
Section 12-8-1060. Estimated quarterly payments by employer of withholding.
Section 12-8-1510. Inapplicability of article's provisions to withholding.
Section 12-8-1520. Withholding agents' duties to deposit and pay withholdings.
Section 12-8-1530. Quarterly returns; agent to continue to file reports until certain events occur.
Section 12-8-1540. Agents shall furnish statements to taxpayers and department; contents.
Section 12-8-2010. Liability of agent failing to withhold or pay tax.