Sales and use tax falls under which category in South Carolina?

Sales and use tax in South Carolina is categorized as a state tax. This tax is administered at the state level and applies to the sale of tangible personal property and certain services within the state. The revenue generated from sales and use tax is used to fund various state programs and services, including education, public safety, and infrastructure development.

In South Carolina, the sales tax is a percentage of the sale price of goods sold, while the use tax is applied to goods purchased out of state but used within South Carolina, ensuring that purchases from different jurisdictions are subject to similar taxation. This approach prevents tax avoidance and creates a fair tax structure, ensuring that all consumers contribute to state revenue.

The other options, such as federal tax, local tax, and franchise tax, pertain to different levels or types of taxation, which do not apply directly to sales and use tax in this context. Federal taxes are imposed by the national government, local taxes are levied by municipalities or counties, and franchise taxes are charged on the rights to conduct business in a particular state, not on the sale of goods or services. Thus, recognizing sales and use tax as a state tax is vital for understanding its governance and implications within the state's taxation framework.