SC Department of Revenue Offers Guidance on Fuel Surcharges, ‘Inflation Fees’

November 4, 2022 Last Edit: June 5, 2025

SC Department of Revenue Offers Guidance on Fuel Surcharges, 'Inflation Fees'

The South Carolina Department of Revenue has issued a pair of reports offering guidance on how small businesses and other retailers should handle fuel surcharges and so-called “inflation fees,” or fees to help offset cost increases caused by inflation or supply chain issues. In the first report, Revenue says that a separately stated “inflation fee,” “convenience fee,” or similar type of fee charged by a retailer as part of the retail sale of tangible personal property generally is subject to state and local sales and use taxes. Click here to learn more. In a draft report issued on Thursday, Nov. 3, the department said fuel surcharges charged by retailers when delivering merchandise should be considered “gross proceeds of sales” or “sales price” and generally are subject to the sales tax as well. Read the draft report here. NFIB State Director Ben Homeyer said, “Higher fuel costs and supply chain issues have forced a lot of small businesses to pass the increase along to their customers in the form of extra fees. It’s important for small business owners to understand the rules to avoid problems down the road.”

Topics:

Taxes

State:

South Carolina

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Split-screen live news: female anchor left, man in vest right; economy alert banner and stock ticker visible at bottom.

June 22, 2026

VIDEO: On NewsNation, NFIB Member Discusses How 20% Small Business Deduction Has Provided Certainty For Small Businesses

WASHINGTON, D.C. (June 22, 2026) – West Virginia small business owner and NFIB member Michael Ervin joined Markie Martin on NewsNation Thursday to discuss the …