1600.3 Exemptions and Refunds.

The only refunds which will be made with respect to cigarette stamp taxes will be for the following: (1) Cigarettes shipped out of the geographic limits of the State of South Carolina in accordance with the provisions of Section 12–21–90; (2) Damaged cigarettes in accordance with the provisions of Section 12–21–110 and any applicable regulations of the South Carolina Department of Revenue; (3) Damaged tax stamps; (4) Cigarettes returned as unsellable; (5) Cigarettes unrecoverable as a result of bad debt; and (6) Any other circumstance authorized by the General Assembly. For purposes of determining the refund for cigarettes unrecoverable as a result of a bad debt, a bad debt is an amount that is charged off as a bad debt for state income tax purposes. In the event any cigarettes to which tax stamps have been affixed are delivered to the Federal Government or any instrumentality thereof, the value of such tax stamps will not be refunded by the Department of Revenue. All refunds must be properly documented in order for the Department of Revenue to issue refunds. Proper documentation for refunds includes, but is not limited to, bills of lading, shipment receipts, documentation for shipments of cigarettes returned to a manufacturer, and any other documentation as determined by the Department of Revenue. The Department will develop forms and processes for the purpose of authorizing the refunds listed above.