S.C. Code Ann. § 12-28-530 – Increase in tax rate

(A) The tax imposed by Section 12-28-310 on the date of an increase in the tax rate set out in that section is applicable to previously taxed taxable motor fuel:
1. (1) in excess of one thousand gallons held in storage by an end user;
2. (2) inventory held for sale by a fuel vendor.
(B) The tax imposed by Section 12-28-310 is applicable to nonexempt inventory held by a person outside of the bulk transfer system in this State in quantities which, in the aggregate with respect to the person, exceed one thousand gallons, to the extent the inventory previously has not been subject to the tax imposed by this State under the predecessor motor fuel tax statute. However, no tax is payable with respect to taxable motor fuel which is dyed diesel fuel or held by an exempt user including government entities described under Sections 12-28-710(A)(6) and 12-28-710(A)(12).
(C) Persons in possession of taxable motor fuel subject to this section shall perform the following:
1. (1) take an inventory to determine the gallons in storage for purposes of determining the tax on inventory;
2. (2) deduct the amount of taxable motor fuel in dead storage;
3. (3) deduct these gallons in which tax at the full rate previously has been paid;
4. (4) take a deduction for gallons of dyed diesel fuel included in item (1) above, if appropriate;
5. (5) report the gallons listed in item (1) on forms provided by the department.
(D) The amount of the inventory tax is equal to the inventory tax rate times the gallons in storage as determined under subsection (B). The inventory tax rate is equal to the difference between the increased tax rate minus the previous tax rate to which those gallons were previously subjected to tax.
(E) Payment of this floorstock tax must be made in conformity with Section 12-28-985.