South Carolina has taken one important foundational step toward sound money. Purchases of qualifying gold, silver, and platinum bullion, coins, and currency are exempt from state sales and use tax.

However, South Carolina still taxes capital gains from precious-metals sales, does not currently recognize gold and silver as legal tender, does not maintain a state precious-metals depository or verified physical bullion reserve, does not accept tax payments in precious metals, and lacks express anti-confiscation and precious-metals contract-enforcement statutes.

The political environment shows continuing interest in reform. South Carolina lawmakers introduced legal-tender and bullion-backed electronic-payment legislation during the 2025–2026 session. Earlier legislators also proposed eliminating state capital-gains taxation on certain bullion. None of these proposals became law. Citizens for Sound Money has an opportunity to help South Carolina build on its existing sales-tax exemption and advance a more complete sound money framework.

1. Are Purchases of Precious Metals Exempt from Sales Tax in South Carolina?

Yes

South Carolina exempts the following from state sales and use tax:

* gold, silver, and platinum bullion, or combinations of those metals;
* coins that are or previously were legal tender in the United States or another jurisdiction; and
* currency.

The exemption is contained in South Carolina Code § 12-36-2120(70). Retailers must maintain documentation sufficient to identify each exempt sale. The statute does not impose a minimum purchase amount, allowing small savers to receive the same treatment as larger investors.

2. Are Sales of Precious Metals Exempt from Capital-Gains Tax in South Carolina?

No

South Carolina imposes an individual income tax and generally begins its calculation with federal taxable income. Capital gains recognized for federal purposes therefore ordinarily enter the South Carolina tax calculation, subject to state deductions and modifications. South Carolina currently allows individuals, estates, and trusts a deduction equal to 44 percent of qualifying net capital gain. This reduces the state tax burden, but it is not a complete exemption for gains arising from sales of gold or silver.

House Bill 3081, introduced during the 2023–2024 session, would have created a 100 percent deduction for capital gains from sales of gold, silver, and platinum bullion. The bill remained in the House Ways and Means Committee and did not become law.

South Carolina therefore receives no SMS point in this category.

3. Does South Carolina Have Legal-Tender Recognition for Gold and Silver?

No

South Carolina has not enacted an operative statute recognizing gold and silver as legal tender for voluntary transactions.

House Bill 3080, introduced in 2023, would have recognized foreign and domestic gold and silver coins as legal tender while preserving voluntary acceptance. The proposal remained in the House and did not become law. During the 2026 session, House Bill 5115 proposed recognizing qualifying gold and silver specie as legal tender. It also would have authorized the Comptroller General to establish or approve electronic systems for payments using currency backed by gold and silver bullion. The bill was introduced on February 5, 2026 and referred to the House Ways and Means Committee, where it remained.

House Bill 5544, introduced on April 16, 2026, separately proposed declaring qualifying gold coins, silver coins, and United States currency to be legal tender for public and private debts. It also remained in committee and was not enacted.

Because none of these proposals became law, South Carolina’s answer remains no.

4. Does South Carolina Maintain a State Precious-Metals Depository or Hold State Funds in Gold or Silver?

No

South Carolina does not currently operate a state precious-metals depository like Texas or allocate state funds to be held in Sound Money like Utah.

Failed House Bill 5115 referred to gold and silver bullion held in “the depository,” but it did not itself establish an operating state depository, and the bill did not become law.

5. Does South Carolina Have Any Mechanism to Accept Tax Payments in Precious Metals?

No

South Carolina does not currently provide an operative mechanism through which taxpayers may pay state taxes, fees, or other government obligations using physical gold, silver, or bullion-backed electronic transfers.

The South Carolina Department of Revenue administers tax filing and payment through conventional dollar-denominated methods, including its MyDORWAY electronic system. Precious metals are not identified as an approved tax-payment method.

House Bill 5115 would have permitted the Comptroller General to establish electronic systems enabling payments with currency backed by gold and silver bullion. However, the legislation did not expressly establish an operative tax-payment system and did not become law.

South Carolina therefore receives no SMS point for precious-metals tax-payment acceptance.

6. Does South Carolina Law Include Any Anti-Confiscation Protections for Gold or Silver?

No

No current South Carolina statute expressly prohibits state confiscation, requisition, seizure, or mandatory surrender of privately owned gold or silver.

Ordinary constitutional property protections and due-process requirements still apply. Precious metals may nevertheless remain subject to lawful criminal forfeiture; tax liens; creditor judgments; bankruptcy proceedings; court orders; or seizure pursuant to a valid warrant.

The recent South Carolina legal-tender proposals did not propose any broad anti-confiscation statute. House Bill 5115 focused primarily on legal-tender recognition and electronic payment systems, not protection against seizure or requisition.

7. Does South Carolina Have a Statute Enforcing Precious-Metals Contracts Through Payment in Precious Metals Rather Than Dollars?

No

South Carolina does not have a dedicated gold-clause or precious-metals contract statute requiring courts to enforce an obligation through delivery of the agreed gold or silver rather than payment of a dollar equivalent.

House Bill 3080 would have preserved voluntary agreements to tender or accept gold and silver coins, while House Bills 5115 and 5544 would have strengthened legal-tender recognition. None of these bills created an operative special contract-enforcement remedy because none became law.

Use of Gold and Silver in Commerce:

Gold and silver use in ordinary South Carolina commerce remains limited.

The state’s sales-tax exemption makes it easier for residents to acquire bullion, coins, and currency. South Carolina also has coin shops, precious-metals dealers, collectors, investors, and private businesses that may voluntarily accept gold, silver, or other forms of property in exchange.

However, South Carolina currently has:

* no legal-tender recognition for gold and silver;
* no state precious-metals depository;
* no statewide bullion-backed electronic payment system;
* no mechanism for paying taxes in precious metals; and
* no special enforcement protection for contracts denominated in gold or silver.

House Bill 5115 represented a meaningful effort to move beyond passive bullion ownership by authorizing a gold- and silver-backed electronic payment system. Its introduction demonstrates growing legislative interest, even though the bill did not advance beyond committee.

Overall Assessment

Strengths:

* Sales-tax exemption for gold, silver, and platinum bullion.
* Sales-tax exemption for qualifying coins and currency.
* No minimum purchase threshold.
* Existing network of precious-metals dealers and collectors.
* Repeated legislative interest in legal-tender recognition.
* Previous proposal to eliminate state capital-gains taxation on bullion.
* Recent proposal for a bullion-backed electronic payment system.

Remaining Weaknesses:

* State capital-gains taxation still applies to precious-metals sales.
* No enacted legal-tender recognition.
* No operating state precious-metals depository.
* No verified allocation of state funds to physical gold or silver.
* No mechanism for paying state or local taxes in precious metals.
* No express anti-confiscation statute.
* No gold-clause or specific-performance statute.
* No statewide bullion-backed payment infrastructure.

Legislative Opportunities:

South Carolina could raise its SMS by:

* enacting a complete state income-tax deduction for gains arising from sales or exchanges of gold and silver;
* recognizing gold and silver as legal tender for voluntary transactions;
* authorizing qualified private depositories to provide secure and audited custody;
* allocating a prudent portion of state reserve funds to segregated physical bullion;
* permitting taxes and fees to be paid through fully reserved precious-metals accounts;
* prohibiting confiscation without constitutionally sufficient judicial process; and
* requiring courts to enforce voluntary precious-metals contracts according to their agreed metallic terms.

Summary:

South Carolina has established one important sound money protection. Purchases of qualifying bullion, coins, and currency are exempt from state sales and use tax.

However, South Carolina still taxes capital gains from precious-metals sales and has not enacted legal-tender recognition, established a state precious-metals depository, verified holdings of physical bullion, authorized tax payments in precious metals, adopted anti-confiscation protections, or guaranteed enforcement of contracts denominated in gold and silver.

Recent legislative proposals show that interest in sound money is present within the General Assembly. The state’s next major opportunity is to convert that interest into enacted legal-tender, tax-neutrality, property-rights, reserve, and contract protections.

South Carolina Sound Money Score: 1 of 7

South Carolina’s score reflects its sales-tax exemption for qualifying precious metals. Raising the score will require lawmakers to address capital-gains taxation and enact the broader legal infrastructure necessary for gold and silver to function as money.