Section 12-8-530 - Withholding on cash prizes or winnings; noncash prizes; exception for spectator sporting events where admission charged(A) A person distributing prizes or winnings to a resident or nonresident of five hundred dollars or more shall withhold a percentage equal to the maximum individual tax rate of each distribution made to an individual, partnership, trust, or estate and five percent of each distribution made to a corporation or other entity.(B) When withholding on noncash prizes, the person distributing the prize may either: (1) accept cash from the prize recipient for the amount of the withholding; or(2) pay all taxes required to be withheld. If this subitem is used, the withholding also becomes income for the prize recipient and the amount to be withheld is calculated as follows: (a) for individuals, partnerships, trusts, or estates, the fair market value of the prize is divided by .93 and the quotient is multiplied by .07;(b) for corporations, the fair market value of the prize is divided by .95 and the quotient is multiplied by .05.(C) This section does not apply to payments of prizes or winnings given to participants in spectator sporting events for which an admission is charged.Amended by 2024 S.C. Acts, Act No. 215 (SB 577),s 1, eff. 7/2/2024.1995 Act No. 76, Section 2.