I was charged tax by Apple for a Rental Movie. I live in South Carolina and they have no tax on digital goods. What gives?

Oops, I read North. :-)

However, this document appears to be located on the SC Dept. of Revenue web site and says you do have to pay use tax.

https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/RR16-5.pdf

In the end though your only way of resolving this is to contact Apple as I indicated earlier and see if you can convince them to refund the tax to you.

Is your address listed as N. Carolina?

To contact Apple:

Worldwide iTunes support -->

https://support.apple.com/country-selector/itunes

https://support.apple.com/choose-country-region/media-services

You may wish to check if there really isn't any tax in NC.

https://www.ncdor.gov/taxes-forms/sales-and-use-tax/use-tax

Individuals and businesses must pay use tax to the Department

when retailers, remote sellers, or facilitators do not collect sales or

use tax on taxable transactions.

"Common items on which sales and use tax may not have been collected and

where use tax may be due by the purchaser include, but are not limited

to:"

"An digital audio visual work. Examples include, but are not limited to, movies, motion pictures, and musical videos."