Department of Revenue

117-309.13. Sellers of Automobile Seat Cover and Top Linings. Seat covers and prefabricated top linings are recognized units of tangible personal property which, when sold, are subject to the tax on the total sales price without any deduction for cost of materials, labor costs, o…

117-309.14. Sellers of Ice Cream Freezers. Sales of ice cream freezers of the type used on trucks or in retail outlets for the making of ice cream are subject to the tax.

117-309.15. Rentals and Leases. The gross receipts or gross proceeds proceeding or accruing from the leasing or renting of tangible personal property are subject to the sales or use tax. When on long-term continuing lease agreements where the lessor is required to furnish, for a …

117-309.16. Materials Used to Recondition Automotive Vehicles for Resale. The purchases of materials and parts by automobile dealers for purposes of reconditioning automotive vehicles for resale are construed to be purchases of tangible personal property at wholesale and are, the…

117-309.17. Withdrawals From Stock, Merchants. To be included in gross proceeds of sales is the money value of property purchased at wholesale for resale purposes and subsequently withdrawn from stock for use or consumption by the purchaser. The value to be placed upon such goods…

117-309.2. Photographers, Photo Finishers, and Photo Copiers. Photographers operating photographic studios for the purpose of taking photographs and portraits are primarily engaged in the business of selling tangible personal property to their customers and such sales are taxable…

117-309.3. Printers. Printers are engaged in the business of producing tangible personal property and their sales of printed matter such as catalogues, books, letterheads, bills, envelopes, folders, advertising circulars, and the like, to purchasers who use or consume these artic…

117-309.4. Artists. Artists engaged in the business of designing, sketching, engraving, drawing or painting upon paper, canvas, wood or other materials and selling such designs, sketches, engraving, drawings or paintings to purchasers for use or consumption and not for resale, ar…

117-309.5. Sellers of Custom-made Items. Where persons contract to manufacture, compound, process, or fabricate their materials into articles of tangible personal property according to the special order of their customers, the total receipts from the sales of such articles are su…

117-309.6. Machine Shops. Property manufactured or fabricated by machine shops and custom foundries is subject to the sales tax, except when sold for resale purposes or when exempted by one of the exemptions found in the sales and use tax law. In doing repair work, the machine sh…

117-309.7. Ship Chandlers. Ship chandlers sell marine supplies to operators of all kinds of watercraft and to others. The sale or sales by ship chandlers of fuel, lubricants and supplies for use aboard ships plying on the high seas engaged in trade or commerce between South Carol…

117-309.8. Undertakers. Caskets, grave vaults, shrouds, and other tangible personal property furnished by undertakers and funeral directors in rendering burial services are sold by them at retail. These sales are subject to the sales tax. Where there is a separation of services f…

117-309.9. Sign Companies. A person engaged in the business of erecting, on properties owned or controlled by him, signs for the display of products of a second party for a consideration is deemed to be engaged in the business of selling a service. A tax is due measured by the pu…

117-310. Freight and Delivery Charges. Whether or not freight, delivery, or transportation charges may be deducted by the seller from the selling price of tangible personal property sold for use or consumption, in computing his liability for tax under the sales and use tax law, d…

117-310.1. Transportation Costs, Sellers. In no event may a seller deduct costs of bringing property to his place of business or costs of delivering property from factory to his customer when such factory-to-customer transportation is paid by the seller either to a transportation…

117-311. Railroads. The following addresses the application of the sales and use tax to the transactions of railroads. The list of transactions discussed is not all inclusive.

117-311.1. Railroad Companies, Sales to. Some railroads maintain storehouses, in South Carolina for the temporary storage of materials and supplies. Some of these materials and supplies are for use in South Carolina and some are for use in other states. Frequently, when materials…

117-311.10. Ties and Timbers, Constructive Delivery of. Ties and timbers are taxable when sold under bulk contract, with the purchaser inspecting and approving the material at the plant or yard of the seller and the seller segregating and allotting the approved material to the pu…

117-311.11. Meals Served by Railroads, Airlines, Etc. Sales of meals, drinks, etc., by railroads within this state are subject to the sales tax. Meals, etc., served by railroads as a part of the transportation service, for which no separate charge is made, are not required to be …

117-311.2. Railroad Companies—Crossties and Timbers. Crossties and timbers sold to or used by railroad companies are subject to the sales or use tax, whichever may apply, on the following basis: (a) Where a railroad buys in this state untreated ties or timber paying the South Car…

117-311.3. Railroad Companies—Sales to of Crossties and Timbers by Producer. The gross proceeds of the sale of timber when sold in the original state of production or preparation for sale and when sold by the producer thereof or by members of his immediate family are exempted fro…

117-311.4. Railroad Companies—Machines. Machines and machinery when sold to or used by railroad companies in maintaining, repairing, or reconditioning their equipment are subject to the sales or use tax, whichever may apply. The machine exemption is not construed as applying to m…

117-311.5. Railroad Rails. Railroad rails, crossties, frogs, spikes, etc., do not in themselves constitute machines or machinery when used in the construction of a railway or railroad either on or above ground or in a mine or quarry. This material is rather in the nature of build…

117-311.6. Railroads, Lumber Used for Repairing Railroad Cars. Lumber especially fabricated for use in repairing railroad cars is entitled to be purchased free of the tax under Section 12-36-2120(20), which exempts, among other things, from payment of sales or use taxes, railroad…

117-311.7. Railroads, Motor Oil Used in Diesel Engines. Motor oil of the type used in the operation of a diesel engine for lubricating purposes does not qualify for fuel exemption even though it may be entirely consumed in such operation.

117-311.8. Ties and Timbers. Ties and timbers, treated or untreated, are subject to sales or use tax when delivered by the seller to railroads in South Carolina. The seller must report and remit tax on these sales.

117-311.9. Ties and Timbers in Interstate Commerce. Ties and timbers sold FOB South Carolina shipping point on a purchase order requiring the seller to ship to out-of-state destination in interstate commerce are not subject to sales tax regardless of whether or not shipment is ma…

117-312. Containers and Other Packaging Material. The statute provides an exemption (Section 12-36-2120) and an exclusion (Section 12-36-120) for containers and other packaging material. The following explains the application of the exemption and exclusion in certain situations.

117-312.1. Containers and Packaging Materials, Sales of to Licensed Retailers. Licensed retailers purchase free of sales or use taxes wrapping paper, wrapping twine, paper bags and containers for use incident to the delivery of tangible personal property sold by them. They also p…

117-312.2. Containers, Beverage Boxes and Crates. Especially designed crates and boxes of the type used by distributors of soft drinks or milk products retained by the purchaser of such products for reuse by the distributor thereof may be purchased free of sales or use taxes. The…

117-312.3. Packaging Materials. Section 12-36-120 excludes from the measure of the sales or use taxes the gross proceeds of the sale of ‘‘ TTT materials, containers, cores, labels, sacks or bags used incident to the sale and delivery of tangible personal property, or used by manu…

117-312.4. Advertising Materials. Printed advertising materials and/or price lists placed into cartons or packages with tangible personal property being packaged for shipment or sale are subject to the sales or use tax.

117-312.5. Multiform Invoices. Multiform invoices used to invoice the customer and also to serve as a packing slip and address label are subject to the sales or use tax.

117-312.6. Grease, Protective. Grease used as a protective coating for manufactured products while in storage is purchased at retail for such use and subject to the tax. This material is a supply item which is used or consumed by the manufacturer. Grease used as a protective coat…

117-312.7. Rust Preventives. Petroleum products and other materials used as rust preventives or for surface protection of metal products while in storage are subject to sales or use tax. Petroleum products and other materials used as rust preventives or for surface protection of …

117-312.8. Icing of Perishables. The charge for ice when sold to common carriers for the icing of perishables during shipment or transshipment, will include the cost of transportation where the ice is transported to the truck loading platform, or to a storage warehouse in the ice…

117-313. Labor. The following addresses the application of the sales and use tax to fabrication labor, subcontracted labor, installation labor, and alteration labor. There are many sales and use tax transactions involving labor and the following is not all-inclusive.

117-313.1. Labor, Fabrication. No method of billing will serve to exempt from the measure of the tax the cost of materials used, labor or service cost, interest charges, losses or any other expenses whatsoever that are a part of the manufacturing, compounding, processing or fabri…

117-313.2. Subcontracted Labor, Repairs. In no event may payments for the repair, renovating or rebuilding of tangible personal property for resale be deducted from gross proceeds of sales when any repair materials are furnished by the person purchasing such services for sale or …

117-313.3. Installation Charges. Not subject to the sales or use tax are charges for installation incident to the sale of tangible personal property when such charges are separately stated from the sales price of the property on billing to customers and provided the seller’s book…

117-313.4. Alteration Charges. Expenses borne by the seller of clothing for alteration charges, whether such services are performed by the seller or subcontracted, are not deductible from gross proceeds of sales. Conversely, a charge for alteration services made in addition to th…

117-314. Construction. Sales of building materials to contractors, builders, or landowners for resale or use in the form of real estate are retail sales in whatever quantity sold.

117-314.1. Sales of Building Materials. Sales of building materials for use in adding to, repairing or altering real property, are subject to the sales or use tax at the time of purchase even though the property erected therefrom may be subsequently leased or rented to the person…

117-314.10. Machines, Pipe Threading. Pipe threading machines used for construction purposes by a contractor or other builder do not come within the machine exemption.

117-314.11. Federal Government Construction Contracts. Sales to, or purchases by, a construction contractor of tangible personal property for use in a federal government construction project in South Carolina for which the contractor has a written contract with the federal govern…

117-314.2. Building Materials. Building materials when purchased by builders, contractors, or landowners for use in adding to, repairing or altering real property are subject to either the sales or use tax at the time of purchase by such builder, contractor, or landowner. ‘‘Build…

117-314.3. Transferred Property, Use Tax Liability. Building materials transferred from out-of-state into South Carolina for use, storage, or consumption are assumed to have been purchased for such use, storage, or consumption in South Carolina and are subject to the South Caroli…

117-314.4. Awnings. Generally, an awning attached to a building as a permanent fixture is a part of the building and comes within the provisions covering the sale of building materials. Metal or other permanent type awnings attached to buildings with screws or bolts or otherwise …

117-314.5. Elevators. The component parts of an elevator constitute building materials within the meaning of the act. The sale of elevator components to contractors, builders or landowners for use in the form of real estate is, therefore, a retail sale notwithstanding that the pu…

117-314.6. Pumps. Well pumps when installed become realty along with well casing, pump house, well connections, etc. The person who installs the pump is the purchaser at retail who must pay sales tax or use tax, as the case may be.