Fees charged to a road construction contractor for mixing concrete for use in road construction were exempt from South Carolina sales and use tax since the true object of the transaction was the provision of mixing services. The service provider operated a mobile concrete batch plant on a project site and mixed concrete for the contractor’s road construction project. The contractor purchased the aggregates and cement needed for the operator to mix the concrete. The service provider provided the water needed to mix the concrete. The aggregates and cement remained the contractor’s property at all times. The service provider mixed the aggregates, cement and water into concrete. Generally, sales of services are exempt in South Carolina if the services are the true object of the transaction. The true object of this transaction is providing a mixing service. As such, the fees charged to the contractor are exempt from sales and use tax. The contractor’s purchases of aggregates and cement are taxable. (Private Letter Ruling #20-3, South Carolina Department of Revenue, March 31, 2020)