South Carolina Explains Temporary Storage Exclusion

The Department of Revenue issued a ruling on the qualification of property temporarily stored in South Carolina. The Department ruled that property purchased at retail (not wholesale) outside of the state and purchased for primary use outside of the state is exempt from South Carolina use tax. The party claiming this exclusion must have records proving the known intended use at time of purchase and proof showing that the purchases were retail purchases and not wholesale. For purposes of this provision, “storage” means keeping property purchased in the state for any purpose other than sale or subsequent use outside the state. (Revenue Ruling 09-17, South Carolina Department of Revenue, November 19, 2009)

Posted on March 17, 2010