South Carolina machine exemption.

Because a statute only requires a taxpayer’s use of items in its manufacturing process, regardless whether or not it is directly used in the production line, various machines were found exempt. These machines included cleaners, chemicals, buffing machines, lifts, print screen trucks, and battery chargers. Because the agreements were included in the construction contracts, the contractor, not the taxpayer, was liable for sales tax on the materials purchased in accordance with the agreement. (South Carolina Department of Revenue, v. Springs Industries, Inc., South Carolina Court of Appeals, No. 2003-UP-029 (unpublished opinion), January 8, 2003)

Posted on February 15, 2003