When did firefighting equipment share a fire truck's historical South Carolina $300 maximum tax under the 2008 ruling?

Plain-English summary

The South Carolina Department of Revenue treated a fire truck and qualifying firefighting equipment as one historical maximum-tax transaction when the equipment was installed, provided, or supplied with the truck and included in its purchase price. The combined truck-and-equipment sale was taxed at the lesser of 5% or $300.

The bundled treatment covered equipment such as ladders, hoses, fire extinguishers, oxygen tanks, and axes. It did not cover individual firefighters' protective clothing. Protective clothing remained taxable at 6% plus applicable Department-administered local tax even when provided with the truck.

Equipment sold separately from the vehicle was also a separate transaction. The truck received the capped treatment, while the separately sold firefighting equipment—including protective clothing—was taxed at the general rate described in the ruling.

What this means for you

Fire departments and other purchasers

Under the historical rule, the purchase contract and timing mattered. Equipment had to be part of the same vehicle sale and included in the truck's purchase price to share the cap.

Fire-truck dealers

Qualifying mounted or stowed equipment could be included with the vehicle for the maximum-tax calculation. Separate equipment invoices were taxed independently.

Protective-clothing sellers

Helmets, coats, and other individual protective clothing did not join the capped truck transaction under this ruling.

Common questions

Q: What tax applied to a fire truck sold alone?
A: The lesser of 5% of the sales price or $300 under the historical rule.

Q: Did ladders and hoses share the cap?
A: Yes, when supplied with the truck and included in its purchase price at the time of sale.

Q: Did protective clothing share the cap?
A: No. It remained subject to 6% state tax plus applicable local tax.

Q: What if equipment was purchased later?
A: It was a separate transaction taxed at the general rate described in the ruling.

Q: Is this still current guidance?
A: No. SC Revenue Ruling #18-12 expressly superseded it effective July 1, 2017.

Citations and references

• S.C. Code § 12-36-2110 (historical maximum tax and equipment supplied with a firefighting vehicle)
• S.C. Code §§ 12-36-910 and 12-36-1310 (sales and use tax)
• S.C. Code § 12-36-1110 (June 1, 2007 rate increase)
• Act 419 of 1998, Part II, § 31 (legislative clarification quoted by the ruling)
• SC Revenue Ruling #18-12 (expressly superseding guidance)

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR08-10.pdf
• Superseding guidance: SC Revenue Ruling #18-12

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214

SC REVENUE RULING #08-10

SUBJECT:

Sales of Fire Trucks and Fire Fighting Equipment
(Sales or Use Tax)

EFFECTIVE DATE:

June 1, 2007

SUPERSEDES:

SC Revenue Ruling #97-1 and all previous advisory opinions and any
oral directives in conflict herewith.

REFERENCES:

S.C. Code Ann. Section 12-36-910 (2000; Supp 2007)
S.C. Code Ann. Section 12-36-1310 (2000; Supp 2007)
S.C. Code Ann. Section 12-36-1110 (Supp 2007)
S.C. Code Ann. Section 12-36-2110 (2000; Supp 2007)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (Supp. 2000)
S. C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #05-2

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public
and to Department personnel. It is an advisory opinion issued to apply
principles of tax law to a set of facts or general category of taxpayers.
It is the Department’s position until superseded or modified by a
change in statute, regulation, court decision, or another Departmental
advisory opinion.

Question:
What amount of sales or use tax should be imposed on sales of trucks and fire fighting
equipment necessary to be mounted or stowed on a fire truck whether sold individually or as part
of the truck?
Conclusion:
The following outlines the proper sales or use tax to be imposed upon sales of trucks and fire
fighting equipment:

1. The sale of a fire truck alone is subject to tax in the amount of 5% of the truck’s sales price
   or $300, whichever is less.

1

2. Sales of fire fighting equipment such as ladders, hoses, fire extinguishers, oxygen tanks, and
axes (except for protective clothing) are part of the sale of the truck (i.e. the same
transaction) if the equipment is installed, provided, or supplied with the vehicle and included
in the purchase price at the time of the sale of the vehicle.
If the equipment (except for protective clothing) is installed, provided, or supplied with the
vehicle and included in the purchase price at the time of the sale of the vehicle, the sale of the
truck and the equipment (except for protective clothing) is taxed as one transaction. The tax
due is 5% of the combined sales price of the truck and fire fighting equipment or $300,
whichever is less.
The sale of protective clothing, whether or not installed, provided, or supplied with the
vehicle and included in the purchase price at the time of the sale of the vehicle, is subject to
the tax at the rate of 6% 1 , plus any applicable local sales and use tax administered and
collected by the Department of Revenue on behalf of a local jurisdiction.
If the equipment is not installed, provided, or supplied with the vehicle and included in the
purchase price at the time of the sale of the vehicle, the sale of the truck and fire fighting
equipment are separate and distinct transactions. The tax due on the sale of the truck is 5% of
the sales price of the truck or $300, whichever is less. The tax due on the sale of the
firefighting equipment (including protective clothing) is 6% 2 of the sales price of the
equipment, plus any applicable local sales and use tax administered and collected by the
Department of Revenue on behalf of a local jurisdiction.
Discussion:
The purpose of this document is to address the imposition of the sales or use tax on sales of
trucks and sales of fire fighting equipment mounted or stowed on a truck for it to be a fire truck.
The sales tax and use tax are transactional taxes imposed upon the privilege of the business of
selling at retail, or using, storing, or consuming tangible personal property in South Carolina. The
general state sales and use tax rate was increased from 5% to 6% on June 1, 2007; however, the
state sales and use tax rate on sales of items subject to the maximum tax remained 5% 3 .

1

The 6% state tax due on the sale of the firefighting equipment and protective clothing became effective June 1, 2007.
Prior to June 1, 2007, the state tax due on the sale of the firefighting equipment and protective clothing was 5%.

2

See footnote #1.

3

Code Section 12-36-1110, which increased the state sales and use tax rate from 5% to 6% on June 1, 2007, states:
Beginning June 1, 2007, an additional sales, use, and casual excise tax equal to one percent is
imposed on amounts taxable pursuant to this chapter, except that this additional one percent tax
does not apply to amounts taxed pursuant to Section 12-36-920(A), the tax on accommodations for
transients, nor does this additional tax apply to items subject to a maximum sales and use tax
pursuant to Section 12-36-2110 nor to the sale of unprepared food which may be lawfully
purchased with United States Department of Agriculture food coupons. (Emphasis added.)

2

Code Section 12-36-2110 establishes the maximum tax on the sale, use, storage, or consumption
of certain items and reads, in part:
(A) The maximum tax imposed by this chapter is three hundred dollars for each
sale...of each:

(2) motor vehicle;

(E) Equipment provided, supplied, or installed on a firefighting vehicle is
included with the vehicle for purposes of calculating the maximum tax doe under
this section.
The provision concerning firefighting equipment in Code Section 12-36-2120(E) was enacted in
Act 419 of 1998, Part II, Section 31A. The General Assembly also enacted the following
uncodified provision in Section 31B:
The effect of this amendment is to clarify and express the intent of the General
Assembly that the sales tax application of the sale of firefighting vehicles must
include in the calculation of the maximum tax all equipment installed, provided,
or supplied with the vehicle and included in the purchase price at the time of the
sale of the vehicle, not including individual firefighter's protective clothing.
Consequently, in determining the amount of the sales or use tax imposed on sales of fire trucks
and fire fighting equipment, the maximum tax only applies to sales of fire fighting equipment
that are provided, supplied, or installed on a firefighting vehicle as part of the same sales
transaction as the truck.
However, the maximum tax does not apply protective clothing; therefore, sales of protective
clothing are taxed at a state rate of 6%, plus any applicable local sales and use tax administered
and collected by the Department on behalf of local jurisdictions.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Ray N. Stevens
Ray N. Stevens, Director
July 18
, 2008
Columbia, South Carolina

3