How does South Carolina calculate sales or use tax on a qualifying fire truck and the firefighting equipment sold with it?

Plain-English summary

South Carolina Revenue Ruling 18-12 says a qualifying fire truck is subject to sales or use tax at 5% of its sales price or $500, whichever is less. The ruling covers the publicly owned firefighting vehicles listed in S.C. Code Section 56-3-120(6), including specified pump or water-tank vehicles, hydraulically operated ladder vehicles, and specialized support vehicles used for listed emergency functions.

Those vehicles are exempt from DMV registration and licensing. That means they are also outside the infrastructure maintenance fee, so the sales-and-use-tax exemption for items subject to that fee does not apply. The separate maximum-tax rule for motor vehicles instead produces the 5%/$500 result.

Non-clothing firefighting equipment—such as ladders, hoses, fire extinguishers, oxygen tanks, and axes—joins the truck's maximum-tax transaction only if all of the ruling's conditions are met: the equipment is installed, provided, or supplied with the truck; the same vendor sells it; and it is included in the purchase price when the truck is sold. When those conditions are met, 5% or $500 is calculated on the combined truck-and-equipment price.

Protective clothing never joins the maximum-tax calculation. It is taxed at the general state rate plus applicable Department-administered local sales and use tax, even if the same vendor supplies it with the truck. Other equipment is also taxed separately at the general state and applicable local rates if any of the package conditions is missing.

What this means for you

Fire departments and purchasing officials

Confirm first that the vehicle falls within Section 56-3-120(6). Then review the invoice and transaction structure. Eligible equipment receives the truck's cap only when it is part of the same vendor's truck sale and included in the purchase price at that time.

Fire-truck and equipment vendors

Document which equipment is installed, provided, or supplied with the truck and show that it is included in the truck transaction. Equipment sold later, by another vendor, or outside the truck price is a separate taxable sale. Keep protective clothing outside the maximum-tax calculation in every case.

Accountants and tax professionals

The ruling draws its line from Section 12-36-2110(E) and the uncodified intent language in Act 419 of 1998. The key distinction is not merely whether equipment is used for firefighting, but whether qualifying non-clothing equipment is part of the same truck transaction under all three stated conditions.

Common questions

Q: Why does sales or use tax apply if the fire truck is exempt from DMV registration?
A: Because the registration exemption also keeps the vehicle outside the infrastructure maintenance fee. The sales-and-use-tax exemption for items subject to that fee therefore does not apply.

Q: What is the tax on the fire truck by itself?
A: Under the ruling, 5% of the truck's sales price or $500, whichever is less.

Q: When does firefighting equipment share the $500 maximum?
A: When non-clothing equipment is supplied with the truck, sold by the same vendor, and included in the purchase price at the time of the truck sale.

Q: Is protective clothing included if it ships with the truck?
A: No. The ruling taxes protective clothing separately at the general state rate plus applicable local sales and use tax regardless of how it is supplied or invoiced.

Q: What if hoses or ladders are bought separately?
A: They are taxed as a separate equipment sale at the general state rate plus applicable local tax because they are not part of the qualifying truck transaction.

Citations and references

• S.C. Code Ann. Sections 12-36-910, 12-36-1110, and 12-36-1310 (sales and use tax)
• S.C. Code Ann. Section 12-36-2110(A) and (E) (maximum tax for motor vehicles and qualifying firefighting equipment)
• S.C. Code Ann. Section 12-36-2120(83) (exemption for items subject to the infrastructure maintenance fee)
• S.C. Code Ann. Section 56-3-627 (infrastructure maintenance fee)
• S.C. Code Ann. Section 56-3-120(6) (registration and licensing exemption for specified publicly owned firefighting vehicles)
• Act 419 of 1998, Part II, Section 31A and 31B (equipment included with a firefighting vehicle)

Subject

Sales of Fire Trucks and Firefighting Equipment

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR18-12.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC REVENUE RULING #18-12

SUBJECT:

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

EFFECTIVE DATE:

July 1, 2017

SUPERSEDES:

SC Revenue Ruling #08-10 and all previous advisory opinions and any
oral directives in conflict herewith.

REFERENCES:

S.C. Code Ann. Section 12-36-910 (2014)
S.C. Code Ann. Section 12-36-1310 (2014)
S.C. Code Ann. Section 12-36-1110 (2014)
S.C. Code Ann. Section 12-36-2110 (2014; Supp. 2017)
S.C. Code Ann. Section 56-3-627 (2018; Supp. 2017)
S.C. Code Ann. Section 56-3-120(6) (2018)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

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.

Purpose of Update:
In July 2017, the South Carolina Infrastructure and Economic Development Reform Act was
enacted to address the funding of significant road maintenance. To accomplish this purpose, the
“maximum tax” for sales and use taxes was increased to $500 from $300 for certain items, and a
new “infrastructure maintenance fee” was imposed upon the registration of vehicles with the
South Carolina Department of Motor Vehicles. This document is being revised to reflect these
law changes and otherwise remains unchanged.

1

Introduction:
Code Section 56-3-627 imposes an infrastructure maintenance fee upon an owner’s first
registration of a vehicle or other item required to be registered with the South Carolina
Department of Motor Vehicles pursuant to Chapter 3 of Title 56. Code Section 56-3-120(6),
however, exempts certain firefighting vehicles from the registration and licensing requirements
in Chapter 3 of Title 56. This provision reads:
The following vehicles are exempt from registration and licensing under this
chapter:

(6) firefighting vehicles that are publicly owned by the state or a county,
municipality, or special purpose district as follows:
(a) motorized firefighting vehicles that carry a pump or water tank
in excess of three hundred gallons;
(b) motorized firefighting vehicles containing a hydraulically
operated ladder; and
(c) specialized support vehicles that specifically transport
equipment utilized for rescue operations, hazardous materials
response, wildfire emergencies, breathing air refill support, and
incident command.
Code Section 12-36-2120(83) provides a sales and use tax exemption for sales of items which
are subject to the infrastructure maintenance fee. Based on the above, any firefighting vehicle
identified in Code Section 56-3-120(6) is exempt from registration and licensing and is thereby
exempt from the infrastructure maintenance fee in Code Section 56-3-627. Since firefighting
vehicles identified in Code Section 56-3-120(6) are exempt from the infrastructure maintenance
fee, sales or use tax applies to sales of these vehicles.
Question:
What amount of sales or use tax should be imposed on sales of fire trucks which are exempt from
registration and licensing under Code Section 56-3-120(6) and firefighting 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 fire trucks which
are exempt from registration and licensing under Code Section 56-3-120(6) and firefighting
equipment:

1. The sale of a fire truck alone is subject to sales or use tax in the amount of 5% of the truck’s
   sales price or $500, whichever is less.

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2. Sales of firefighting 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 truck, is sold by the
same vendor as the truck, and is included in the purchase price at the time of the sale of the
truck.
If the equipment (except for protective clothing) is installed, provided, or supplied with the
truck, is sold by the same vendor as the truck, and is included in the purchase price at the
time of the sale of the truck, the sale of the truck and the equipment (except for protective
clothing) is taxed as one transaction. The sales or use tax due is 5% of the combined sales
price of the truck and firefighting equipment or $500, whichever is less.
The sale of protective clothing, whether or not installed, provided, or supplied with the truck,
sold by the same vendor as the truck, or included in the purchase price at the time of the sale
of the truck, is subject to sales or use tax at the rate of 6%, plus any applicable local sales and
use tax administered and collected by the Department of Revenue on behalf of a local
jurisdiction. 1
If the equipment is not installed, provided, or supplied with the truck, is not sold by the same
vendor as the truck, or is not included in the purchase price at the time of the sale of the
truck, the sale of the truck and firefighting equipment are separate and distinct transactions.
The sales or use tax due on the sale of the truck is 5% of the sales price of the truck or $500,
whichever is less. The sales or use tax due on the sale of the firefighting equipment
(including protective clothing) is 6% 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. 2
Discussion:
The purpose of this document is to address the imposition of the sales or use tax on sales of fire
trucks which are exempt from registration and licensing requirements under Code Section 56-3120(6) and sales of firefighting equipment mounted or stowed on a 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 is 6%. The state sales and use tax rate on sales of items subject
to the maximum tax is 5%. 3

1
Sales or use tax applies to the sale of protective clothing whether the fire truck is subject to a sales or use tax or an
infrastructure maintenance fee.
2
Even if a fire truck is subject to an infrastructure maintenance fee instead of the sales or use tax, state and local
sales or use tax applies to the sale of firefighting equipment (including protective clothing) which is not installed,
provided, or supplied with the truck, is not sold by the same vendor as the truck, or is not included in the purchase
price at the time of the sale of the truck.
3
Code Section 12-36-1110. This statute increased the state sales and use tax rate by 1% beginning June 1, 2007,
from 5% to 6% for most items. The 1% increase did not apply to items subject to a maximum sales and use tax.

3

Code Section 12-36-2110 establishes a maximum tax ($500 cap) on the sale, use, storage, or
consumption of certain items and reads, in part:
(A)(1) The maximum tax imposed by this chapter is [five] 4 hundred dollars for
each sale...of each:

(b) motor vehicle;

(E) Equipment provided, supplied, or installed on a firefighting vehicle is
included with the vehicle for purposes of calculating the maximum tax due under
this section.
The provision concerning firefighting equipment in Code Section 12-36-2110(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 firefighting equipment, the maximum tax only applies to sales of firefighting equipment that
is provided, supplied, or installed on a fire truck as part of the same sales transaction as the truck.
However, the maximum tax does not apply to 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 of Revenue on behalf of local jurisdictions.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
June 11
, 2018
Columbia, South Carolina

4

Effective after June 30, 2017, the maximum sales and use tax imposed pursuant to Chapter 36 of Title 12 on the
sale, lease, or registration of an item enumerated in Code Section 12-36-2110(A)(1) is increased from $300 to $500.
Code Section 12-36-2110(A)(4).

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