Under the superseded RR 97-1, when did firefighting equipment share a fire truck's $300 maximum sales or use tax?

Plain-English summary

South Carolina Revenue Ruling 97-1 said a fire truck by itself was subject to sales or use tax at five percent of its sales price or $300, whichever was less. Certain firefighting equipment could share that same maximum when it was part of the truck transaction.

To qualify, the equipment had to be necessary for the truck to function as a fire truck, sold by the same vendor, and mounted or stowed on the truck before the customer took possession or title. When all three conditions were met, the five-percent/$300 calculation applied to the combined truck-and-equipment price.

If any condition failed, the transactions were separate even if one contract covered both. The truck kept its maximum, while the equipment was taxed at five percent of its full sales price under the ruling.

Equipment distinctions

• Ladders, hoses, and fire extinguishers could join the truck transaction when all stated conditions were met.
• Equipment had to be mounted or stowed before the buyer took title or possession.
• Equipment delivered separately or installed later was a separate taxable sale.
• Protective clothing, individual firefighters' oxygen tanks, and axes were treated as equipment for firefighters rather than equipment necessary to make the vehicle a fire truck, so they were separately taxed.

Common questions

Q: Did putting truck and equipment on one invoice make one capped transaction? No. The ruling required all three substantive conditions, regardless of billing format.

Q: What if the same vendor installed the equipment after delivery? The equipment was a separate transaction and did not share the truck's maximum.

Q: Did all firefighting equipment qualify for the cap? No. The ruling excluded items serving individual firefighters rather than making the truck a fire truck.

Q: Is the $300 maximum current? No. RR 08-10 superseded this ruling, and RR 18-12 later superseded RR 08-10 with different law and amounts.

Citations and references

• S.C. Code Ann. § 12-36-910 (sales tax)
• S.C. Code Ann. § 12-36-1310 (use tax)
• S.C. Code Ann. § 12-36-2110 (motor-vehicle maximum tax)
• SC Revenue Ruling #08-10 (expressly superseded RR 97-1)
• SC Revenue Ruling #18-12 (later superseded RR 08-10)

Subject

Sales of Fire Trucks and Fire Fighting Equipment

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR97-1.pdf

Original ruling text

State of South Carolina

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

SC REVENUE RULING #97-1

SUBJECT:

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

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

All previous documents and any oral directives in conflict herewith.

REFERENCES:

S. C. Code Ann. Section 12-36-910 (Supp. 1996)
S. C. Code Ann. Section 12-36-1310 (Supp. 1996)
S. C. Code Ann. Section 12-36-2110 (Supp. 1996)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (Supp. 1996)
SC Revenue Procedure #94-1

SCOPE:

A Revenue Ruling is the Department of Revenue's official advisory
opinion of how laws administered by the Department are to be applied to
a specific issue or a specific set of facts, and is provided as guidance for
all persons or a particular group. It is valid and remains in effect until
superseded or modified by a change in the statute or regulations or a
subsequent court decision, Revenue Ruling or Revenue Procedure.

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 proper state sales or use tax to be imposed upon sales of trucks and fire fighting equipment
is as follows:

1. The sale of a truck alone is subject to tax in the amount of 5% of the truck’s sales price or
   $300, whichever is less.
2. Sales of fire fighting equipment such as ladders, hoses, and fire extinguishers are part of the
   sale of the truck (i.e. the same transaction) if the equipment is:

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(a) necessary for the truck to be a fire truck 1 ;
(b) sold to the customer by the same vendor as the truck; and,
(c) mounted or stowed on the truck prior to the time the customer takes possession of or title
to the truck.
If all the above requirements are met, the sale of the truck and the equipment 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.
If any of the above requirements are not met, 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 equipment is 5%
of the sales price of the equipment. This is true even if the sales price of the truck and the
equipment are billed in one contract.
Discussion:
The purpose of this document is to address the imposition of the state 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.
In accordance with South Carolina Code '12-36-910(A):
A sales tax, equal to five percent of the gross proceeds of sales, is imposed upon every
person engaged or continuing within this State in the business of selling tangible personal
property at retail.
In accordance with South Carolina Code '12-36-1310(A):
A use tax is imposed on the storage, use, or other consumption in this State of tangible
personal property purchased at retail for storage, use, or other consumption in this State, at
the rate of five percent of the sales price of the property, regardless of whether the retailer is
or is not engaged in business in this State.
South Carolina Code 12-36-2110(A), however, provides an exception to the 5% state tax rate.
This section establishes a maximum tax on the sale, use, storage, or consumption of certain
items, such as motor vehicles. Fire trucks are motor vehicles.

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Equipment relating to firefighters rather than to the truck, such as protective clothing, individual
firefighters’ oxygen tanks or axes, is not considered equipment necessary on a fire truck for it to be a fire
truck. Therefore, sales of such items are separate from the sale of the truck and are taxable at 5% of the
sales price of the equipment.

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Since the South Carolina sales and use taxes are transactional taxes, the maximum tax does not
apply to sales of fire fighting equipment that are not part of the same transaction as the truck.
Consequently, in determining the amount of the sales or use tax imposed on sales of trucks and
fire fighting equipment, the specific transaction(s) involved as well as the types of property
involved in the transaction(s) must be examined.
The following examples provide guidance in determining whether fire fighting equipment is part
of the same transaction as the truck.
EXAMPLE 1:
A vendor sells a customer a fire truck. Under the sales contract, the vendor includes the fire
fighting equipment that is necessary on a truck for it to be a fire truck. The equipment is mounted
or stowed on the fire truck prior to the customer taking possession of or title to the fire truck. In
this instance, the sale by the vendor of the truck and the equipment is one transaction. The
amount of tax due is 5% of the total or combined sales price of the truck and the equipment or
$300, whichever is less. This is analogous to the sale by an automobile retailer of an automobile
with a spare tire stowed in the trunk of the automobile prior to the customer taking possession of
or title to the car (i.e. one transaction.)
EXAMPLE 2:
A vendor sells a customer a truck without any equipment. The vendor also sells the customer fire
fighting equipment that is necessary on a truck for it to be a fire truck. The equipment will be (1)
delivered to the customer separate from the truck, and/or (2) installed after the customer takes
possession of or title to the truck. The sale of the equipment is not part of the sale of the truck
(i.e. two, separate transactions.) The sale of the truck is subject to the $300 maximum tax. The
sale of the equipment is a separate transaction and is subject to tax at 5% of the sales price of the
equipment. This is analogous to the sale by an automobile retailer of an automobile and the
separate sale of an option, such as a special sound system, to be installed after the customer takes
possession of or title to the car.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Burnet R. Maybank III
Burnet R. Maybank III, Director

Columbia, South Carolina
February 11
, 1997

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