- The South Carolina Department of Revenue ruled that scaffolding used by a contractor for insulation installation is considered a rental of tangible personal property.
- The transaction between ABC (scaffolding provider) and XYZ (insulation contractor) is subject to sales tax, regardless of how the payment is characterized.
- The delivery, assembly, and removal services are incidental to the rental of the scaffolding.
- The entire gross proceeds from the rental are taxable, with no deductions for labor, materials, or other expenses.
- ABC cannot claim a credit for sales tax previously paid on the scaffolding because it did not use a resale certificate at the time of purchase.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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