South Carolina Code 12-36-1320. Tax on transient construction property
(B) The owner, or if the property is leased, the lessee, of transient construction property is liable for the use tax.
Terms Used In South Carolina Code 12-36-1320
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(C) The tax is computed as follows:
(1) divide the length of time the property will be used in this State by the total useful life of the property;
(2) multiply the result from item (1) by the sales price of the property;
(3) multiply the amount in item (2) by five percent. The result of the computation is the tax due.
The useful life of transient construction property must be determined by the department in accordance with the experience and practices of the building and construction trade. In the absence of satisfactory evidence as to the period of use intended in this State, it is presumed that the property will remain in this State for the remainder of its useful life.
(D) A prorated amount of the sales and use tax legally due and paid to another state on transient construction property is allowed as a credit, but only if the other state grants substantially similar tax credits on the property purchased in South Carolina. The prorated tax credit is computed as follows:
(1) divide the length of time the property was used in the other state by the total useful life of the property;
(2) multiply the result from item (1) by the state sales tax legally due and paid the other state;
(3) the lesser of the result from item (2) or the tax computed in subsection (C) is the prorated credit amount.
(E) If the state in which the property was previously used does not prorate its use tax on, or depreciate the value for use tax purposes of, transient construction property used by South Carolina contractors operating in that state, the use tax, at five percent of the sales price, applies.
(F) Transient construction property purchased and substantially used in another state is not subject to the use tax if the owner of the property uses it to construct or repair his own buildings, structures, or other property located in this State.
(G) The use, storage, or consumption of the property, when purchased for use in this State, is subject to the full amount of use tax provided in § 12-36-1310(A), regardless of the period of intended use in this State.
(H) The tax is due immediately upon transient construction property being brought into this State.