Advisory Opinions N° PLR93-7, South Carolina Department of Revenue Written Determinations, 1993

• Year: 1993
• Published date: 03 November 2993
• Docket Number: PLR93-7
• Subject Matter: Sales & Use Tax
• Type of Document: Private Letter Ruling

SC PRIVATE LETTER RULING #93-7

TO: ZIP Company

TAX MANAGER: John P. McCormack

SUBJECT: Machines and Equipment Stored and Repaired in South Carolina

(Sales and Use Tax)

DATE: November 3, 2993

REFERENCES: S.C. Code Ann. Section 12-36-2120(17) (Supp. 1992)

S.C. Code Ann. Section 12-36-120 (Supp. 1992)

S.C. Code Ann. Section 12-36-1310 (Supp. 1992)

S.C. Code Ann. Section 12-36-1370(B) (Supp. 1992)

S.C. Code Ann. Section 12-36-140 (Supp. 1992)

AUTHORITY: S.C. Code Ann. Section 12-4-320 (Supp. 1992)

SCOPE: A Private Letter Ruling is a temporary document issued to a taxpayer,

upon request, and it applies to the specific facts and circumstances related

in the request.

Private Letter Rulings have no precedential value and are not intended for

general distribution.

Question:

Is ZIP Company liable for sales and use taxes with respect to the purchase or transfer of

machines, equipment or repair parts for repair, reconditioning and testing in South Carolina, as

described in the facts, prior to subsequent shipment of these items to a new manufacturing

facility in Mexico?

Facts:

ZIP Company (“ZIP”), with headquarters in ZIP, USA, is a manufacturer of automotive ride

products for the commercial market. The primary products manufactured are shocks and struts

for original equipment and aftermarket sales. In the United States, ZIP has manufacturing plants

in South Carolina, Arkansas, Georgia, and Nebraska. They also have an assembly facility in

Delaware. Outside of the United States, ZIP has manufacturing plants in Canada, Belgium,

Australia, the United Kingdom, and Brazil.

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