Portable Restroom Rental Taxable in South Carolina

Monday, January 13th, 2014

South Carolina

The South Carolina Administrative Law Court ("Court") recently ruled that a taxpayer's provision of portable restrooms was a taxable rental rather than a non-taxable waste disposal service.

The taxpayer provided portable restrooms along with related services. These services included installing, cleaning, and maintaining the restrooms and removing and disposing of the waste.

South Carolina sales tax applies to rentals of tangible personal property but does not apply to waste disposal services. When a sale includes both taxable and non-taxable components for one lump sum, South Carolina looks to the true object of the sale to see if it is taxable. If the true object is the taxable component, the whole sale is taxable. If the true object is the non-taxable component, the whole sale is not taxable. The taxpayer argued that the true object of the sale was a non-taxable waste disposal service.

The Court determined that the true object was the rental of the portable restrooms. Without the portable restroom units, there would be no need for any of the services that the taxpayer provided. Because the true object was the taxable rental, the entire transaction was taxable.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...