South Carolina DOR Clarifies Tax Status of Equipment Rentals With Operators

The South Carolina Department of Revenue (DOR) issued a revenue ruling providing guidance on whether a person renting or leasing tangible personal property while providing an operator or crew to operate the property is considered rendering a nontaxable service versus a taxable lease/rental. The ruling holds that a person furnished in conjunction with rental/lease equipment who utilizes skills or expertise to operate or control the equipment is rendering a nontaxable service, but a person merely monitoring, assisting with, or maintaining the equipment is not considered an operator, and the transaction is a taxable rental/lease. [S.C. Dep’t of Revenue, Revenue Ruling ...