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The four categories of items subject to the Solid Waste Excise Tax are defined in the statute as follows:
The imposition at the wholesale, retail or consumer level depends upon the category of the item sold as described below:
No, the Sales and Use Tax exemptions provided to farmers, manufacturers, and others do not exempt them from the Solid Waste Excise Tax.
Wholesalers include anyone who makes sale for resale including a manufacturer, distributor, importer, supplier, jobber, or wholesaler of motor oil and similar lubricants or white goods.
No, the tax is not imposed on the sale of tangible personal property containing motor oil or similar lubricants, tires, white goods, or lead-acid batteries. However, it is imposed on the separate sale of oil, tires, white goods, or lead acid batteries as a replacement part or a repair to vehicles, machines, and the like.
No, the tax is imposed only on sales of new tires, lead-acid batteries, and white goods.
Yes, the Solid Waste Tax is imposed on the wholesaler or retailer, not the purchaser, except for ex-tax motor oil. Therefore, the Solid Waste Fee is not a direct tax on the federal government, and there is no requirement the fee be passed along to the consumer (government). Note: The federal government will not be liable for the Solid Waste Tax imposed on ex-tax motor oil and similar lubricants they import into South Carolina.
Yes, the automobile dealer will be liable for the Solid Waste Excise Tax at the time the tires and batteries are withdrawn from their stock for installation on the used car.
The retailer or wholesaler must have evidence on their invoice indicating the tax has been paid by their supplier. Evidence would include a supplier's stamped or written statement on the invoice indicating the Solid Waste Tax had been paid.
No, the Solid Waste Excise Tax is not included when computing Sales Tax. This includes the refundable deposit when a lead-acid battery core is not returned to a retailer.
Examples of motor oil and similar lubricants subject to the tax include automatic transmission fluid, oil additions which are not burned or consumed in the engine, and jet engine oil. Items such as brake fluid, WD-40, hydraulic fluid, 2-cycle oil mixed with gasoline that is consumed or burned, and motor oil or lubricants used in electric motors are examples of items
not subject to the tax.
The amount of motor oil and similar lubricants subject to the Solid Waste Excise Tax should be totaled at the end of the reporting period. When the total results in a fractional gallon, the total should be rounded up to the nearest whole gallon when the fraction is one-half gallon or more and should be rounded down to the nearest whole gallon if the faction is less than one-half gallon. For example, if total motor oil sales in South Carolina for the month are 1000.75 gallons, then the amount shown on the Solid Waste Excise Tax Return should be 1001 gallons. Remember, only whole gallons should be reported on the return.
Any person purchasing motor oil or similar lubricants at wholesale in its original package or container and who exports such motor oil or similar lubricants from South Carolina may certify in writing to the seller that the motor oil or similar lubricants will be exported, and such certification, if taken by the seller in good faith, will relieve the seller of the fee otherwise imposed. The written certification should include any documentation to identify the number of gallons exported, such as sales invoice or delivery ticket.
An exemption from the Solid Waste Excise Tax imposed on motor oil and similar lubricants is provided for in the law to "for hire motor carriers" who purchase lubricating oils not for resale for use in their fleets. The for hire motor carrier must hold a Certificate of Public Convenience and Necessity or be registered with the Public Service Commission and must also (1) have a maintenance facility to service their own fleets and properly store waste oil for recycling collections, (2) have reported to the EPA the existence of storage tanks for waste oil storage, (3) maintain records of the dispensing and servicing of lubrication oil in the fleet vehicles and (4) have a written contractual agreement with an approved waste oil hauler. Qualifying carriers must apply for this exemption on using an Application for Certificate (ST-10). Upon approval, exempt carriers will be issued a South Carolina Exemption Certificate (ST-9).
The statue imposes the tax on motor vehicle, trailer and motorcycle tires as defined in Section 56-3-20(2), (4) and (13). The definitions are:
(2) Motor vehicle - Every vehicle which is self-propelled, excepts mopeds, and every vehicle which is propelled by electric power obtained from overhead trolley wire, but not operated upon rails; (4) Motor-driven cycle - Every motorcycle, including every motor scooter, with a motor which produces not to exceed five horsepower. (13) Trailer - Every vehicle with or without motive power, other than a pole trailer, designed for carrying persons or property and for being drawn by a motor vehicle and so constructed that no part of its weight rests upon the towing vehicle. Based upon the above definitions, the types of tires that are subject to the tax are new tires sold or leased for transportation of tangible personal property or persons on the streets or highways. Farm tractor tires, airplane tires, off highway machinery, used tires, recaps, retreads, lawn mower tires, and tires for vehicles propelled solely by human power, such as bicycles, garden carts, and wheel barrows are examples of tires that are not subject to the Solid Waste Excise Tax.
The tax will not be due when there is a full refund or exchange of the item. If there is a pro-rated or partial charge for the item, the tax will be due.
A wholesaler or retailer who delivers or arranges delivery of waste tires to a permitted waste tire disposal facility may apply for a refund of one dollar per tire delivered. In lieu of requesting a refund, a credit may be taken on the current return for tires delivered to a permitted facility up to the number of tires reported as taxable. A credit balance should be carried forward to the next month, or a refund requested for any overage.
No. The fee is imposed on the sale of the new item and not on replacement or repair parts. For example, a central heating and air conditioning unit is subject to the fee; however, the replacement of a compressor on an air conditioner is not subject to the fee.