S.C. Code Regs. 117-301.10 — Hatcheries

The hatchery operator may purchase under his retail license hatchery eggs for use in hatching baby
chicks for sale. Hatchery eggs may be sold free of the tax to a hatchery operator not having a retail
license, provided, the seller thereof takes from such operator a certificate that the property is for resale
either in the original form or as baby chicks or as full grown chickens. Hatcheries engaged in the
business of hatching baby chicks for others from eggs grown by those other persons (custom hatching)
are rendering a service which is not subject to the tax.