S.C. Code Regs. 117-305.8 — Meals Served by Boarding Houses

Food furnished by operators of boarding houses is not considered to be sold at retail when the
charge for such food is a lump sum covering meals for a week or for a month when such food is not
offered for sale to the general public. The supplier of foodstuffs is liable for the sales tax on sales to
the operator at the time of the sale to him. The boarding house operator is considered to be the user
of the materials he purchases.
Note, however, in instances where the boarding house operator is liable for the license and the tax
under Section 12-36-920 he is liable for the tax measured by his gross proceeds of sales of meals plus
gross proceeds derived from the rental or charges for rooms, lodgings, or accommodations furnished
to transients. In this instance the properties which become a component of the meals prepared for
sale are purchased at wholesale, tax-free. All other items of tangible personal property, such as
heating and cooking fuels, furniture, linens, appliances, radios, and television sets are subject to the tax
at the time of purchase by the boarding house operator.