S.C. Code Regs. 117-308.16 — Painters

Persons doing any kind of painting where the only tangible personal property supplied by them is
the paint which they apply, are primarily rendering a service and not making retail sales. The receipts
from such painting are not subject to the sales tax. All of the paint, tools, brushes, equipment, and
supplies purchased by painters are subject to the sales tax or use tax, whichever applies, at the time of
sale to the painter.
Note, however, that where painters sell painted signs, furniture, or articles which they have
manufactured or purchased for painting for resale purposes, such painters are selling such manufac-
tured or processed articles, which sales are subject to the sales tax. The paint and other materials used
as a component part of articles to be sold are purchased tax free at wholesale.
Where painters are both consuming paints, etc., in rendering services and consuming from the same
stock the same kind of property in producing property for sale, and where the use in production is
continuous and a substantial part of the total business, and where suitable records are kept revealing
costs of all materials used in contract painting, and costs of materials used in producing for sale, the
painter using the materials for both purposes will be allowed to purchase all of the dual purpose
materials at wholesale, tax-free, and pay sales tax on the basis of gross receipts from property sold at
retail, plus the total cost of all materials used, consumed, or furnished by him in his contract painting
business.
Where the painter is in such a dual business and his records are not kept to reveal his sales and the
cost of property used in contract painting, he shall be required to pay sales or use tax on all his
purchases and in addition will be required to report and pay sales tax on all of his sales of property at
retail.
Such consumable supplies as brushes, thinners, paint remover, tools, sandpaper, etc., are, in any
event, taxable when purchased by the painter.