S.C. Code Regs. 117-308.8 — Hospitals, Infirmaries, Sanitariums, Nursing Homes and like Institutions

Hospitals, infirmaries, sanitariums, nursing homes and like institutions are engaged primarily in the
business of rendering services. They are not liable for the sales tax with respect to their gross proceeds
or receipts from meals, bandages, dressings, drugs, x-ray photographs and other tangible personal
property where such property is used in the rendering of the primary medical service to patients.
This is true irrespective of whether or not such tangible items are billed separately to their patients.
Hospitals, infirmaries, sanitariums, nursing homes and like institutions are deemed to be the users or
consumers of such tangible personal property and the instate sellers of these items are required to
report and remit the tax due on the sale of such property to the hospitals, infirmaries, sanitariums,
nursing homes, and like institutions or in the case of out-of-state purchases, use tax shall be reported
and remitted by the purchaser.
Where meals and beverages are furnished by hospitals, infirmaries, sanitariums, nursing homes and
like institutions to the patient as a part of their primary medical service, with or without a separate
charge being made, the hospitals, infirmaries, sanitariums, nursing homes and like institutions are
deemed to be the users or consumers of the prepared meal if same is purchased or acquired or the
users or consumers of the unprepared food products if the hospitals, infirmaries, sanitariums, nursing
homes and like institutions purchase such products and prepare the meal.
Sales of meals, foodstuffs or beverages by hospitals, infirmaries, sanitariums, nursing homes or like
institutions to members of the staff, nurses, attendants, employees, visitors or patients, other than those
meals furnished as a part of the primary medical service rendered, are sales at retail and such
institution is required to obtain a retail license for each location and report and remit the sales tax on
the gross proceeds of such sales, to include sales for cash, credit, payroll deduction and sales at special
event functions. This includes sales made in institutions, cafeterias, snack bars, canteens and
commissaries.
Where drugs, prosthetic devices and other supplies are furnished to their patients as a part of the
medical service rendered, such hospitals, infirmaries, sanitariums, nursing homes and like institutions
are deemed to be users or consumers of such drugs, prosthetic devices and other supplies.
Gases such as oxygen, etc., sold to hospitals, medical doctors, dentists, and others for professional use
are subject to the sales or use tax, whichever may apply.