S.C. Code Regs. 117-311.1 — Railroad Companies, Sales to

Some railroads maintain storehouses, in South Carolina for the temporary storage of materials and
supplies. Some of these materials and supplies are for use in South Carolina and some are for use in
other states. Frequently, when materials are shipped to such storehouses, the railroad does not know
what materials are for use in South Carolina, and what are for use in other states. Because of the
impracticability of determining what proportion of such materials and supplies is subject to the tax at
the time of their purchase, and because of the inequity of imposing the tax on the total purchase of
such materials and supplies, the railroad may apply for a certificate under the provisions of Section
12-36-2510, which allows such railroad to purchase materials and supplies at wholesale, and to remit
the use tax on the materials and supplies withdrawn for use or consumption within this state.