S.C. Code Regs. 117-317.2 — Retailers

Sales of tangible personal property physically or constructively repossessed by a retailer through the
mechanics of claim and delivery proceedings, by peaceful surrender or otherwise are subject to the
sales tax when resold either for cash or on new conditional sales contracts.
On assumption agreements the amount to be included in gross proceeds of sales is the balance in
default on conditional sales contracts held by retailers and any down-payment made by the person
assuming the former purchaser's obligation in exchange for the repossessed property. This is
irrespective of the mechanics used by such retailers in transferring title to repossessed property to new
owners.
Conversely, no tax is due by a retailer when under the terms of recourse contracts with finance
companies and other lending agencies it becomes necessary for the retailer to find a buyer to assume
the balance owed a lender because of default on the part of the borrower.