South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 11 - SALES AND USE TAX REGULATIONS › Section 117-328 - Radio and TV Stations

Current through Register Vol. 48, No. 6, June 28, 2024
Code Section
				12-36-2120(26)
				 exempts from the tax the sale of "all
				supplies, technical equipment, machinery and electricity sold to radio and
				television stations, and cable television systems, for use in producing,
				broadcasting or distributing programs. For the purpose of this exemption,
				radio, and television stations, and cable television systems are deemed to be
				manufacturers."
In light of the last sentence hereinabove, another statutory
				exemption (Code Section
				12-36-2120(17)
				) is available. It reads that there is exempted from the measure of the tax
				levied, assessed or payable, "The gross proceeds of the sale of ... machines
				used in ... compounding, processing and manufacturing of tangible personal
				property; provided that the term 'machines,' as used in this article, shall
				include the parts of such machines, attachments and replacements therefor which
				are used, or manufactured for use, on or in the operation of such machines and
				which are necessary to the operation of such machines and are customarily so
				used; but this exemption shall not include automobiles or trucks ..."
An AM radio station is defined as a broadcasting station
				licensed by the Federal Communications Commission for the transmission of
				radiotelephone emissions primarily intended to be received by the general
				public and operated on a channel in the band 535-1605 kc/s. An FM radio
				station, including non-commercial educational radio stations, would come within
				the same definition except that it is operated on a channel in the band
				88.1-107.9 mc/s. A television broadcasting station would also come within the
				same definition except that it is licensed to transmit both visual and aural
				radiotelephone emissions and is to be operated in the 54-890 mc/s
				frequency.
Sales of electricity to radio and television stations for use
				directly in producing programs and in broadcasting, and to provide necessary
				lighting therefor, are exempted from the sales and/or use tax. Also,
				electricity to operate air conditioning machinery necessary to the operation of
				exempt technical equipment and machinery and for live telecast is exempt from
				the tax.
Sales of electricity for any other purpose are subject to the
				tax, such as, but not limited to, electricity used in administrative offices,
				supervisory offices, parking lots, storage warehouses, maintenance shops,
				safety control, comfort air conditioning, elevators, housekeeping equipment and
				machinery, cafeterias, canteens, first aid rooms, supply rooms, water coolers,
				drink boxes and unit heaters.
The exemption applies to all purchases or rentals of supplies
				for use directly in the preparation of programs and in broadcasting, to include
				flash bulbs, paper supplies, stage properties when customarily re-used, such as
				stock articles of furniture and equipment, props (including materials from
				which props are fabricated), film, recording tape, artists supplies, chemicals
				for use in developing films, syndicated and feature films, phonograph records,
				transcriptions, script services, sheet music, syndicated tape and transcribed
				programs.
The term "technical equipment and machinery" is defined as
				specialized equipment and machinery peculiar to the industry when purchased for
				use directly in preparing programs or broadcasting. The term shall likewise
				include replacement parts and attachments therefor, and power wiring or cable
				connecting exempt technical equipment and machinery when such wiring is not
				built into and a part of a building or structure.
Examples of exempt technical equipment and machinery used in
				programming are timers, splicers, viewers, sound readers, projectors, screens,
				editing tables and lighting boards, darkroom equipment and machinery used for
				developing film for use in preparing programs, and cameras, recorders and
				mobile equipment and machinery (not including automobiles and trucks) used by
				station employees in newsgathering and in transmission.
Examples of studio technical equipment and machinery are: For
				radio stations, turntables, microphones, audio consoles, tape recorders,
				headphones and speech input equipment.
For television stations, all of the foregoing, and in addition,
				video switching equipment, cameras, film chains, slide projectors, film
				projectors, studio lighting and studio dimmer or light control boards.
Transmission equipment consists of AM, FM, and TV transmitters
				complete, to include coaxial cables or transmission lines connecting antennas
				to transmitters.
Antenna equipment consists of the antenna proper, not including
				towers and lights. (Note, however, when the tower is the antenna, as in AM
				radio, it is deemed to be exempt technical equipment.)
Purchases of broadcast testing machinery used primarily for the
				purpose of maintaining audio or visual transmission quality are not subject to
				the tax.
Machines, including typewriters, purchased for use primarily in
				producing program logs are exempted from the tax.
Machinery purchased for use in fabricating backdrops or props
				is not subject to the tax.
Subject to the tax are purchases of standard or stock articles
				of office equipment, such as desks, chairs, typewriters, billing machines,
				filing cabinets, film storage cabinets and general office supplies used in
				billing customers and for general office use; machinery, equipment and supplies
				(not including, however, tubes and replacement parts) for use in repairing
				technical equipment or machinery; and all purchases of building materials for
				use in constructing a building or structure, to include soundproofing materials
				for studios, radio or television towers (except as indicated hereinabove),
				plumbing fixtures, pipe, wiring, structural foundations (even though for exempt
				equipment or machinery) and air conditioning ductwork. (Note, however, that air
				conditioning machinery necessary to the production of live telecast and for the
				proper functioning of exempt technical equipment and machinery is not subject
				to the tax.)