B-140459, OCT. 6, 1959

B-140459: Oct 6, 1959

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THE SALE OF ELECTRICITY IN SOUTH CAROLINA WAS EXEMPT FROM THE TAX. EFFECTIVE ON THAT DATE SALES OF ELECTRICITY WERE MADE SUBJECT TO THE TAX EXCEPT FOR "THE GROSS PROCEEDS OF THE SALE OF ELECTRICITY FOR USE IN MANUFACTURING TANGIBLE PERSONAL PROPERTY FOR SALE.'. THE INCIDENCE OF THE SOUTH CAROLINA SALES TAX WAS FOUND TO BE ON THE VENDOR. IT WAS HELD. THAT THE UNITED STATES WAS NOT ENTITLED AS A MATTER OF RIGHT TO MAKE PURCHASES ON A TAX FREE BASIS. IN ACCORDANCE WITH THAT DECISION AND SINCE THE ELECTRICITY FOR WHICH PAYMENT IS REQUESTED OBVIOUSLY WAS NOT USED FOR "MANUFACTURING TANGIBLE PERSONAL PROPERTY FOR SALE.

B-140459, OCT. 6, 1959

TO MR. WILLIAM AMKRAUT, AUTHORIZED CERTIFYING OFFICER, DEPARTMENT OF COMMERCE:

BY LETTER OF AUGUST 6, 1956, YOU ASKED IF YOU PROPERLY MIGHT CERTIFY FOR PAYMENT TWO INVOICES OF THE SOUTH CAROLINA ELECTRIC AND GAS COMPANY IN THE AMOUNTS OF $93.23 AND $119.55 WHICH INCLUDE A 3 PERCENT SALES TAX OF $2.71 AND $3.48, RESPECTIVELY, LEVIED BY THE STATE OF SOUTH CAROLINA.

PRIOR TO JULY 1, 1959, THE SALE OF ELECTRICITY IN SOUTH CAROLINA WAS EXEMPT FROM THE TAX, HOWEVER, EFFECTIVE ON THAT DATE SALES OF ELECTRICITY WERE MADE SUBJECT TO THE TAX EXCEPT FOR "THE GROSS PROCEEDS OF THE SALE OF ELECTRICITY FOR USE IN MANUFACTURING TANGIBLE PERSONAL PROPERTY FOR SALE.' SEE SECTION 65-1404 OF THE CODE OF LAWS OF SOUTH CAROLINA.

IN OUR DECISION OF AUGUST 7, 1956, B-128720, COPY ENCLOSED, THE INCIDENCE OF THE SOUTH CAROLINA SALES TAX WAS FOUND TO BE ON THE VENDOR, AND IT WAS HELD, IN EFFECT, THAT THE UNITED STATES WAS NOT ENTITLED AS A MATTER OF RIGHT TO MAKE PURCHASES ON A TAX FREE BASIS.

IN ACCORDANCE WITH THAT DECISION AND SINCE THE ELECTRICITY FOR WHICH PAYMENT IS REQUESTED OBVIOUSLY WAS NOT USED FOR "MANUFACTURING TANGIBLE PERSONAL PROPERTY FOR SALE," THE INVOICES, IF OTHERWISE PROPER, MAY BE CERTIFIED FOR PAYMENT IN THE FULL AMOUNT.