Did South Carolina's $300 sales-tax cap apply to the seller's bumper-pull and gooseneck horse and cattle trailers or semitrailers?

Plain-English summary

South Carolina Private Letter Ruling 89-10 held that the seller's bumper-pull and gooseneck horse and cattle trailers or semitrailers did not qualify for the $300 sales-tax cap in section 12-35-516.

The statute capped tax on a “trailer or semi-trailer pulled by a truck tractor.” The Commission treated “pulled by a truck tractor” as a meaningful limitation and concluded that the cap covered vehicles that could only be pulled by truck tractors.

The seller's vehicles failed that test. Its bumper-pull trailers were not designed for truck-tractor towing. Its gooseneck semitrailers—both ball-mount and fifth-wheel types—could be towed by pickup trucks, and some could also be towed by truck tractors, but none required a truck tractor exclusively.

How the ruling classified the vehicles

Bumper-pull vehicles

These vehicles attached through a trailer hitch and placed none of their weight on the towing vehicle. They met the statutory definition of a trailer, but the taxpayer's information said they were not designed to be pulled by truck tractors.

Gooseneck ball-mount vehicles

These were semitrailers because part of their weight and load rested on the towing vehicle. Their ball attached in a pickup-truck bed. Some could be modified for towing by a truck tractor as well as a pickup truck, so they were not truck-tractor-only vehicles.

Gooseneck fifth-wheel vehicles

These semitrailers attached to a plate on the towing vehicle. They could be towed by either a pickup truck or a truck tractor, so they also failed the ruling's exclusive-use test.

What this means for you

Trailer and vehicle dealers

Under the statute interpreted in 1989, merely calling a vehicle a trailer or semitrailer did not establish eligibility for the $300 cap. The Commission also examined what type of towing vehicle the product was designed to use.

Farmers and livestock businesses

The ruling's result turned on vehicle construction and towing capability, not the fact that the products were marketed as horse or cattle trailers.

Accountants and tax professionals

The Commission relied on the rule that every statutory phrase should be given effect. It reasoned that reading “pulled by a truck tractor” as unnecessary would improperly remove a limitation the Legislature inserted.

Common questions

Q: Did the $300 sales-tax cap apply to the bumper-pull trailers?

A: No. They met the trailer definition but were not designed to be pulled by truck tractors.

Q: Did the cap apply to the gooseneck semitrailers?

A: No. The ball-mount and fifth-wheel models could be pulled by pickup trucks; none could be pulled exclusively by a truck tractor.

Q: Was resting part of the load on the towing vehicle enough to qualify?

A: No. That feature made a vehicle a semitrailer under section 56-3-20, but the ruling separately required it to satisfy the truck-tractor limitation in section 12-35-516.

Q: Can a current trailer dealer rely on PLR 89-10?

A: No. The ruling says it applied only to the requesting taxpayer's facts, had no precedential value, and was not intended for general distribution. It also applied statutes cited as in effect in 1989.

Citations and references

• S.C. Code section 12-35-516 (1987 Supp.) — $300 maximum-tax provision analyzed
• S.C. Code section 56-3-20 (1976) — definitions of trailer, semitrailer, and truck tractor
• S.C. Code section 12-3-170 (1976) and SC Revenue Procedure 87-3 — PLR authority cited
• 73 Am. Jur. 2d, Statutes sections 200, 249, and 250 — statutory-construction principles quoted in the ruling

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/PLR89-10.pdf

Original ruling text

SC PRIVATE LETTER RULING #89-10

TO:

XYZ

SUBJECT:

Sales of Horse/Cattle Trailers and Semitrailers - $300 Cap
(Sales Tax)

REFERENCE:

S.C. Code Ann. Section 12-35-516 (1987 Supp.)
S.C. Code Ann. Section 56-3-20 (1976)

AUTHORITY:

S.C. Code Ann. Section 12-3-170 (1976)
SC Revenue Procedure #87-3

SCOPE:

A Private Letter Ruling is a temporary document issued to a taxpayer, upon
request, and it applies only to the specific facts or circumstances related in the
request. Private Letter Rulings have no precedential value and are not
intended for general distribution.

Question:
Are sales of "bumper-pull" and/or "gooseneck" type vehicles by XYZ entitled to the $300 sales
tax cap, pursuant to Code Section 12-35-516?
Facts:
S.C. Code Section 12-35-516 reads, in part:
In case of the sale or lease of any (1) aircraft, (2) motor vehicle, (3) motorcycle, (4) boat,
(5) trailer or semi-trailer pulled by a truck tractor as each is defined in Section 56-320...the maximum tax levied by this chapter is three hundred dollars...(emphasis added).
S.C. Code Section 56-3-20 provides the following definitions:
"Trailer": Every vehicle with or without motive power, other than a pole trailer, designed
for carrying persons or property and for being drawn by a motor vehicle and so
constructed that no part of its weight rests upon the towing vehicle;

1

"Semitrailer": Every vehicle with or without motive power, other than a pole trailer,
designed for carrying persons or property and for being drawn by a motor vehicle and so
constructed that some part of its weight and that of its load rests upon or is carried by
another vehicle;
"Truck tractor": Every motor vehicle designed and used primarily for drawing other
vehicles and not so constructed as to carry a load other than a part of the weight of the
vehicle and load so drawn;
XYZ sells several different types of vehicles, some of which are "bumper-pull" types, and some
of which are "gooseneck" types. The "bumper-pull" types are attached to a motor vehicle by
means of a trailer hitch. The "gooseneck" types are attached so that the towing vehicle bears a
portion of the towed vehicle's weight.
Discussion:
The issue is whether or not the "bumper-pull" type vehicles and the "gooseneck" type vehicles,
sold by XYZ, constitute "trailers or semi-trailers pulled by a truck tractor".
In reviewing Code Section 12-35-516, it must be determined whether or not trailers or
semitrailers may only be pulled by a truck tractor or whether they may also be pulled by other
vehicles.
To resolve this issue, it is necessary to look to rules of statutory construction.
The following quotes are from 73 Am Jur 2d, Statutes:
Section 200. It is a general rule that the courts, in the interpretation of a statute, may not
take, strike, or read anything out of a statute, or delete, subtract, or omit anything
therefrom. To the contrary, it is a cardinal rule of statutory construction that significance
and effect should, if possible, be accorded to every word, phrase, sentence and part of an
act.
Section 249. In the construction of statutes, the courts start with the assumption that the
legislature intended to enact an effective law, and the legislature is not to be presumed to
have done a vain thing in the enactment of a statute. Hence, it is a general principle that
the courts should, if reasonably possible to do so interpret the statute, or the provision
being construed, so as to give it efficient operation and effect as a whole. An
interpretation should, if possible, be avoided, under which the statute or provision being
construed is defeated, or as otherwise expressed, nullified, destroyed, emasculated,
repealed, explained away, or rendered insignificant, meaningless, inoperative, or
nugatory.
Section 250. In the interpretation of a statute, the legislature will be presumed to have
inserted every part thereof for a purpose. A statute should not be construed in such
manner as to render it partly ineffective or inefficient if another construction will make it

2

effective. Indeed, it is a cardinal rule of statutory construction that significance and effect
should, if possible, without destroying the sense or effect of the law, be accorded every
part of the act, including every section, paragraph, sentence or clause, phrase, and word.
In summary, it is presumed that the legislature inserts words and phrases in statutes for a
purpose; and, the courts may not delete any such words and phrases. Also, in interpreting
statutes, it is necessary to consider all language contained in the statute.
Applying these rules to the question at hand, it must be presumed that the phrase "pulled by a
truck tractor" was inserted by the Legislature for a reason. If the Legislature had not intended to
qualify the conditions for enjoying the cap, then the subject phrase could have simply been
omitted. Therefore, the cap applies to sales of those vehicles which may only be pulled by truck
tractors.
"Bumper-pull" vehicles
The difference between a trailer and a semitrailer, as defined at Code Section 56-3-20, is that a
trailer is "so constructed that no part of its weight rests upon the towing vehicle". A semitrailer,
however, is "so constructed that some part of its weight and that of its load rests upon or is
carried by another vehicle."
The so-called "bumper-pull" type vehicles sold by XYZ are attached to a towing vehicle by
means of a hitch, and no part of their weight rests upon th towing vehicle. Therefore, the
"bumper-pull" type vehicles meet the definition of the term "trailer", and, according to
information provided by the taxpayer, are not designed to be pulled by truck tractors.
"Gooseneck" vehicles
The so-called "gooseneck" type vehicles, sold by XYZ, are "semitrailers". These vehicles are
"so constructed that some part of [their] weight and that of [their] load rests upon or is carried by
another vehicle". However, there are two types of gooseneck semitrailers sold by the taxpayer "ball mounts" and "fifth wheels".
"Ball mount" type semitrailers are usually attached to the towing vehicle by means of a hitch,
similar to the type used to tow "bumper-pull" type trailers. The difference being that the ball is
attached to the bed of a pickup truck, as opposed to the bumper. However, some "ball mount"
types are modified in such a fashion so as to be pulled by a truck tractor, as well as, a pickup
truck.
"Fifth wheel" type semitrailers are attached to a plate, which is in turn attached to the towing
vehicle. These semitrailers may be towed by either a pickup truck or a truck tractor.
In summary, none of the "gooseneck" type vehicles in question may be pulled exclusively by a
truck tractor.

3

Conclusion:
The type of trailers and semitrailers sold by XYZ are not entitled to the $300 sales tax cap,
pursuant to Code Section 12-35-516.

SOUTH CAROLINA TAX COMMISSION

s/S. Hunter Howard Jr.
S. Hunter Howard, Jr., Chairman

s/A. Crawford Clarkson Jr
A. Crawford Clarkson, Jr., Commissioner

s/T. R. McConnell
T. R. McConnell, Commissioner
Columbia, South Carolina
, 1989
May 25

4