What historical South Carolina use-tax rules did Revenue Ruling 16-6 give individuals, businesses, and nonprofits?

Plain-English summary

South Carolina Revenue Ruling 16-6 was the Department's 2016 general use-tax guide for individuals, businesses, and nonprofit organizations. It is now historical because Revenue Ruling 18-9 expressly superseded it effective July 1, 2017.

RR 16-6 explained that sales tax and use tax complement each other. Sales tax applied to retail sales made in South Carolina. Use tax generally applied to tangible personal property bought at retail for use, storage, or consumption in South Carolina when the full South Carolina tax was not collected, including purchases from Internet sellers, auction sites, mail-order catalogs, and retailers visited in another state or country. Only sales tax or use tax applied to a single transaction, not both.

Under the rates stated in this historical ruling, the use tax equaled the 6% state rate plus applicable local use tax where the property would be used, stored, or consumed. A qualifying purchaser age 85 or older received a one-percentage-point reduction in the state rate for personal-use purchases. The ruling itself cautioned that its rates were those in effect when written.

Credits and property first used elsewhere

If a purchaser held a receipt showing the full South Carolina state and local tax was paid to a licensed out-of-state retailer, the purchaser was no longer liable for use tax on that transaction.

Tax due and paid to another U.S. state could be credited against South Carolina use tax on the same purchase:

• if the other state's tax was lower, the purchaser owed the difference;
• if it was equal or higher, no South Carolina balance was due;
• South Carolina gave no refund for the excess; and
• excess tax on one purchase could not offset tax on another purchase.

The ruling allowed no credit for tax, including value-added tax, paid to a foreign country or a United States territorial possession.

Property first used outside South Carolina escaped use tax only if the purchaser proved that it was bought for bona fide use outside the state, was first actually used outside the state, and that first use was substantial and was the property's primary intended use. The ruling said South Carolina had no fixed safe-harbor period and that each result depended on the facts.

Historical filing guidance

RR 16-6 described these 2016 filing methods:

• individuals could report use tax on Form SC 1040 or Form UT-3;
• an unlicensed business or nonprofit making occasional own-use purchases could use Form UT-3;
• a regular unlicensed purchaser could obtain a purchaser's certificate of registration and use the applicable sales and use tax return;
• licensed retailers reported own-use purchases on their sales and use tax returns; and
• specified vehicles, boats, motors, and airplanes had separate payment or casual-excise-tax procedures.

The ruling also said there was no minimum-dollar use-tax filing threshold. These forms and procedures are historical and were replaced or updated in later guidance.

Important obsolete-era point

RR 16-6 discussed an out-of-state retailer's collection duty using the physical-presence standard in effect when the ruling was written. Because RR 18-9 superseded it and later law changed remote-seller nexus, that discussion should not be used to decide a seller's current collection obligation.

Common questions

Q: Did nonprofit status automatically eliminate use tax?

A: No. The ruling included nonprofits in its purchaser reporting guidance, while recognizing that a specific statutory exemption could still apply.

Q: Did an exemption apply equally to in-state and out-of-state purchases?

A: Yes. The ruling used qualifying prescription medicine as an example of a product exempt from both sales tax and use tax.

Q: Was brief vacation use outside South Carolina enough?

A: Not necessarily. The ruling's camera example remained taxable when brought home because the outside use was not substantial, while furniture used for six months in a Virginia home before a move to South Carolina satisfied the stated test.

Q: Is RR 16-6 current guidance?

A: No. RR 18-9 expressly superseded it effective July 1, 2017.

Citations and references

• Article 13, Chapter 36 of Title 12 (use tax provisions)
• S.C. Code Ann. Sections 12-36-1320 and 12-36-150 (transient construction property)
• S.C. Code Ann. Section 12-54-85(C) (assessment periods discussed in the ruling)
• S.C. Code Ann. Sections 12-36-1710 through 12-36-1740 (casual excise tax)
• SC Revenue Ruling #18-9 (superseding use-tax guidance)

Subject

Use Tax Information for Individuals, Businesses and Nonprofits

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR16-6.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC REVENUE RULING #16-6

SUBJECT:

Use Tax Information for Individuals, Businesses and
Nonprofits
(Use Tax)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

SC Revenue Ruling #08-6

REFERENCES:

Article 13, Chapter 36 of Title 12 (2014; Supp. 2015)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2014)
S. C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public. It is an advisory opinion issued to apply principles of
tax law to a set of facts or general category of taxpayers. It is
the Department’s position until superseded or modified by a
change in statute, regulation, court decision, or another
Department advisory opinion.

Introduction
The following guidance is part of the Department’s continuing effort to provide the
public updated use tax information, including reporting and filing methods. The questions
and answers are written in general terms to explain the application of the use tax. Exhibit
A provides helpful information and tips regarding the use tax. Exhibit B provides
common examples to illustrate the state and local use tax due, if any, from purchases in
another state or the local use tax due from purchases in a South Carolina county that is
not the purchaser’s county of residence, principal place of business, or other place where
the item purchased will be used, stored or consumed.
Note: This advisory opinion is not intended to address all requirements or provisions of
authority that may be applicable to specific factual situations. More specific information,
including information about exemptions, maximum tax items, local sales and use tax
rates, and electronic filing and payment options, can be found on the Department’s
website, www.dor.sc.gov.

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Questions and Answers

1. Q. What is the difference between the sales tax and the use tax?
   A. The sales tax is imposed on all retailers within South Carolina and applies to all
   retail sales of tangible personal property within the state. Retailers making sales
   of tangible personal property in South Carolina are required to remit the sales tax
   to the Department.
   The use tax was enacted in 1951 – the same year the sales tax law was adopted in
   South Carolina. The use tax is a “transaction tax” imposed upon the consumer
   (purchaser) of tangible personal property that is purchased at retail for use,
   storage, or consumption in South Carolina. The use tax applies to purchases from
   out-of-state retailers and includes purchases from retailers made through the
   Internet (retailers’ websites and retailers’ sales on auction sites), through out-ofstate catalog companies, or when visiting another state or country.
   Both the sales tax and the use tax also apply to leases or rentals at retail of
   tangible personal property (e.g., furniture, clothing, office equipment, and
   computers) and various services such as communication services and laundry and
   dry cleaning services. Either the South Carolina sales tax or the South Carolina
   use tax applies to a single transaction, but not both.
2. Q. What is the rate for the use tax?
   A. The tax rate for the use tax is the same as the sales tax. This rate is determined by
   where the tangible personal property will be used, stored or consumed, regardless
   of where the sale actually takes place. Therefore, the tax rate for the use tax is the
   6% 1 state rate plus the applicable local use tax rate for the location where the
   tangible personal property will be used, stored or consumed.
3. Q. Is the use tax rate lower for an individual age 85 or older?
   A. An individual age 85 or older is entitled to a 1% reduction in the state use tax rate
   for items he purchases for his own personal use. The reduction does not apply to
   any local taxes administered by the Department or any taxes collected directly by
   a county or municipality. Accordingly, an individual age 85 or older will
   generally pay a state use tax rate of 5% (not 6%), plus any applicable local taxes.
   In order to obtain the sales tax reduction, the individual must request the reduction
   at the time of sale and must provide the retailer with proof of age. See Code
   Section 12-36-2620.

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The tax rates referenced are the rates in effect at the time this document was written.

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4. Q. Why would an out-of-state retailer charge a purchaser the South Carolina sales tax
or use tax?
A. An out-of-state retailer must obtain a retail license and remit either the South
Carolina sales tax or use tax on retail sales shipped into South Carolina if the outof-state retailer has a physical presence in South Carolina.
Examples of physical presence include, but are not limited to, maintaining
(temporarily or permanently) an office, warehouse, store, other place of business,
or property of any kind in the state or having (temporarily or permanently) an
agent, representative (including delivery personnel and independent contractors
acting on behalf of the retailer), salesman, or employee operating within the state.
An out-of-state retailer that is not required to obtain a retail license and remit the
South Carolina sales or use tax may, however, voluntarily obtain the retail license
and collect and remit the tax to South Carolina.

5. Q. If an out-of-state retailer with a South Carolina retail license charges the
   purchaser for the South Carolina sales or use tax on tangible personal property
   delivered into South Carolina, is the purchaser still liable for the use tax?
   A. If the purchaser has a receipt showing the entire South Carolina (state and local)
   sales tax or use tax has been paid to a licensed out-of-state retailer, then the
   purchaser is no longer liable for the South Carolina use tax.
6. Q. If a South Carolina purchaser buys merchandise through the Internet or a mail
   order catalog from a retailer that has not obtained a South Carolina retail license
   and the retailer, therefore, does not charge the purchaser for the South Carolina
   sales or use tax on tangible personal property delivered into South Carolina, is the
   purchaser liable for the use tax?
   A. Yes.
7. Q. If a South Carolina purchaser travels to another state and purchases tangible
   personal property from a retailer in the other state for use, storage or consumption
   in South Carolina, does the South Carolina purchaser still owe the South Carolina
   use tax on the purchase if the other state’s sales tax was paid to the retailer at the
   time of purchase?
   A. If the state and local sales or use tax due and paid in the other state is equal to or
   more than the state and local use tax due in South Carolina, then the purchaser
   does not owe any use tax in South Carolina on the transaction. The purchaser is
   not entitled to a refund if the other state’s tax rate is greater than South Carolina’s
   use tax rate.

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For example, if a South Carolina purchaser paid $21 in state and local sales tax to
the other state and the total state and local use tax due in South Carolina was $18,
then the South Carolina purchaser would be allowed a credit for the $21 and no
use tax would be due in South Carolina. The purchaser would not be entitled to a
$3 refund ($21 sales tax paid in the other state less the $18 use tax due in South
Carolina).
If the state and local sales or use tax due and paid in the other state is less than the
amount of state and local use tax due in South Carolina, then the purchaser is
liable for the use tax and must pay the difference to the Department. South
Carolina allows a credit against the state and local tax due in South Carolina for
the amount of state and local sales or use tax due and paid to the other state on the
purchase of tangible personal property.
For example, if a South Carolina purchaser paid $15 in state and local sales tax to
the other state and the total state and local use tax due in South Carolina was $18,
then the South Carolina purchaser would be allowed a credit for the $15 tax paid
and would owe South Carolina use tax of $3.
Note: Each transaction stands on its own. In other words, an “excess” paid to
another state on one purchase transaction, as shown in the above example, cannot
be used to offset any South Carolina use tax that may be due on another purchase
transaction.

8. Q. If a South Carolina purchaser travels to another country and purchases tangible
   personal property from a retailer in that country for use, storage or consumption in
   South Carolina, does the South Carolina purchaser still owe the South Carolina
   use tax on the purchase if the other country’s tax was paid to the retailer at the
   time of purchase?
   A. Yes. A credit is not allowed against the South Carolina use tax for any sales or
   use tax (or any other type of tax, such as a value added tax) due and paid in
   another country or in a territorial possession of the United States.
9. Q. If a person purchases tangible personal property outside of South Carolina and
   first uses it outside of South Carolina, is that person liable for the South Carolina
   use tax if the tangible personal property is later brought into South Carolina?
   A. The South Carolina use tax is due unless the person bringing the tangible personal
   property into South Carolina can establish the following:
   (1) The property, when purchased, was intended for a bona fide use outside of
   South Carolina;
   (2) The first actual use of the property was outside of South Carolina; and

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(3) The first actual use of the property was substantial and constituted the primary
use for which the property was purchased.
The determination of whether the South Carolina use tax is due depends on the
individual facts and circumstances of each transaction. The purchaser is
responsible for proving that the above listed requirements have been met.
The following examples illustrate the application of the use tax requirements
discussed above when bringing tangible personal property into South Carolina.
Example 1: A South Carolina resident vacationing in North Carolina purchases a
camera and uses it on the vacation. The South Carolina use tax would be due
when the camera is brought back to South Carolina since the camera was not
substantially used outside of South Carolina. However, a credit is allowed against
the use tax for any sales or use tax due and paid in another state (but not in
another country or a U.S. territory) on the camera. See Questions 7 and 8.
Example 2: A Virginia resident purchases new furniture for his home in Virginia.
Six months 2 later, he is transferred to South Carolina. The South Carolina use tax
is not due since the furniture was purchased for use in Virginia, it was first used in
Virginia, and that first use in Virginia was substantial and constituted the primary
use for which the furniture was purchased.
Note: See Code Sections 12-36-1320 and 12-36-150 for the use tax requirements
and tax computation when transient construction property is brought into South
Carolina for use or storage.

10. Q. If a sale by a South Carolina retailer is exempt from the South Carolina sales tax,
    is the purchase of the same product from an out-of-state retailer exempt from the
    South Carolina use tax?
    A. Yes. For example, prescription medicine purchased from a South Carolina
    pharmacy upon presentation of the prescription written by the physician is exempt
    from the South Carolina sales tax. The same purchase from an out-of-state mailorder pharmacy is exempt from the South Carolina use tax.
11. Q. When can the use tax be assessed beyond the 3 year normal time limitation
    period?
    A. Generally, use tax is assessed within 36 months from the date the return is filed or
    due to be filed, whichever is later. Code Section 12-54-85(C) provides for the
    assessment of tax after the 36 month time limitation period for the fraudulent
    intent to evade tax, failure to file a return, or a 20% understatement of tax. In
    addition, Code Section 12-54-85(C)(5) allows the Department to assess the use
    2

South Carolina does not have an established safe harbor time frame. The South Carolina use tax
determination depends on the specific facts and circumstances of each situation.

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tax resulting from information received from another state or local taxing
authority, a regional or national tax administration organization, or the federal
government, within 12 months of receiving the information, but no later than 72
months after the last day the use tax may be paid without penalty.

12. Q. How and when does an individual report and pay the use tax to the Department?
    A. The South Carolina use tax can be reported and remitted by an individual in the
    following ways:
    (1) Using Form SC 1040, “South Carolina Individual Income Tax Return.” An
    individual may report his South Carolina use tax due on purchases made
    during the year on his individual income tax return when filed.
    (2) Using Form SC UT-3, “Use Tax Payment Return.” An individual may report
    South Carolina use tax due on a specific purchase or the total of all purchases
    made in one month, a calendar quarter, or during the calendar year on a use
    tax return. This method is used by an individual who does not have a South
    Carolina individual income tax filing requirement for the year, such as a
    retiree or student.
    See Question 15 below for information on reporting the use tax on purchases of
    vehicles, boats, or airplanes from a licensed retailer or reporting the casual excise
    tax on purchases of vehicles, motorcycles, boats, boat motors or airplanes from
    individuals.
13. Q. How does a business or nonprofit organization that is not a licensed retailer report
    and pay the use tax to the Department after buying tangible personal property for
    its own use?
    A. A business or nonprofit organization 3 that is not a licensed retailer and that
    purchases tangible personal property for its own use (i.e., not for resale) can
    report the use tax as provided below, based upon the frequency of its out-of-state
    purchases:
    (1) For a purchaser who is not a licensed retailer and who does not regularly
    purchase property for its own use from an out-of-state retailer: Use Form UT3, “Use Tax Payment Return” to report and remit South Carolina use tax due
    on a specific purchase for its own use or the total of all purchases for its own
    use made in one month, a calendar quarter, or during the calendar year.

3

Certain nonprofit organizations that sell tangible personal property are not required to be licensed as
retailers since their sales are exempt from the sales tax under Code Section 12-36-2120(41).

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(2) For a purchaser who is not a licensed retailer and who regularly purchases
property for its own use from an out-of-state retailer: (a) Obtain a purchaser’s
certificate of registration; and (b) file Form ST-3, “State Sales and Use Tax
Return” (or other applicable sales tax return) 4 and, if applicable, a local tax
addendum ST-389, “Schedule for Local Taxes,” to report and remit the use
tax. Out-of-state purchases subject to use tax are reported on the “Worksheet”
of the applicable South Carolina sales and use tax return.
Note: A purchaser’s certificate of registration for remitting use tax on a
periodic basis may be obtained free of charge by completing Form SCDOR111, “South Carolina Department of Revenue Tax Registration Application.”

14. Q. How does a business or nonprofit organization that is a licensed retailer report
    and pay the use tax to the Department after buying tangible personal property for
    its own use?
    A. A business or nonprofit organization that is a licensed retailer and that purchases
    tangible personal property for its own use (i.e., not for resale) should report and
    remit the use tax on its appropriate sales and use tax return, usually Form ST-3,
    “State Sales and Use Tax Return;” and, if applicable, a local tax addendum ST389, “Schedule for Local Taxes.” 5 Out-of-state purchases subject to use tax are
    reported on the “Worksheet” of the return.
15. Q. How does a purchaser report and remit the use tax on a vehicle, motorcycle, boat,
    motor, or airplane purchased from an out-of-state retailer?
    A. The use tax due on a vehicle, motorcycle, boat, motor, or airplane purchased from
    an out-of-state retailer can be reported and paid as follows:
    (1) File Form ST-236, “Casual or Use Excise Tax Return,” with the Department;
    (2) Remit the use tax to the Department of Motor Vehicles at the time the vehicle
    or motorcycle is registered, titled, or licensed; or
    (3) Remit the use tax to the Department of Natural Resources at the time the boat
    or boat motor is registered, titled, or licensed.
    Note: Motor vehicles, motorcycles, boats, motors and airplanes purchased from
    a non-retailer are subject to a “casual excise tax” (rather than the use tax) at the
    time the motor vehicle, motorcycle, boat, motor, or airplane is registered, titled, or
    licensed. A taxpayer also can report and remit this tax by filing Form ST-236 with
    the Department. For information on the “casual excise tax,” see Code Sections 1236-1710 through 12-36-1740.
    4

Other sales and use tax returns used by specific types of taxpayers include Forms ST-388, “State Sales,
Use, and Accommodations Tax Return”; ST-403, “State Sales, Use, and Aviation Fuel Tax Return”; and
ST-455, “State Sales, Use, Maximum Tax and Special Filers Tax Return.”
5
See footnote 3.

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16. Q. Can the use tax be filed and paid electronically?
A. Yes. For specific online filing and payment information, see the Department’s
website, www.dor.sc.gov.

17. Q. What is the Department’s contact information for additional use tax questions?
    A. Questions about the use tax should be directed to the Department at (803) 8985000 or by e-mail at [email protected].

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Rick Reames III
Rick Reames III, Director
July 6
, 2016
Columbia, South Carolina

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Exhibit A – General Information and Tips about the Use Tax

1. There is no minimum dollar use tax filing requirement like there is for individual
   income tax. An individual who is not required to file an individual income tax return
   may have to file a use tax return for the current tax year.
2. An individual is not subject to double taxation on a purchase. The individual may
   have to pay either the South Carolina state sales tax (plus applicable local taxes) or
   state use tax (plus applicable local taxes) on a purchase, but not both on the same
   purchase.
3. An individual age 85 or older purchasing property for his own personal use (e.g.,
   clothing, furniture, appliances, etc.) that is subject to South Carolina use tax pays a
   lower use tax rate than an individual under 85. The use tax rate for an individual 85 or
   older is 5% (as opposed to 6%) plus applicable local taxes. To receive the sales tax
   reduction, the individual must request it at the time of purchase and provide the
   retailer with proof of age.
4. The use tax does not apply to an individual purchasing stocks, bonds, or mortgages;
   the use tax applies only to tangible personal property and limited services (e.g.,
   charges to access an out-of-state website, laundry and dry cleaning services, and
   communication services).
5. Items purchased for use outside South Carolina and substantially used outside of
   South Carolina are not subject to South Carolina use tax. For example, a nonresident
   individual relocating to South Carolina does not owe South Carolina use tax on
   property substantially used in the former state or residence, such as household items,
   computers, and furniture; however, he would owe South Carolina use tax on any of
   these items if they were not first substantially used outside of South Carolina. SC
   Regulation 117-320.1. Also see Code Section 12-36-1320 for transient construction
   property use tax provisions.
6. An individual cannot reduce any South Carolina use tax due by sales tax paid in
   another country or territorial possession of the United States. See Code Section 1236-1310(C) and SC Revenue Ruling #06-4.
7. An individual paying state and local sales or use tax in another state that is higher
   than the state and local sales and use tax rate in South Carolina is not entitled to a
   refund of the difference in the tax rates.
8. It is important to maintain records of purchases for 6 years in some instances.
   Assessments of use tax from information received from other state taxing authorities,
   tax administration organizations, or the federal government may be assessed at any
   time within 12 months after the Department receives the information, but no later
   than 72 months after the last day the use tax may be paid without penalty. For
   example, this provision extends the time limitations for the Department to assess use
   tax due on items reported by another state, regional compacts, or U.S. Customs and
   Border Protection. Code Section 12-54-85(C)(5).
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Exhibit B – Examples of Use Tax Due from Out-of-State or In-State Purchases
A. Out-of-State Purchases - The following examples illustrate the South Carolina use
tax due (State and local) from the individual, if any, from his purchase of a taxable item
in another state.
Purchaser

Individual 1

Individual 2

Individual 3

Tax Rate Paid
in Another
State by
Individual on
Purchase Made
Outside of
South Carolina
$0 State and
Local Taxes in
Other State
4% State

• $0 Local Tax
  = 4% Rate in
  Other State
  4% State
• 4.75% Local
  = 8.75% Rate in
  Other State

Tax Rate in South
Carolina
(State Rate and
Local Rate in South
Carolina County
Where Purchaser
Lives)
6% State

• 1% Local County
  = 7% SC Rate
  6% State
• 1% Local County
  = 7% SC Rate

Amount of
Offset or
“Credit” for
Sales/Use Taxes
Paid in
Other State by
the Individual
Not Applicable

6% State

• 0% Local County
  = 6% SC Rate

8.75%

4%

Use Tax
(State and
Local) Due in
South
Carolina by
the
Individual
7% of
Purchase
Price
3% of
Purchase
Price
$0 - No Tax
Due and No
Tax Refunded

Individual 1 – This example illustrates a purchase from a state that has no sales tax or did
not collect any sales tax on the taxable transaction. Assume the purchase price was $100.
The South Carolina resident individual must remit $7 ($100 x 7%) use tax to the
Department.
Individual 2 – This example illustrates a taxable purchase from a state that has a lower
tax rate than South Carolina. Assume the purchase price was $1,000 and the individual
paid 4% sales tax ($40) at the time of purchase. The total South Carolina use tax due
based on his county of residence is $70 ($1,000 x 7%). The individual must remit $30 use
tax ($70 total tax - $40 paid in other state) to the Department.
Comment: If the purchase had taken place in a foreign country, the individual would
owe South Carolina $70 use tax since a “credit” for sales or use tax paid in a foreign
country is not allowed under South Carolina law.
Individual 3 – This example illustrates a taxable purchase from a state that has a higher
tax rate than South Carolina. Assume the purchase price is $10,000 and the individual
owed and paid state and local sales tax of $875 ($10,000 x 8.75%) at the time of
purchase. Although the use tax due based on his county of residence in South Carolina is
only $600 ($10,000 x 6%), he does not get a refund of the $275 tax overpayment, nor can
he use it to offset any use tax that may be due on another out-of-state transaction subject
to use tax.
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B. In-State Purchases - The following examples illustrate the South Carolina local use
tax due from an individual from his purchase of a taxable item in a South Carolina county
that is not his county of residence. The South Carolina state tax rate is 6% and is paid.
Purchaser

Individual 1
Individual 2

Local Tax Rate in
the SC County of
Purchase
Local – 0%
Local – 1%

Local Tax Rate in
the Purchaser’s SC
County of Residence
Local – 2%
Local – 0%

Local Use Tax Due by
the Purchaser
2% of Purchase Price
$0 - No Local Tax Due
and No Tax Refunded

Individual 1 – This example illustrates a purchase in a South Carolina county that has no
local sales tax that is not the purchaser’s county of residence. The purchaser intends to
use the item in his county of residence, which imposes local use taxes of 2%. Assume the
purchase price was $1,000 and the 6% State tax rate was paid but $0 local tax was
collected by the retailer. The individual must remit $20 ($1,000 x 2%) local use tax to the
Department.
Individual 2 – This example illustrates a taxable purchase in a South Carolina county that
has a higher local tax rate than that imposed by the purchaser’s county of residence.
Assume the purchase price is $10,000 and the individual paid $700 ($10,000 x 7%; i.e.,
the 6% State use tax rate + the 1% local tax rate) at the time of purchase. Although the
county in which the purchaser resides and where the item will be consumed does not
have a local tax, the purchaser does not get a refund of the $100 local tax paid, nor can he
use the $100 to offset any state or local use tax that may be due on another transaction
subject to use tax.

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