777 S.E.2d 842
S.C. Ct. App.2015Background
- Boggero owns Boggero’s Portable Toilets in Greenwood; no licenses or taxes had been paid or collected prior to audit.
- Department audited Jan 1, 2009, to Dec 31, 2011; assessed sales tax on gross proceeds, with interest and penalties.
- ALC upheld Department; Boggero challenged, arguing true object is a service (removal of waste).
- This appeal focuses on whether gross proceeds were subject to sales tax under the true object test.
- Court reviews under substantial evidence standard; finds issue is primarily a fact question.
- Evidence includes website, service agreements, and invoices showing use of toilets and optional fees, suggesting rental/personal property use.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether true object test governs taxability | Boggero asserts true object is a service. | Department/ALC applied true object test to classify as rental. | Issue is a fact question; substantial evidence supports true object as rental. |
| Whether substantial evidence supports classification as rental of tangible property | Transactions primarily for service of waste removal. | Transactions primarily for use/rental of portable toilets and property. | Yes; substantial evidence supports rental/lease characterization. |
Key Cases Cited
- Centex Int’l, Inc. v. S.C. Dep’t of Revenue, 406 S.C. 132 (South Carolina 2013) (APA review; standard of review for ALC decisions)
- Bursey v. S.C. Dep’t of Health & Envtl. Control, 369 S.C. 176 (South Carolina 2006) (mixed questions of law and fact; statutory interpretation vs. application)
- PalmettoNet, Inc. v. S.C. Tax Comm’r, 818 S.C. 102 (South Carolina 1995) (deference to trial court on factual findings in tax matters)
- Sonoco Products Co. v. S.C. Dep’t of Revenue, 378 S.C. 385 (South Carolina 2008) (statutory interpretation and factual application framework)
- Lark v. Bi-Lo, Inc., 276 S.C. 130 (South Carolina 1981) (definition of substantial evidence in agency review)
- CFRE, LLC v. Greenville Cnty. Assessor, 395 S.C. 67 (South Carolina 2011) (statutory interpretation and deference in property tax context)