Taxation – Sales Tax – ‘Motor Vehicle’ Cap – ATVs & UTVs

S.C. Code Ann. § 12-36-2110(A)(1) caps sales tax at $300 for the sale of a “motor vehicle,” but the statute does not define “motor vehicle.” The clear language of § 12-36-2110(A) does not restrict or condition the sales tax exemption to motor vehicles that are used on highways. The dictionary definitions of a motor vehicle are an “automotive vehicle not operated on rails” and a “self-propelled wheeled conveyance, such as a car or truck, that does not run on rails.” All-terrain vehicles (ATVs) and utility task vehicles (UTVs) are motorized, self-propelled, wheeled, and do not run on rails. Further, appellant (SCDOR) directs us to S.C. Code Title 56, which in § 56-1-10(20) defines an ATV as “a motor vehicle measuring fifty inches or less in width, designed to travel on three or more wheels and designed primarily for off-road recreational use . . . .” Therefore, we find the decision of the Administrative Law Court that ATVs and UTVs are motor vehicles under § 12-36-2110(A) is supported by substantial evidence.

We affirm the ALC’s holding that retail sales of ATVs and UTVs are entitled to the partial sales tax exemption found in § 12-36-2110(A).

Jack’s Custom Cycles, Inc. v. South Carolina Department of Revenue (Lawyers Weekly No. 011-015-23, 13 pp.) (Paula Thomas, J.) Appealed from the Administrative Law Court (Ralph King Anderson, Ch. ALJ) Nicole Martin Wooten, Marcus Dawson Antley and Jason Phillip Luther for appellant; John Aaron Ecton and Margaret Weatherly Dukes for respondent. S.C. App.