Purdy v. South Carolina Department of Revenue, 101917 SCALC, 17-ALJ-17-0002-CC

• Date: 19 October 2017
• Docket Number: 17-ALJ-17-0002-CC
• Parties: Keith Purdy, d/b/a A Southern Bartender, Petitioner, v. South Carolina Department of Revenue, Respondent.
• Court: South Carolina Administrative Law Court Decisions

Keith Purdy, d/b/a A Southern Bartender, Petitioner,

v.

South Carolina Department of Revenue, Respondent.

No. 17-ALJ-17-0002-CC

South Carolina Administrative Law Court Decisions

October 19, 2017

ORDER

Deborah Brooks Durden, Judge S.C. Administrative Law Court.

STATEMENT OF THE CASE

This matter is before the South Carolina Administrative Law Court (ALC or Court) pursuant to a Request for Contested Case Hearing filed by Keith Purdy, d/b/a A Southern Bartender (Petitioner or Purdy). Petitioner contests the determination of the South Carolina Department of Revenue (Department or Respondent) that Petitioner is operating a beverage catering business that is subject to sales tax. The parties submitted a consent scheduling motion, proposing cross motions for summary judgment on this issue. The Court signed the consent scheduling order and the parties subsequently filed the motions, responses, and replies. After reviewing the arguments of the parties, I conclude that this matter is not appropriate for resolution by summary judgment, but rather should be resolved by final order after a hearing on the merits.

MATERIAL FACTS

Purdy began a bartending business in 1978. Operating under the name A Southern Bartender, Purdy provides bartending services for catered functions or other events in or around Charleston, South Carolina. Purdy bills for his services through package pricing. Frequently, these packages include purchasing retail alcohol for service at the event. Purdy pays sales tax when he purchases alcohol. Purdy's price structure is based on a per-person structure, ranging from $6.00 to $25.00, with other additional charges, such as gratuity. Purdy is not a licensed retailer of wine, beer, or liquor and has no physical retail location. Rather, he brings the desired supplies, which can include tables, linen, glassware, or alcohol, to the client's event location and sets up a bar and serves drinks, with or without additional bartenders. The Department has determined that the true object of Purdy's business is the sale of beverages and thus is subject to sales tax. Purdy contests this determination and avers that he is providing a service.

ISSUE PRESENTED

Whether the true object of Petitioner's business is a sale subject to sales and use tax under the South Carolina Code.

SUMMARY JUDGMENT STANDARD

Under ALC Rule 68, this Court may apply the South Carolina Rules of Civil Procedure in contested case proceedings where no...