reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:06 - Casual or occasional sales

Current through Register Vol. 51, page 10, July 15, 2024
Casual or occasional sales made by an individual who is not engaged in
	 the business of selling at retail are not subject to the tax. Tax applies on
	 sales made in the course of a regularly conducted retail business.
Unless sales are of such a number, volume, or frequency as to indicate
	 evasion of the tax, they are not taxable. A jobber or wholesaler who sells
	 direct to a consumer is a retailer for that portion of the jobber's or
	 wholesaler's business.
Each case must stand upon its own facts, but good faith is required.
	 Taxability is the rule rather than the exception, and the rule of reason
	 applies.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2.
Examples:
(1) A and her family are moving so she decides to sell some household
		items before leaving. She advertises that she is having a garage sale. She
		sells many of the things she advertised. She does not have to collect or remit
		sales tax on these items as she is a casual or occasional seller.
(2) Every summer B grows vegetables which he sells at a roadside
		stand. He must collect and remit sales tax on these sales as he is not a casual
		or occasional seller, but rather holds himself out to the public as a
		retailer.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:07 - Issuance and use of permits restricted

Current through Register Vol. 51, page 10, July 15, 2024
A tax permit cannot be issued to a person solely for the purpose of
	 permitting the person to buy at wholesale or to buy without payment of tax to
	 the seller of property or services taxable under SDCL chapter 10-45, 10-45 D,
	 10-46, 10-52, or 10-52A.
General Authority:
SDCL
		10-45-47.1(1),
		10-45D-13(1),
		10-46E-11(1),
		10-52A-7(1).
Law Implemented:
SDCL
		10-45-2,
		10-45D-12,
		10-46E-8,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:07.01 - Application for tax permit

Current through Register Vol. 51, page 10, July 15, 2024
All applicants for a tax permit shall include on the application form,
	 in addition to the requirements set forth in SDCL
	 10-45-24, the following:
(1) The applicant's social security number,
  if the individual is the sole owner, and the applicant's federal identification
  number if the internal revenue service requires a federal identification
  number;
(2) The applicant's home
  and business telephone number;
(3)
  The type of business, with a brief description of that business;
(4) The type of license requested;
(5) The beginning date of business;
(6) Whether it is a new business;
(7) An estimated monthly taxable gross in
  this state;
(8) The type of
  accounting method used;
(9) The
  type of ownership;
(10) If it is a
  corporation, the date of incorporation;
(11) If not a South Dakota corporation, the
  date registered with the secretary of state;
(12) The names, addresses, and social
  security numbers of all principal officers if the business is a corporation or
  of all principal partners if the business is a partnership; and
(13) Other information required by the
  secretary to identify the business and the activities of the
  business.
General Authority:
SDCL
		10-45-47.1(1),
		10-45D-13(1),
		10-46E-11(1),
		10-52A-7(1).
Law Implemented:
SDCL
		10-45-24,
		10-45D-12,
		10-46E-8,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:07.02 - Requirements for statewide tax permit

Current through Register Vol. 51, page 10, July 15, 2024
The department may only issue a statewide tax permit to businesses with
	 identical ownership, the same federal identification number, the same Standard
	 Industrial Classification number, and the same license type. The department may
	 issue a statewide tax permit to businesses with different Standard Industrial
	 Classification numbers if all the other requirements are met and the products
	 or services being sold are the same even though the Standard Industrial
	 Classification numbers are different. Any business requesting a statewide tax
	 permit must maintain records that clearly show gross receipts, deductions, and
	 municipal and tourism sales for each location reported under the statewide
	 permit. Such records shall be stored and available at one
	 location.
General Authority:
SDCL
		10-45-47.1(1)(4),
		10-45D-13(1),
		10-46E-11(1),
		10-52A-7(1).
Law Implemented:
SDCL
		10-45-24,
		10-45D-12,
		10-46E-8,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:07.03 - Application for tax permit - Streamline registration

Current through Register Vol. 51, page 10, July 15, 2024
Each applicant for a tax permit through the streamline registration
	 system shall provide the following information:
(1) The applicant's federal identification
  number if the internal revenue service requires a federal identification number
  or the applicant's social security number;
(2) The applicant's legal name;
(3) The applicant's business name (if
  different than legal name);
(4) The
  applicant's business address;
(5)
  The applicant's mailing address (if different than business address);
(6) The applicant's state of incorporation or
  organization;
(7) Contact person
  and contact person's phone number;
(8) NAICS Code for primary source of
  business;
(9) Technology model the
  applicant will use for reporting and paying tax; and
(10) Information for each state that the
  applicant is eligible to volunteer for streamline sales tax, and whether the
  applicant is already registered in that state, or needs to register in that
  state.
Applicant will be required to furnish additional information per SDCL
	 10-45-24 and §
										64:06:01:07.01 if they are
	 required to register in this state.
General Authority:
SDCL
		10-45-47.1(1).
Law Implemented:
SDCL
		10-45-24.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:08 - Exemption certificates

Current through Register Vol. 51, page 10, July 15, 2024
Receipts from the sale of tangible personal property or any product
	 transferred electronically are presumed to be exempt if the buyer has furnished
	 an exemption certificate. A new exemption certificate is not needed for each
	 sale.
Electricians, plumbers, and other similar contractors who maintain a
	 retail store, in addition to contracting out their services, may purchase all
	 electrical, plumbing, and related merchandise from jobbers, wholesalers, or
	 manufacturers for resale and give an exemption certificate. All items removed
	 from inventory and used in the performance of a contract are subject to use
	 tax. Use tax on materials used in contract work must be paid on the cost of
	 such materials.
Electricians, plumbers, and other similar contractors who are not
	 retailers may not hold a tax permit, but may take credit on their excise tax
	 return for amounts paid to suppliers as sales tax if the item purchased is
	 later resold rather than used. Sales must then be reported and tax paid on the
	 amount of the sale.
In order to purchase ingredient or component parts exempt from tax,
	 processors and manufacturers must be licensed and must furnish their suppliers
	 with exemption certificates.
General Authority:
SDCL
		10-45-47.1(4),
		10-46-35.1(4),
		10-46A-19(4),
		10-46B-18(4).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-45-61,
		10-46-2,
		10-46-2.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:08.01 - Exemption certificates - Forms accepted

Current through Register Vol. 51, page 10, July 15, 2024
The only acceptable forms for exemption certificates are the
	 department's exemption certificate form, a substitute for this form that has
	 the prior approval of the department, or the Multistate Tax Commission uniform
	 sales and use tax certificate form, or the streamlined sales tax agreement
	 certificate of exemption.
General Authority:
SDCL
		10-45-47.1(4).
Law Implemented:
SDCL
		10-45-1(10),
		10-45-2,
		10-45-61.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:08.02 - Services as components of other services

Current through Register Vol. 51, page 10, July 15, 2024
Services which are an integral, inseparable component of services
	 involving the manufacture, fabrication, processing, or manipulation of tangible
	 personal property or any product transferred electronically are considered to
	 be for resale. Receipts from the sale of a service for resale by the purchaser
	 are not subject to sales tax provided the purchaser furnishes an exemption
	 certificate. In order for the transaction to be a sale for resale, the
	 following conditions must be present:
(1) The manufacturer, fabricator, processor,
  or manipulator does not use the service in any manner other than resale;
  and
(2) The service is delivered or
  resold to the ultimate customer without any alteration or change.
General Authority:
SDCL
		10-45-47.1(4),
		10-46-35.1(4).
Law Implemented:
SDCL
		10-45-1(10),
		10-45-2.4,
		10-45-4,
		10-45-4.1,
		10-45-20,
		10-46-2.1,
		10-46-2.2.
Declaratory Rulings:
The commissions and buyer's fees received by an auctioneer as a
		result of its auction services in the sale of tangible property for resale are
		gross receipts subject to the retail sales and service tax imposed by SDCL
		10-45-4. The services are used and
		consumed by the sellers and buyers and are not resold to another party.
		Secretary of Revenue Declaratory Ruling 91-1, May 6, 1991.
The engineering services provided by a technical services company to
		a company that builds and repairs building components are subject to tax
		pursuant to SDCL
		10-45-4. They are not an integral,
		inseparable component of services involving the manufacture, fabrication,
		processing, or manipulation of tangible personal property. Secretary of Revenue
		Declaratory Ruling 92-1, September 11, 1992.
Examples:
(1) ABC Manufacturing builds garden tractors. It does not have the
		capacity to paint the finished product, and hires Rainbow Paint Company to do
		so. The services of Rainbow are an integral part of the manufacturing process,
		and may be purchased by ABC for resale provided ABC furnishes an exemption
		certificate to Rainbow.
(2) Ace Mechanic contracts to repair a wrecked automobile. Ace
		repairs the damage except for the radiator which is taken to Sam's Radiator
		Service. Sam fixes the radiator and is paid by Ace. Ace then bills the owner of
		the vehicle for the repair work, which charge includes the sum paid to Sam. The
		amount paid by Ace to Sam would not bear tax if Ace gave Sam an exemption
		certificate. The entire amount paid by the owner to Ace is subject to
		tax.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:08.03 - Sale of service for resale

Current through Register Vol. 51, page 10, July 15, 2024
Services which are purchased by a service provider and delivered to a
	 current customer in conjunction with the services contracted to be provided to
	 the customer are considered to be for resale. Receipts from the sale of a
	 service for resale by the purchaser are not subject to sales tax if the
	 purchaser furnishes an exemption certificate.
In order for the transaction to be a sale for resale, the following
	 conditions must be present:
(1) The
  service is purchased for or on behalf of a current customer;
(2) The purchaser of the service does not use
  the service in any manner; and
(3)
  The service is delivered or resold to the customer without any alteration or
  change.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-1(10),
		10-45-4,
		10-45-4.1,
		10-45-20,
		10-46-2.1
Example:
John Customer purchases a subscription to a movie channel from
		Fantastic Cable Company. Fantastic purchases the right to view the movie
		channel from Hollywood Movies, a cable movie channel subscription service. The
		services provided by Hollywood Movies are purchased for resale as Fantastic
		does not use the service in any
		way.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:08.04 - Services performed on property held for sale

Current through Register Vol. 51, page 10, July 15, 2024
The repair of tangible personal property held for sale or the
	 installment of replacement parts in tangible personal property that is held for
	 sale are considered to be services for resale. Receipts from the sale of
	 services for resale are not subject to sales tax if the purchaser furnishes an
	 exemption certificate.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-1(10),
		10-45-4,
		10-45-4.1,
		10-45-20,
		10-46-2.1
Examples:
(1) Al's Used Cars, Inc., hires Ace Mechanic to install a rebuilt
		carburetor in one of its cars which is to be sold. Ace's fees are not subject
		to tax if Al gives Ace an exemption certificate.
(2) Al also has Ace repair a lawnmower which Al uses to mow his car
		lot. Ace's fees are subject to tax even though Al may eventually sell the
		lawnmower to a third party.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:09 - Conditional sales contracts - Assigned and repossessed merchandise

Current through Register Vol. 51, page 10, July 15, 2024
If conditional sales contracts are assigned or negotiated by the
	 retailer to a finance company, sales tax must be paid by the retailer on the
	 full amount of the purchase price under the contract at the time the retailer
	 makes the required tax remittance for the reporting period in which the sale
	 was made.
If repossession by the finance company becomes necessary, the retailer
	 may deduct as a bad debt, as provided in SDCL
	 10-45-30, that portion of the tax
	 previously paid, provided that in liquidation of the repossessed merchandise
	 the retailer has actually suffered a loss and the gross receipts prove to be
	 less than anticipated under the original contract price.
If the merchandise repossessed is later sold by the retailer to a
	 consumer, the tax applies to the second sale the same as it did to the first
	 sale.
General Authority:
SDCL
		10-45-47.1(2).
Law Implemented:
SDCL
		10-45-1(10),
		10-45-2,
		10-45-30.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:09.01 - Sale and leaseback contracts

Current through Register Vol. 51, page 10, July 15, 2024
If a company enters into a contract to purchase equipment from another
	 company with the intention to resell it to a third company from whom the first
	 company will lease it back, the first transaction is presumed to be for resale
	 if the company who purchased the equipment can show its intention. The
	 subsequent sale and leaseback arrangement with the leasing company cannot be an
	 afterthought or a follow-up financing mechanism. The company must demonstrate
	 its intention, either through simultaneous or concurrent contracts or other
	 documentation that proves their intention was not to purchase, but to resell
	 and lease back the equipment.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-1(10),
		10-45-9.1,
		10-46-2.3.
Example:
Company A enters into a contract with Company B to purchase a
		bulldozer. At the same time, Company A enters into a contract with Company C to
		sell the bulldozer to Company C and lease it back. At the time of purchase from
		Company B, no sales tax is due provided Company A furnishes Company B with an
		exemption certificate. The second transaction, the resale to Company C, is not
		a taxable transaction because the intention of Company A was always to resell
		the equipment to Company C. The lease payments to Company C are subject to
		sales or use tax.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:10 - Consignment sales

Current through Register Vol. 51, page 10, July 15, 2024
If retailers receive articles of tangible personal property or any
	 product transferred electronically on consignment from others and the consigned
	 merchandise is sold in the ordinary course of business along with other
	 merchandise owned by the retailer, such retailers or consignees are held to be
	 making sales at retail. Returns must be filed and the tax remitted to the state
	 by the consignees, along with their remittance from the sale of other
	 merchandise.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:12 - Defective merchandise

Current through Register Vol. 51, page 10, July 15, 2024
If merchandise is sold to a customer who finds a defect in the goods
	 and secures an allowance on the purchase price, the seller may deduct from
	 gross receipts any amount allowed for defects.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:13 - Religious educational institutions

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from services and sales of tangible personal property
	 and any product transferred electronically to religious education institutions
	 are exempt from sales tax. The exemption does not extend to purchases for the
	 personal use of officials, members, and employees or to be used in the
	 operation of a taxable business. Institutions operating cafes, dining rooms, or
	 book stores or vending other merchandise must secure a sales tax license and
	 report sales tax on their receipts from such operations.
Qualification as a religious educational institution depends upon the
	 following factors:
(1) The institution
  is owned, leased, operated by, or affiliated with a religious society which
  meets the following requirements:
(a) A
  religious society is a society which exists to worship God. The members of the
  religious society meet regularly to promote their religious beliefs;
(b) The religious society is organized for
  religious purposes and is nonprofit;
(c) The religious society is exempt under 26
  U.S.C.S § 501(c) or (d) of the Internal Revenue Code in effect on January
  1, 1983;
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:15 - Exemption certificates

Current through Register Vol. 51, page 10, July 15, 2024
Religious education institutions, nonprofit charitable hospitals, and
	 relief agencies must furnish exemption certificates when making exempt
	 purchases.
General Authority:
SDCL
		10-45-47.1(4),
		10-46-35.1(4).
Law Implemented:
SDCL
		10-45-2,
		10-45-10,
		10-45-14,
		10-45-61,
		10-46-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:17 - Federal corporations, sales to

Current through Register Vol. 51, page 10, July 15, 2024
Federal land banks, federal deposit insurance corporations, commodity
	 credit corporations, federal farm mortgage corporations, reconstruction finance
	 corporations, American National Red Cross, and federal credit unions are exempt
	 from sales or use tax on purchases.
This exemption does not extend to sales to or purchases of tangible
	 personal property or any product transferred electronically for the personal
	 use of officials, members, or employees of such institutions or to sales to or
	 purchases of tangible personal property used in the operation of a taxable
	 retail business.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-10.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:19 - Fire and ambulance departments

Current through Register Vol. 51, page 10, July 15, 2024
Municipal and volunteer fire departments and volunteer ambulance
	 departments perform governmental functions. Sales to or purchases by a
	 municipal or volunteer fire department or a volunteer ambulance department are
	 exempt from sales or use tax if the items purchased are for use by the fire
	 department or volunteer ambulance department and title to the items is retained
	 by the fire department or volunteer ambulance department.
Fire departments or volunteer ambulance departments selling admissions
	 to entertainment or selling tangible personal property or any product
	 transferred electronically must pay sales tax on their receipts the same as any
	 other person or organization engaged in such an activity.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-10.
Declaratory Ruling:
The sales tax exemption from
		receipts of sales of tangible personal property to governmental agencies also
		applies to the gross receipts from sales of services to governmental entities.
		Secretary of Revenue Declaratory Ruling No.
		79-3.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:20 - Forms

Current through Register Vol. 51, page 10, July 15, 2024
The department shall furnish copies of the applicable forms, when
	 possible, to persons liable for the tax. A retailer is not excused from making
	 a return by the fact that no form has been furnished to the retailer. A
	 retailer not supplied with the proper form shall apply to the department for it
	 in time to make the report and remittance within the time
	 prescribed.
General Authority:
SDCL
		10-33A-16(2)
		10-45-47.1(2), 10-45D-13(2), 10-46E-11(2), 10-52A-7(2), 49-31-51.1(1).
Law Implemented:
SDCL
		10-33A-10.1,
		10-45-27.3,
		10-45D-10.2,
		10-46A-8,
		10-46A-1.8,
		10-46E-8,
		10-52A-4.2,
		49-31-51.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:21 - Certain organizations not exempt from sales or use tax

Current through Register Vol. 51, page 10, July 15, 2024
Fraternal, religious, benevolent, and charitable organizations are not
	 exempt from payment of sales tax or use tax when the organization is the
	 purchaser at retail of merchandise which it will consume or use. Retailers
	 shall charge sales tax or use tax on all sales of merchandise sold to
	 religious, fraternal, benevolent, or charitable institutions.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2.
Declaratory Rulings:
The Salvation Army is a non-profit
		relief agency not subject to sales tax. Secretary of Revenue Declaratory Ruling
		No. 75-1.
A contractor who installs a pipe organ in a church is subject to
		sales and use tax on the materials used in performance of the contract.
		Secretary of Revenue Declaratory Ruling No.
		78-1.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:23 - Intrastate sales - Sale and delivery in South Dakota

Current through Register Vol. 51, page 10, July 15, 2024
If tangible personal property is located within the state of South
	 Dakota at the time of sale and, pursuant to and as part of the sale, does not
	 leave the state, the entire sale and delivery of the merchandise having taken
	 place in South Dakota whether the purchaser is a nonresident of the state or
	 not, the sale is taxable. It is immaterial where the parties to the contract to
	 sell are located, where the contract was made or accepted, or where the
	 purchase price was paid. The purchaser may, subsequent to the sale, transport
	 property out of the state or use it in the conduct of interstate commerce
	 without affecting the taxability of the sale.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:24 - Interstate sales - Originating in South Dakota

Current through Register Vol. 51, page 10, July 15, 2024
Tax does not extend to gross receipts from sales in which the seller is
	 obligated under the terms of the agreement to make physical delivery of the
	 goods sold, from a point in the state to a point outside the state, not to be
	 returned to a point within the state. Written evidence of the contract of sale
	 must be retained by the retailer to prove physical delivery was made outside
	 South Dakota. Tax does not apply to receipts from a sale if the seller, by
	 carrier or mail, delivers goods sold from a point in this state to a point
	 outside the state on order of the buyer not to be returned to South Dakota. The
	 most acceptable proof delivery was made outside the state will be:
(1) A bill of lading or weight bill made out
  to the seller's order and calling for delivery;
(2) An insurance receipt or registry issued
  by the United States postal department, or a post office department receipt;
  or
(3) A receipt of delivery signed
  by the seller's delivery agent showing the signature and address of the person
  outside this state who received the goods delivered. It is immaterial whether
  the goods are sold f.o.b. origin or f.o.b. destination.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:25 - Interstate sales - Originating in other states

Current through Register Vol. 51, page 10, July 15, 2024
Sales tax liability is incurred when a sale at retail is made for use
	 or consumption in this state. Sales tax must be paid even though the property
	 sold is transported directly to the buyer from a point outside this state if
	 the seller is engaged in the business of selling tangible personal property in
	 this state and if possession of the property is transferred to a buyer residing
	 or located in this state.
The purchase or contract may either precede or follow the interstate
	 shipment. Sales tax applies to the transaction whether the shipment is made
	 free on board (f.o.b.), point of origin or f.o.b. destination and no matter how
	 the goods are transported.
All retailers doing business in this state and maintaining a business
	 office in this state or maintaining agents or solicitors or doing business
	 through independent order takers are subject to the retail sales tax on all
	 sales of merchandise at retail when such sales are made for use and consumption
	 in this state. Contracts or agreements purporting to require shipment of the
	 property outside of South Dakota do not exempt sellers if the tax would
	 otherwise apply. Sales tax applies regardless of whether the sales are made
	 through solicitation, direct mail, or catalogs.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:29 - Municipal tax - Administration and reporting

Current through Register Vol. 51, page 10, July 15, 2024
Reporting of the municipal taxes administered by the department under
	 SDCL chapters 10-52 and 10-52 A shall be incorporated in state tax return
	 forms. Only one return form must be filed to report and remit both state and
	 municipal taxes due.
General Authority:
SDCL
		10-52-4,
		10-52A-7(2).
Law Implemented:
SDCL
		10-52-4,
		10-52A-4.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:30 - Municipal tax - No special permit required

Current through Register Vol. 51, page 10, July 15, 2024
Any retailer issued a permit to engage in business in South Dakota
	 pursuant to SDCL
	 10-45-25 or
	 10-46-22 is considered to be
	 registered for municipal tax pursuant to SDCL
	 10-52-2 and
	 10-52A-2 that the department
	 administers. Every retailer doing business in South Dakota and holding a state
	 tax permit must report and remit municipal tax on taxable transactions where
	 tangible personal property, products transferred electronically, or services
	 are received within a municipality having an ordinance imposing a tax
	 administered by the state pursuant to SDCL
	 10-52-4 or
	 10-52A-2.
General Authority:
SDCL
		10-52-4,
		10-52A-7(1).
Law Implemented:
SDCL
		10-52-4,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:31 - Municipal tax - Credit for tax previously paid

Current through Register Vol. 51, page 10, July 15, 2024
The amount of municipal tax imposed on tangible personal property, any
	 product transferred electronically, or service shall be reduced by the amount
	 of municipal tax previously paid by the taxpayer on the property or services
	 because of liability to another municipality.
General Authority:
SDCL
		10-46-35.1(3),
		10-52-4.
Law Implemented:
SDCL
		10-46-6.1,
		10-52-4.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:33 - Permit for each place of business in state

Current through Register Vol. 51, page 10, July 15, 2024
Retailers must have a tax permit for each place of business in the
	 state except for businesses that have received a statewide permit pursuant to
	 SDCL 10-45-25. Whether the businesses
	 are in the same county or same town is immaterial. This provision applies to
	 each place of business where the business is permanent, temporary, or
	 transient.
General Authority:
SDCL
		10-45-47.1(1),
		10-45D-13(1),
		10-46E-11(1),
		10-52A-7(1).
Law Implemented:
SDCL
		10-45-25,
		10-45D-12,
		10-46E-8,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:34 - Credit for tax previously paid

Current through Register Vol. 51, page 10, July 15, 2024
The amount of use tax imposed on tangible personal property, any
	 product transferred electronically, or service shall be reduced by the amount
	 of sales or use tax previously paid by the taxpayer on the property or service
	 because of liability to another state or its political subdivision.
The amount of excise tax imposed on farm machinery, attachment units,
	 and irrigation equipment used exclusively for agricultural purposes shall be
	 reduced by the amount of sales, use, or gross receipts tax previously paid by
	 the taxpayer on the machinery and equipment because of liability to another
	 state or its political subdivision.
Credit will not be granted for taxes paid on tangible personal
	 property, any product transferred electronically, or service in another state
	 or its political subdivision if that state does not grant a credit for taxes
	 paid on similar tangible personal property, any product transferred
	 electronically, or service in this state. Credit may not be granted when
	 property purchased in another state is shipped by a common carrier or delivered
	 by the seller because there is no sales or use tax liability in that
	 state.
General Authority:
SDCL
		10-46-35.1(3),
		10-46E-11(3).
Law Implemented:
SDCL
		10-46-6.1,
		10-46E-8,
		10-46E-13.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:35 - Required records for sales, rentals, and leases

Current through Register Vol. 51, page 10, July 15, 2024
A seller, retailer, or person storing, using, or otherwise consuming in
	 this state tangible personal property or any product transferred electronically
	 purchased from a retailer and the lessor and lessee of tangible personal
	 property or any product transferred electronically for use in this state shall
	 keep complete records showing the following:
(1) Gross receipts from sales or rental
  payments from leases of tangible personal property or any product transferred
  electronically, including any services that are a part of the sale or lease,
  made within South Dakota, whether the seller or lessor regards the receipts as
  taxable or nontaxable;
(2) All
  deductions allowed by law and claimed in filing returns; and
(3) The total purchase price of all tangible
  personal property or any product transferred electronically purchased for sale,
  consumption, or lease in South Dakota.
These records must include the normal books of account ordinarily
	 maintained by the average prudent business person engaged in the activity in
	 question, together with all bills, receipts, invoices, cash register tapes, or
	 other documents showing the original entries supporting the entries in the
	 books of account as well as all schedules or working papers used in connection
	 with the preparation of tax returns.
General Authority:
SDCL
		10-45-47.1(4),
		10-45D-13(4),
		10-46-35.1(4),
		10-46E-11(4),
		10-52-4,
		10-52A-7(4).
Law Implemented:
SDCL
		10-45-45,
		10-45D-12,
		10-46-39,
		10-46E-8,
		10-52-4,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:35.03 - Records to be preserved for three years - Penalty for failure to maintain records

Current through Register Vol. 51, page 10, July 15, 2024
All records pertaining to transactions involving sales or use tax, or
	 telecommunications access fees liability must be preserved for not less than
	 three years. Records on depreciating assets must be maintained until that asset
	 is fully depreciated.
The records required for the audit must be presented to the auditor for
	 examination on request by the secretary or authorized representatives. For
	 purposes of this section, presentation to the auditor means physically handing
	 over to the auditor those complete documents which are required to be kept by
	 law and which are the subject of the audit.
Failure to maintain and keep complete and accurate records is evidence
	 of negligence or intent to evade the tax and may result in penalties or other
	 administrative action.
General Authority:
SDCL
		10-45-47.1(4),
		10-45D-13(4),
		10-46-35.1(4),
		10-46E-11(4),
		10-52A-7(4),
		10-59-38(2),
		49-31-51.1(3).
Law Implemented:
SDCL
		10-45-45,
		10-45D-12,
		10-46-2,
		10-46-39,
		10-46E-8,
		10-52A-6,
		10-59-3,
		10-59-7,
		10-59-16,
		49-31-51.1(3).
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:35.04 - Sample periods for audits

Current through Register Vol. 51, page 10, July 15, 2024
An auditor conducting an audit for the department may choose to do a
	 sample audit, random or judgmental, rather than a detailed examination of all
	 records for the audit period. The auditor shall determine the sample size based
	 on the records available, internal controls, changes in the accounting system,
	 and changes in business operations. If the auditor uses a judgmental block
	 sampling method and the taxpayer does not agree to a different percentage, the
	 auditor shall select no less than ten percent of the taxpayer's sales and use
	 tax reporting periods to determine whether sales and use tax was properly
	 charged. The auditor shall apply the error factor, if any, calculated from the
	 sample to all periods of the audit.
General Authority:
SDCL
		10-45-47.1(5),
		10-45D-13(5),
		10-46E-11(4),
		10-47B-2,
		10-52-4,
		10-52A-7(5),
		10-59-38,
		49-31-51.1(4).
Law Implemented:
SDCL
		10-45-45,
		10-45D-12,
		10-46E-8,
		10-47B-2,
		10-52-4,
		10-52A-6,
		10-59-5,
		49-31-51.1(4).
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:35.05 - Use of other records to verify audits

Current through Register Vol. 51, page 10, July 15, 2024
For auditing purposes, the auditor may refer to other records to
	 determine the tax liability of the taxpayer, as follows:
(1) When the gross sales records are
  inadequate, the auditor may refer to the following records:
(a) Federal income tax returns;
(b) Bank statements, including checks,
  deposit slips, and bank records of loans;
(c) Purchase invoices or journals;
(d) Gross profit tests based on expenses and
  withdrawals; and
(e) Cash
  transactions;
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:37 - Refunds to consumers

Current through Register Vol. 51, page 10, July 15, 2024
If a retailer allows a refund or credit to a customer and the refund or
	 credit is deductible from the retailer's gross receipts, the retailer must
	 return to, or credit the customer with the amount of tax passed on to the
	 customer on the amount of deductible gross receipts. Refunds on merchandise,
	 the sales of which were included in the gross taxable receipts may be entered
	 in the tax return as a deduction on the line provided for such
	 purpose.
General Authority:
SDCL
		10-45-47.1,
		10-45D-13(2),
		10-46E-11(2),
		10-52-4,
		10-52A-7(2).
Law Implemented:
SDCL
		10-45-29,
		10-45D-12,
		10-46E-8,
		10-52-4,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:39 - Return of tax reports and telecommunications access fees

Current through Register Vol. 51, page 10, July 15, 2024
After a tax permit is issued, tax and telecommunications access fee
	 blanks on which the retailer is to report and remit tax, municipal tax, gross
	 receipts tax on visitor-related businesses, and telecommunications access fees
	 to the department shall be sent to the retailer each reporting period. Failure
	 to receive a sales and use tax return or telecommunication access fee return
	 does not excuse failure to report or pay tax on time. All remittances must be
	 made payable to the state treasurer. Any retailer that reports and remits taxes
	 by electronic transmission pursuant to SDCL
	 10-59-32 will not be sent a
	 return.
A tax or telecommunications access fee return is made to the department
	 when a completed state and municipal sales and use tax return or
	 telecommunications access fee form is received at the office of the department
	 in Pierre or at a field office of the department. A remittance is made to the
	 department when an order on a bank or other remitter to pay a stated amount to
	 the named payee, which is not thereafter dishonored, is received at the office
	 of the department in Pierre or at a field office of the department. If a return
	 or remittance is mailed with sufficient postage, the date of receipt is the
	 date of the United States postal service postmark. If there is no postmark, the
	 postmark date is illegible, the postmark is not that of the United States
	 postal service, or the return or remittance is not mailed by either certified
	 or registered mail, the return or remittance is made on the date the return is
	 received at the office of the department in Pierre or at a field office of the
	 department.
General Authority:
SDCL
		10-45-47.1(2),
		10-45D-13(2),
		10-46E-11(2),
		10-52-4,
		10-52A-7(2),
		49-31-51.1(1).
Law Implemented:
SDCL
		10-45-27.3,
		10-45D-10.2,
		10-45D-12,
		10-46E-8,
		10-52-4,
		10-52A-4.2,
		10-52A-6,
		49-31-51.1(1).
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:39.02 - Monthly filing

Current through Register Vol. 51, page 10, July 15, 2024
Taxpayers required to file monthly, as set forth in SDCL
	 10-46E-8,
	 10-45-27.3, and
	 10-52A-4.2, shall remain on the
	 monthly filing system for a minimum period of two years.
Taxpayers with bimonthly taxes of more than $166.66 and taxpayers with
	 monthly taxes of more than $83.33 must file monthly.
General Authority:
SDCL
		10-45-47.1(2),
		10-45D-13(2),
		10-46E-11(2),
		10-52A-7(2).
Law Implemented:
SDCL
		10-45D-12,
		10-45-27.3,
		10-46E-8,
		10-52A-4.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:39.03 - Return and remittance - Streamline volunteer registrations

Current through Register Vol. 51, page 10, July 15, 2024
Any seller that is registered under the Streamline agreement, which
	 does not have a legal requirement to register in the member state, and is not a
	 Model 1, 2, or 3 seller as defined below, shall submit its sales and use tax
	 returns as follows:
(1) Upon
  registration, a member state shall provide to the seller the returns required
  by that state; and
(2) The seller
  must file a return each month unless the state allows less frequent filing.
A Model 1 seller is a seller that has selected a certified service
	 provider, as defined in SDCL subdivision 10-45C-1(c), as its agent to perform
	 all of the seller's sales and use tax functions, other than the seller's
	 obligation to remit tax on its own purchases.
A Model 2 seller is a seller that has selected a certified automated
	 system, as defined in SDCL subdivision 10-45C-1(c), to perform part of its
	 sales and use tax functions, but retains responsibility for remitting
	 tax.
A Model 3 seller is a seller that has sales in at least five member
	 states, has total annual sales revenues of at least five hundred million
	 dollars, has a proprietary system that calculates the amount of tax due in each
	 jurisdiction, and has entered into a performance agreement with the member
	 states that establishes a tax performance standard for the seller. As used in
	 this definition, a seller includes an affiliated group of sellers using the
	 same proprietary system.
General Authority:
SDCL
		10-45-47.1(2).
Law Implemented:
SDCL
		10-45-27.3.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:40 - Preparation of return

Current through Register Vol. 51, page 10, July 15, 2024
The tax return is a combination sales and use tax report. Sales are
	 reported under gross receipts, and withdrawals from stock or purchases for own
	 use or contract use are reported at cost as a use tax item. Deductible receipts
	 are listed on the tax return; and if other deductions are claimed, the
	 deductions may be listed provided an explanation is attached.
General Authority:
SDCL
		10-45-47.1(2),
		10-45D-13(2),
		10-46-35.1,
		10-46E-11(2),
		10-52A-7(2).
Law Implemented:
SDCL
		10-45-27.3,
		10-45D-10.2,
		10-46-39,
		10-46E-8,
		10-52A-4.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:41 - Returned merchandise

Current through Register Vol. 51, page 10, July 15, 2024
If a retailer sells tangible personal property or any product
	 transferred electronically and the goods are returned by the customer, the
	 transaction is handled as follows:
(1)
  If the retailer has included in gross sales the total selling price of the
  property and has remitted sales tax to the department, the retailer may claim a
  credit as returned goods for the amount of the sale on a subsequent sales and
  use tax return if sales tax was returned to the purchaser at the time the goods
  were returned; and
(2) If a
  retailer makes a time sale and has included in the gross receipts only the
  amount of each payment actually received from the time sale, the retailer may
  claim a credit as returned goods on a subsequent sales and use tax return the
  amount of the sale reported on prior sales and use tax returns if the retailer
  has returned to the customer the tax which the retailer collected on payments
  previously received from the customer.
General Authority:
SDCL
		10-45-47.1(2),
		10-45D-13(3),
		10-46E-11(3),
		10-52A-7(3).
Law Implemented:
SDCL
		10-45-29,
		10-45D-12,
		10-46E-8,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:42 - Representing out of state dealers - Extra permits

Current through Register Vol. 51, page 10, July 15, 2024
Agents, sales persons, solicitors, canvassers, or representatives
	 representing out-of-state dealers registered under either the retail sales tax
	 or use tax laws must, if traveling from place to place, carry a license card as
	 proof they are representing such out-of-state dealer. Extra cards will be
	 furnished for representatives upon request to the department.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-24.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:43 - Sales by loan or finance companies

Current through Register Vol. 51, page 10, July 15, 2024
Companies who repossess or acquire tangible personal property or any
	 product transferred electronically in connection with their loan or finance
	 business and who sell such property at retail are required to pay sales tax on
	 the receipts.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45.2.4.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:44 - Sale of business permit not transferable

Current through Register Vol. 51, page 10, July 15, 2024
When the holder of a tax permit sells the business to another person,
	 all tax for which the holder is liable becomes due immediately. The holder of
	 the tax permit shall immediately notify the department and surrender the permit
	 for cancellation and shall, within 15 days, make a final tax return and remit
	 all tax due. The purchaser of the business shall apply for a new permit in the
	 purchaser's own name.
General Authority:
SDCL
		10-45-47.1(1),
		10-45D-13(1),
		10-46E-11(2),
		10-52A-7(1).
Law Implemented:
SDCL
		10-45-24,
		10-45D-12,
		10-46E-8,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:49 - Student sororities and fraternities

Current through Register Vol. 51, page 10, July 15, 2024
Student sororities and fraternities are considered users or consumers
	 of merchandise they purchase and not retailers. These organizations do not need
	 a retail sales tax license but must pay tax when making purchases from retail
	 and wholesale companies.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:01 - Administration of program › Section 64:06:01:50 - Tax on gross receipts

Current through Register Vol. 51, page 10, July 15, 2024
Sales tax must be computed and paid to the state on taxable receipts
	 even though such receipts include single sales on which no tax may be charged
	 to the customer. A seller may elect to compute tax due on a transaction on an
	 item or invoice basis. The rounding rule as defined in §10-45-1.4 may be
	 applied to the aggregated state and local tax or applied separately to each
	 tax.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-1.4,
		10-45-2.