reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:34.10 - Resale of solid waste tipping fees

Current through Register Vol. 51, page 10, July 15, 2024
Tipping fees charged at a landfill, dump, material recovery facility,
	 transfer station, recycling site, rubble site, or other similar site to a
	 commercial solid waste carrier may be sold for resale. If a solid waste carrier
	 provides a valid exemption certificate, no sales tax is due on the tipping fee.
	 Any tipping fee charged to an individual or business that is not purchasing
	 tipping fees for resale is subject to the state sales tax.
Any person or business disposing of its own solid waste is not in the
	 business of solid waste disposal and may not purchase a tipping fee for
	 resale.
The gross receipts of a solid waste carrier, private or public, or any
	 other entity charging for solid waste disposal are subject to the state sales
	 tax. No deduction is allowed for tipping fees or any other fees passed on to
	 the customer, even if separately charged.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-12.1,
		10-45-61.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:38 - Garage and service stations

Current through Register Vol. 51, page 10, July 15, 2024
Garage and service stations are subject to sales tax. Receipts from the
	 sale of motor fuel subject to motor fuel tax are exempt. Taxable charges
	 include repair work, car washing, towing, greasing, tire patching, storage, and
	 any other services performed in a garage or service station. If a garage or
	 service station employs a second garage or service station to perform services
	 for a customer, the one making the charge to the customer shall report the tax
	 to the state.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:38.01 - Tax on towing services

Current through Register Vol. 51, page 10, July 15, 2024
State sales tax and municipal sales tax on a towing service shall be
	 determined by the destination of the vehicle towed.
General Authority:
SDCL
		10-45-47.1,
		10-52-4.
Law Implemented:
SDCL
		10-45-5,
		10-45-5.2,
		10-52-2,
		10-52-4.
Examples:
(1) A's car breaks down in a rural area of South Dakota. A hires a
		towing service to tow the car into the nearest town for repairs. That town is
		located in South Dakota and has a municipal sales tax. The place of destination
		determines what tax is due, so both South Dakota sales tax and the town's sales
		tax apply.
(2) A's car breaks down in South Dakota. A is close to the Minnesota
		border, so A hires a towing service to tow the car into a Minnesota town for
		repairs. Neither South Dakota sales tax nor any South Dakota municipal sales
		tax applies.
(3) A's car breaks down in a rural area of South Dakota. A's home is
		located close by, but not within a municipality. A hires a tow truck from the
		nearest town to tow the car home. South Dakota sales tax applies to the towing
		service, but no municipal sales tax applies because the destination is not
		located within a municipality.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:39 - Garage and service stations - Resale

Current through Register Vol. 51, page 10, July 15, 2024
Garages and service stations may purchase items for resale exempt from
	 sales tax. Supplies which are consumed by a garage or service station and
	 equipment are subject to sales tax when purchased from a
	 supplier.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-46-2,
		10-46-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:40 - Janitorial supplies and services

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from engaging in the business of furnishing janitorial
	 supplies or services are subject to sales tax. A janitorial business is the
	 consumer of supplies and equipment and shall pay sales or use tax on the cost
	 of such items.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-5,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:41 - Jewelers and watch repair

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from retail sales of jewelry and other merchandise by a
	 jewelry store are subject to sales tax. Charges for repair services by a
	 jeweler or watch repair person are also subject to sales tax. Parts which
	 become a part of a repaired item may be purchased by a jeweler or watch repair
	 person exempt from sales tax because they are resold to the customer. A jeweler
	 or watch repair person must pay use tax on the cost of equipment and supplies
	 which the jeweler or watch repair person consumes unless the South Dakota sales
	 tax has been paid to a licensed supplier.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-5,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:42 - Linen and towel supply

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts of a linen and towel supply business are taxable.
	 Taxable receipts include those received from the sale of products and charges
	 for rental or use of supplies. Charges to cafes and others for uniforms and for
	 towels used by barbers and linens used by motels and hotels are examples of
	 taxable receipts.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-5,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:43 - Machine work

Current through Register Vol. 51, page 10, July 15, 2024
Sales tax applies to charges of machine shops and other similar
	 businesses for fabrication of tangible personal property for consumers.
Fabrication includes any operation which results in creation or
	 production of an article or which is a step in a process or series of
	 operations resulting in creation or production of an article.
Sales tax applies to the gross receipts of machine works from retail
	 sales of tangible personal property and from repair services.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-5,
		10-46-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:44 - Mattress rebuilding

Current through Register Vol. 51, page 10, July 15, 2024
Mattress rebuilding is a repair service subject to sales tax because it
	 restores tangible personal property to or near its former condition. The entire
	 charge for rebuilding a mattress is subject to sales tax. Materials which
	 become part of a mattress may be purchased exempt from tax by the mattress
	 rebuilder because they pass ultimately to the customer. Other equipment and
	 supplies purchased by a mattress rebuilder are subject to sales or use
	 tax.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-5,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:45 - Oculists and ophthalmologists

Current through Register Vol. 51, page 10, July 15, 2024
Services of oculists and ophthalmologists are not subject to sales tax
	 if they render professional services confined to examination, surgery, and
	 treatment of the eyes.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-4,
		10-45-12.1.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:50 - Pawnbrokers

Current through Register Vol. 51, page 10, July 15, 2024
As used in this section, "pawnbroker" means a person who is primarily
	 engaged in the business of lending money and who accepts tangible personal
	 property or any product transferred electronically as security for the loan. If
	 the property is redeemed within a specified time, sales tax applies to any
	 commission, storage fees, or other similar charges made by the pawnbroker. If
	 payment is not made within the specified time, the property is forfeited to the
	 pawnbroker, to whom title to the property passes. If the pawn broker thereafter
	 sells the property at retail, the gross receipts are subject to sales
	 tax.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-45-12.1.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:51 - Pet grooming

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from engaging in the business of clipping, styling, or
	 manicuring household pets are subject to sales tax. Taxable gross includes
	 items of merchandise sold and the service performed. Persons or firms providing
	 such services are the consumers of supplies and equipment which is used or
	 consumed by them in rendering their services.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-5.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:52 - Photographers, photo developers, and finishers

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from photography, photo developing, finishing, and
	 tinting are taxable. Sales of photostat copies by a photostat producer, frames,
	 films, and other articles at retail are sales of tangible property subject to
	 sales tax. Sales of photographs by commercial or portrait photographers are
	 taxable. Sales of equipment to a photographer and supplies which do not become
	 part of the product ultimately passing to a customer are subject to sales or
	 use tax.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-5,
		10-45-12.1,
		10-45-20,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:53 - Practitioners in healing arts

Current through Register Vol. 51, page 10, July 15, 2024
Charges for professional services by physicians, surgeons,
	 chiropractors, podiatrists, osteopaths, and physical therapists are not
	 taxable.
Sales of tangible personal property and any product transferred
	 electronically to practitioners of the healing arts by South Dakota drug or
	 medical supply houses are considered a sale to the consumer and subject to
	 tax.
The purchase of X-ray equipment, operating room furniture and fixtures,
	 and all other tangible personal property or any product transferred
	 electronically used or consumed is subject to sales tax if purchased from a
	 licensed dealer or subject to the use tax if purchased from an unlicensed
	 dealer.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-45-5,
		10-45-12.1,
		10-46-2,
		10-46-2.2.
Declaratory Ruling:
A business that provides microfiches
		of individuals' personal and medical history to be carried with them for
		emergency situations and which also keeps the histories in a data bank for use
		when a microfiche reader is not available, does not provide a health service
		and is subject to the sales tax. Secretary of Revenue Declaratory Ruling No.
		80-7.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:57 - Printers, engravers, multigraphers, and mimeographers

Current through Register Vol. 51, page 10, July 15, 2024
Printers, engravers, multigraphers, and mimeographers shall pay sales
	 tax on the full charges made by them for their work unless the work is done for
	 resale. Sales tax applies to charges for printing books, pamphlets, and
	 brochures; to charges for setting copy in type and assembling art work plate in
	 form; to engravers' charges for making metal plates; and to electrotypers'
	 charges for making electrotypes or matrices.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-4,
		10-45-5.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:58 - Repair services

Current through Register Vol. 51, page 10, July 15, 2024
All charges for repair services, including maintenance agreements, are
	 subject to sales tax. Repair of personal property or any product transferred
	 electronically is a service in which property is restored to or near its former
	 condition or usefulness. A person engaged in the repair business must have a
	 sales tax license and report tax on the gross receipts.
Items purchased by a repair person which become part of the repaired
	 property may be purchased exempt from sales tax by the repair person. The
	 charges to the customer for the parts and service are taxable. Tools,
	 equipment, and supplies consumed by a repair person are subject to sales tax
	 when purchased. A business is liable for use tax on all items of tangible
	 personal property and any product transferred electronically used by the
	 business even though an item may have been especially fabricated to produce a
	 product for a particular customer, is completely consumed in completing the
	 customer's order, and the cost of the item is included in the charge to the
	 customer.
A person who occasionally does some repair work but does not hold out
	 to the public that the person does repair work is not considered to be in a
	 repair business subject to sales tax.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:59 - Retirement and nursing homes

Current through Register Vol. 51, page 10, July 15, 2024
If tangible personal property or any product transferred
	 electronically, including food, is furnished to residents by the operator of a
	 retirement or nursing home, a taxable retail sale is made and the operator is
	 subject to tax on those sales. Sales tax on food shall be calculated according
	 to §
									64:06:02:72 or upon actual
	 charges.
Upon prior written approval the department may allow operators of
	 retirement or nursing homes to pay sales tax passed on by suppliers in lieu of
	 requiring operators to become licensed and pay sales tax directly to the
	 department.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-46-2,
		10-46-2.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:60 - Shoe repairers

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from repair services of shoe repairers are subject to
	 sales tax. If shoes or other merchandise are sold such items are also subject
	 to sales tax. Repair supplies such as soles and heels may be purchased exempt
	 from sales tax by the shoe repairers because they ultimately pass to their
	 customers and become part of the taxable charge. A shoe repairer must pay use
	 tax on the cost of equipment and supplies which do not become part of items
	 repaired, unless the South Dakota sales tax has been paid to a licensed
	 supplier.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-5,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:63 - Tire treading

Current through Register Vol. 51, page 10, July 15, 2024
The gross receipts from tire retreading are subject to sales tax. If
	 tire retreading operators purchase second hand tires and retread them, the sale
	 of the tires is taxable. If the customer furnishes the tire, the entire charge
	 for retreading the tire is subject to sales tax. Materials which become a part
	 of a retread tire may be purchased exempt from tax by the tire shop. Equipment
	 and supplies which do not become a part of a retread tire are subject to sales
	 tax if purchased from a licensed vendor by a tire shop.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:64 - Upholsterers

Current through Register Vol. 51, page 10, July 15, 2024
Persons engaged in reupholstering furniture belonging to others are
	 engaged in repair service subject to sales tax. An upholsterer must report tax
	 on receipts from customers for the service and materials. Materials which
	 become part of repaired furniture may be purchased exempt, but supplies and
	 equipment are subject to sales or use tax.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:65 - Sales to veterinarians

Current through Register Vol. 51, page 10, July 15, 2024
Veterinarians are primarily engaged in the business of rendering
	 professional services to the owners of animals through the diagnosis,
	 medication, and treatment of such animals and the performance of surgical
	 operations on such animals. Veterinarians may purchase for resale medicines,
	 bandages and dressings, serums, appliances, and tonics used by them in
	 connection with the performance of their services if such items are injected
	 into or placed on the animal. All other items of tangible personal property and
	 any product transferred electronically used by veterinarians in connection with
	 the performance of their services are subject to sales or use tax. Laboratory
	 services purchased for a current customer may be purchased for
	 resale.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-4,
		10-45-2.4,
		10-46-2,
		10-46-2.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:70 - Amusement devices - Mechanical

Current through Register Vol. 51, page 10, July 15, 2024
The operators or owners of coin operated mechanical machines and
	 devices which are placed in businesses belonging to others are retailers and
	 must hold a retail sales tax license to report the entire gross receipts from
	 the operation of such machines and devices, and pay the sales tax
	 thereon.
General Authority:
SDCL
		10-45-47.1(1).
Law Implemented:
SDCL
		10-58-3.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:72 - Hospitals - Taxable charges and subsistence

Current through Register Vol. 51, page 10, July 15, 2024
The sale of food and all other items of tangible personal property or
	 any product transferred electronically to hospital patients (except those sales
	 exempted by SDCL
	 10-45-14.6), visitors, employees,
	 officials, members, and others is subject to sales tax. Sales to patients of
	 drugs prescribed by prescription are exempt. Sales tax on food furnished to
	 patients shall be computed at $9.66 per patient day.
Newborn care is not included as patient care for purposes of sales tax
	 on food furnished to patients.
If subsistence is allowed or granted to a hospital employee in lieu of
	 salary, sales tax shall be remitted on the basis of $69 per person per
	 month.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-45-14,
		10-45-14.1,
		10-45-14.6.
Declaratory Ruling:
Public alcohol treatment facilities
		approved and funded by the state division of alcoholism are not political
		subdivisions of the state and are not exempt from sales tax. Secretary of
		Revenue Declaratory Ruling No.
		80-4.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:73 - Hospitals - Nontaxable charges

Current through Register Vol. 51, page 10, July 15, 2024
Charges for a hospital room, prescription drugs, and hospital services
	 are exempt from sales tax.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-7,
		10-45-14,
		10-45-14.1.
Examples:
Examples of nontaxable charges include:
		oxygen, anesthetics, intravenous solutions, plasma, drugs, antibiotics,
		operating room anesthetist, blood transfusions, nursery, laboratory, delivery
		room, basal metabolism, treatments and
		x-rays.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:74 - Hospitals - License required - Purchases for members or employees taxable

Current through Register Vol. 51, page 10, July 15, 2024
Hospitals must hold a sales tax license and file returns on forms
	 provided by the department.
Sales tax must be paid on personal items furnished to officials,
	 members, or employees without charge. If subsistence is furnished without
	 charge or without an allowance in lieu of salary, tax shall be paid on $69 per
	 person per month. Sisters and chaplains are considered members or employees;
	 students are not.
General Authority:
SDCL
		10-45-47.1
Law Implemented:
SDCL
		10-45-2,
		10-45-14,
		10-45-14.1.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:75 - Lodging establishments

Current through Register Vol. 51, page 10, July 15, 2024
Sales of supplies and equipment to a lodging establishment are taxable.
	 Lodging establishments are the consumers of supplies and equipment which are
	 consumed or used by them in rendering their services. If the sales tax on such
	 items is not paid to a South Dakota licensed supplier when they are purchased,
	 the cost of such items must be reported as a use tax item on the sales tax
	 return. Examples of such items include paper cups, plastic cups, laundry bags,
	 soap, shower caps, toilet tissue, facial tissue, shoe polish, toilet bands,
	 stationary, consumables and refreshments provided as a convenience to the
	 guest, cleaning products, and other items consumed on the premises by the
	 lodging establishment.
Charges to a lodging establishment by a laundry, linen, or towel supply
	 company are taxable. A lodging establishment does not retail such items but
	 purchases them or uses the services for the purpose of providing sleeping
	 accommodations.
Laundry and dry cleaning establishments must report tax on their
	 charges for services to hotel, motel, or tourist home guests even though
	 payment is received from the hotel, motel, or tourist home. Hotels, motels, and
	 tourist homes are considered agents for laundry and dry cleaning establishments
	 and do not report tax to the department on receipts which are collected for a
	 laundry or dry cleaner.
General Authority:
SDCL
		10-45-47.1(3),
		10-45D-13(3),
		10-46-35.1(3),
		10-52A-7(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-7,
		10-45D-2,
		10-46-2,
		10-52A-2.
Declaratory Ruling:
Rental of boat slips for more than
		28 days, where the lessor provides a night guard, gasoline service, towing
		service, and a check-in system for boat owners, is the providing of a service
		rather than the rental of tangible personal property, and, as such, is subject
		to the sales tax. Secretary of Revenue Declaratory Ruling No.
		80-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:76 - Specialty cleaners

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from the business of furnishing specialty cleaning
	 services are subject to sales tax. A specialty cleaner is one which holds
	 itself out to the public as providing any cleaning service. A specialty cleaner
	 is the consumer of supplies and equipment and must pay sales or use tax on the
	 cost of such items.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-5,
		10-46-2.
Examples:
Examples include but are not limited to
		cleaners of: furniture, floor coverings, heating and cooling systems, walls,
		ceilings, plumbing and windows, and all other cleaning services to real or
		personal property.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:78 - Computer services - Software

Current through Register Vol. 51, page 10, July 15, 2024
The gross receipts from the sale of computer software, technical
	 services and attendant appliances, equipment, and facilities are subject to the
	 retail occupational sales tax.
A computer is an electronic device that accepts information in digital
	 or similar form and manipulates the information for a result based on a
	 sequence of instructions. Computer software is a set of coded instructions
	 designed to cause a computer or automatic data processing equipment to perform
	 a task.
The following are examples of the services, appliances, equipment, and
	 facilities which are taxable:
(1)
  Tangible personal property or any product transferred electronically such as
  instructions, directions, models, and layout sheets which are elements of
  technical service transactions;
(2)
  Designing and implementing of computer systems;
(3) Designing of storage and data retrieval
  systems;
(4) Consulting
  services;
(5) Feasibility
  studies;
(6) Evaluation of
  bids;
(7) Providing of technical
  assistance;
(8) Fees or access
  charges for access to data bases or networks; and
(9) Fees or access charges for access to
  software, programs, or computer systems.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-45-4,
		10-45-5.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:79 - Computer services - Software - Prewritten programs

Current through Register Vol. 51, page 10, July 15, 2024
The sale of a prewritten computer program is the sale of tangible
	 personal property subject to sales tax. The term, prewritten computer software,
	 includes any prewritten upgrade, which is not designed and developed by the
	 author or other creator to the specifications of a specific purchaser. The
	 combining of two or more prewritten computer software programs or prewritten
	 portions thereof does not cause the combination to be other than prewritten
	 computer software. Prewritten computer software also includes software designed
	 and developed by the author or other creator to the specifications of a
	 specific purchaser when it is sold to another person. If a person modifies or
	 enhances prewritten computer software of which the person is not the author or
	 creator, the person is deemed to be the author or creator only of such person's
	 modifications or enhancements. Prewritten computer software or a prewritten
	 portion thereof that is modified or enhanced to any degree, when such
	 modification or enhancement is designed and developed to the specifications of
	 a specific purchaser, remains prewritten computer software; unless there is a
	 reasonable, separately stated charge or an invoice or other statement of the
	 price given to the purchaser for such modification or enhancement, then such
	 modification or enhancement does not constitute prewritten computer
	 software.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-4,
		10-45-5.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:80 - Computer services - Computer programming

Current through Register Vol. 51, page 10, July 15, 2024
Computer programming services include the designing and writing of
	 custom programs and the modification or enhancements to prewritten computer
	 software when there is a reasonable, separately stated charge or an invoice or
	 other statement of the price given to the purchaser for such modification or
	 enhancement.
General Authority:
SDCL
		10-45-47.1(3)
Law Implemented:
SDCL
		10-45-2,
		10-45-4,
		10-45-5.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:81.01 - Taxability of nonresident attorneys services used in South Dakota

Current through Register Vol. 51, page 10, July 15, 2024
Any person using services in South Dakota that are provided by a
	 nonresident attorney is liable for use tax on the cost of the services if sales
	 tax is not paid.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-4,
		10-45-4.1,
		10-45-5.2,
		10-45-12.3,
		10-45-108,
		10-46-2.1,
		10-46-18.1.
Examples:
(1) Carl Client hires Linda Lawyer, an Iowa attorney, to represent
		Carl in a South Dakota lawsuit. Linda does not have a license to practice law
		in South Dakota but, pursuant to SDCL
		16-18-2, is admitted to represent
		Carl in Carl's lawsuit. Linda must obtain a South Dakota sales tax permit.
		Linda does not pay sales tax on gross receipts from the services provided by
		Linda to Carl because Lindas office is in Iowa. Carl will owe use tax because
		the service is used for a lawsuit in South Dakota.
(2) Ivana Inventor, a South Dakota resident, hires Adam Attorney, a
		Minnesota attorney, to obtain a patent for Ivana. Adam is not licensed to
		practice law in South Dakota and is not required to comply with SDCL
		16-18-2. Adam's legal services to
		obtain the patent are used by Ivana in South Dakota and Ivana is liable for use
		tax.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:82 - Accessories, equipment, and repair or replacement parts on motor vehicles

Current through Register Vol. 51, page 10, July 15, 2024
Additional accessories or equipment added to motor vehicles are not
	 subject to sales or use tax if they are included in the bill of sale and the
	 amount upon which the motor vehicle excise tax is based.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-46-2,
		10-46-3.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:83 - Rental facilities

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts resulting from services performed by the owner of a
	 rental facility are taxable if they are offered as an optional service to the
	 renter and are separately charged.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1,
		10-46-40.
Law Implemented:
SDCL
		10-45-4.1,
		10-45-5.2,
		10-45-7,
		10-45-12.1,
		10-46-2.1.
Examples:
(1) Ann Adams rents an office from the U Rent It Agency for $1,000 a
		month. Included in the rental fee are electricity, heat, water, and janitorial
		services. For an additional $25 per month, U Rent It will provide security
		guard services. The $1,000 rental fee is not taxable, but the $25 optional
		service is subject to tax.
(2) Sam Smith rents an apartment from Condo Heaven. The basic rent of
		$1,000 a month includes the apartment, parking space, water, and garbage
		collection. For an additional $10 a month, the owner will provide weekly
		laundry and dry cleaning pickup and delivery. The $1,000 rental fee is not
		subject to tax, but the $10 laundry fee is a taxable service.
Declaratory Ruling:
Rental of boat slips for more than
		28 days, where the lessor provides a night guard, gasoline service, towing
		service, and a check-in system for boat owners, is the providing of a service
		rather than the rental of tangible personal property, and, as such, is subject
		to the sales tax. Secretary of Revenue Declaratory Ruling No.
		80-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:84 - Hunting and fishing rights

Current through Register Vol. 51, page 10, July 15, 2024
A landowner who exclusively grants to another the right to hunt or fish
	 on the landowner's property for an annual or seasonal fee is not subject to tax
	 on that amount. A written agreement, filed with the register of deeds,
	 containing the terms of the contract, including the price for the grant and a
	 legal description of the property, is evidence of a grant of property rights
	 which is not taxable. Any services provided by the landowner are subject to
	 tax.
A landowner who allows hunting or fishing on the landowner's property,
	 not under an exclusive grant in writing, is subject to tax on the gross
	 receipts.
General Authority:
SDCL
		10-45-47.1(3),
		10-45D-13(3).
Law Implemented:
SDCL
		10-45-4.1,
		10-45-5.2,
		10-45-7,
		10-45-8,
		10-45D-2.
Examples:
(1) Farmer Brown agrees to lease land for hunting purposes to the ABC
		corporation. A written agreement is entered into stating the fee charged, the
		description of the land to be hunted on, and the time hunting may occur. Farmer
		Brown also agrees to release a certain number of birds during the hunt and to
		plant cover crops on the land to be hunted. Additionally, Farmer Brown will
		provide a new access road and a campground area for the hunters to stay at. The
		agreement is filed with the Register of Deeds.
Although an agreement is entered into which suggests a nontaxable
		lease of real property, services are furnished which are taxable. Because the
		services are not separately stated, the entire amount of the fee is subject to
		tax.
If separate fees are listed for the leasehold interest and the
		services provided, tax is due only on the services provided.
(2) Each year Farmer Smith allows hunters to come onto Farmer Smith's
		land to hunt and fish. Farmer Smith charges $50 a person to hunt and $15 a
		person to fish. Farmer Smith limits the number of hunters to five and fishers
		to seven and only allows them on the property from 8 o'clock a.m. until 5
		o'clock p.m. All of Farmer Smith's gross receipts from allowing hunting and
		fishing on the property are
		taxable.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:85 - Real estate brokers

Current through Register Vol. 51, page 10, July 15, 2024
Any commission received by a real estate broker or agent, under any
	 type of agency agreement, is subject to the state sales tax unless the
	 commission is otherwise specifically exempted. Any fee originating from the
	 sale of real property sold in the state of South Dakota, regardless of the
	 broker's or agent's residence, is subject to sales tax. Municipal sales tax
	 applies to any sale of real property located within the municipality's
	 limits.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-5.2.
Examples:
(1) A real estate broker takes a listing on a home in Pierre. Under
		the multiple listing agreement, another agent sells the property. The listing
		broker collects the commission and the state and city sales tax. The broker
		then distributes the selling agent's percentage of the commission and the
		applicable sales tax to the selling agent. The listing broker remits state and
		city sales tax on that portion of the commission to which the broker was
		entitled. The selling agent remits state and city sales tax on the portion the
		selling agent received.
(2) A real estate broker takes an exclusive listing on an acreage in
		rural South Dakota. The broker collects the commission and state sales tax
		after the property is sold and remits the sales tax to the
		department.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:86 - Marina defined

Current through Register Vol. 51, page 10, July 15, 2024
For the purpose of the tax imposed by SDCL
	 10-45D-7, a marina is a business
	 that owns or operates secure moorings for boats at a dock or basin. A marina
	 includes any supply, repair, and other facilities provided in addition to
	 secure moorings. A secure mooring is a boat slip or other device used to dock
	 or store a boat for an extended period of time. The ability to tie a boat to a
	 space for a short period, such as during dinner, is not a secure
	 mooring.
General Authority:
SDCL
		10-45D-13(3).
Law Implemented:
SDCL
		10-45D-12.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:87 - Taxation of persons providing medical expert testimony or consulting services

Current through Register Vol. 51, page 10, July 15, 2024
Medical expert consulting services and medical expert testimony
	 associated with litigation are not health services and the gross receipts for
	 providing such services are subject to sales tax. Services provided to a
	 patient associated with diagnosis or treatment are health services and are not
	 subject to sales tax pursuant to SDCL
	 10-45-12.1. Services concerning
	 diagnosis or treatment that are incidental to consulting services associated
	 with litigation constitute health services and are not subject to sales
	 tax.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-4,
		10-45-4.1.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:88 - Travel agency reservation services

Current through Register Vol. 51, page 10, July 15, 2024
Any gross receipts received by a retailer providing reservation
	 services to a travel agency are subject to sales tax. If the charge by the
	 retailer for providing a reservation service is subject to a discount, then
	 only the actual gross receipts received by the retailer are subject to sales
	 tax.
This section applies to any receipts the retailer receives from airline
	 boarding fees, hotel and motel reservation fees, and automobiles, buses,
	 trains, cruise lines, and other transportation reservation fees.
If the retailer provides tangible personal property or any product
	 transferred electronically that is an integral component of the reservation
	 service to a travel agency, then the retailer is deemed to be the user of the
	 tangible personal property or the product transferred electronically and is
	 liable for use tax on the purchase price of the tangible personal property and
	 the product transferred electronically if sales tax has not previously been
	 paid.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-4,
		10-45-2.4,
		10-45-5,
		10-46-2,
		10-46-2.2.
Example:
Zeus Travel, Inc. provides reservation services to ABC Travel Agency.
		As part of the contract between Zeus and ABC, ABC shall pay Zeus $500 each
		month for use of the reservation service. If ABC books 100 trips each month
		using Zeus' reservation service, then Zeus will give ABC a $500 discount on the
		monthly fee. If ABC is eligible for the discount, Zeus may deduct $500 from its
		gross receipts.
As part of the reservation service, Zeus provides ABC with a tangible
		personal property such as a computer and software. The computer, software, and
		other tangible personal property are integral components to the reservation
		service provided by Zeus. Zeus is liable for use tax on the computer and other
		tangible personal property provided to
		ABC.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:89 - Professional employer organization - Definition of co-employment relationship

Current through Register Vol. 51, page 10, July 15, 2024
A co-employment relationship results from a contract between a
	 professional employer organization and a client company. In order for a
	 co-employment relationship to exist, the contract must stipulate that:
(1) The professional employer organization
  assumes the responsibilities listed in this subdivision, including the payment
  of wages, salaries, payroll taxes, payroll deductions, workers compensation
  costs, insurance premiums, welfare benefits, and retirement benefits, and
  preparing and filing necessary tax returns and other documents as required by
  state or federal law;
(2) The
  client company must be the employer to any existing employees prior to the
  contractual relationship with the professional employment
  organization;
(3) The client
  company retains primary control over the hiring, firing, wage rates, salary
  increases, training, and directing the day-to-day activities of the
  co-employees;
(4) If the
  contractual relationship between the professional employer organization and the
  client company is terminated, then the co-employees' employment with the
  professional employer organization is also terminated;
(5) If a co-employee leaves the employment of
  the client company, that co-employee's employment is terminated with the
  professional employer organization; and
(6) The professional employment organization
  does not manage or direct the operation of the client company's
  business.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-97.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:89.01 - Application for a professional employer organization permit

Current through Register Vol. 51, page 10, July 15, 2024
Each professional employer organization, doing business in South
	 Dakota, must be approved by the Department as a professional employer
	 organization, as defined in SDCL
	 10-45-97 and §
									64:06:02:89. The professional
	 employer organization must apply in writing to the secretary on a form provided
	 by the secretary. The form shall contain the applicant's name and address and
	 client's name and address. A copy of the contract between the professional
	 employer organization and the client must be filed with the form.
If a professional employer organization does not meet the
	 qualifications of SDCL
	 10-45-97 and §
									64:06:02:89 the organization will
	 be required to pay sales tax on all fees charged between the organization and
	 the client with no deduction for actual disbursements, including appropriate
	 reserves, for the wages, salaries, payroll taxes, payroll deductions, workers'
	 compensation costs, insurance premiums, welfare benefits, retirement benefits,
	 and other employee benefits of its co-employees, unless otherwise exempt
	 pursuant to SDCL chapter 10-45.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-96,
		10-45-97.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:91 - Default sourcing rule for telecommunications services

Current through Register Vol. 51, page 10, July 15, 2024
Except for the telecommunications services listed in §
									64:06:02:92, the sale of
	 telecommunications service sold on a call-by-call basis shall be sourced to
	 each level of taxing jurisdiction where the call originates and terminates in
	 that jurisdiction or each level of taxing jurisdiction where the call either
	 originates or terminates and in which the service address is also located. A
	 sale of telecommunications service sold on a basis other than a call-by-call
	 basis, is sourced to the customer's place of primary use.
General Authority:
SDCL
		10-45-108.
Law Implemented:
SDCL
		10-45-108.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:92 - Rules for sourcing specific telecommunications services

Current through Register Vol. 51, page 10, July 15, 2024
The sales of these telecommunications services shall be sourced to each
	 level of taxing jurisdiction as follows:
(1) A sale of mobile telecommunications
  service, other than air-to-ground radiotelephone service and prepaid calling
  service, is sourced to the customer's place of primary use as required by Pub. L. No. 106-252 (Mobile Telecommunications Sourcing Act) (July 28,
  2000);
(2) A sale of post-paid
  calling service is sourced to the origination point of the telecommunications
  signal first identified by either the seller's telecommunications system, or
  information received by the seller from its service provider, where the system
  used to transport such signals is not that of the seller;
(3) A sale of prepaid calling service or a
  sale of a prepaid wireless calling service is sourced as tangible personal
  property. However, in the case of a sale of a prepaid wireless calling service,
  the seller may source the sale to the location associated with the mobile
  telephone number;
(4) A sale of
  private communication service is sourced as follows:
(a) Service for a separate charge related to
  a customer channel termination point is sourced to each level of jurisdiction
  in which such customer channel termination point is located;
(b) Service where all customer channel
  termination points are located entirely within one jurisdiction or levels of
  jurisdiction is sourced in such jurisdiction in which the customer channel
  termination points are located;
(c)
  Service for segments of a channel between two customer channel termination
  points located in different jurisdictions when each segment is separately
  charged, is sourced 50% in each level of jurisdiction in which the customer
  channel termination points are located;
(d) Service for segments of a channel located
  in more than one jurisdiction or levels of jurisdiction and each segment is not
  separately billed, is sourced in each jurisdiction based on the percentage
  determined by dividing the number of customer channel termination points in
  such jurisdiction by the total number of customer channel termination
  points;
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:93 - Exemption of continuing education programs

Current through Register Vol. 51, page 10, July 15, 2024
The sales tax exemption for continuing education programs in SDCL
	 10-45-12.1 applies only to
	 instructional classes approved by the governing board of an occupation with
	 continuing education requirements. Nonmembers of the occupation who attend the
	 class are not exempt from sales tax.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-4.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:94 - Repairs to rental inventory

Current through Register Vol. 51, page 10, July 15, 2024
The gross receipts for parts, repairs, maintenance items, and
	 maintenance services on rental inventory are subject to sales or use
	 tax.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-1.5,
		10-45-20.6.