reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:98 - Application of municipal gross receipts tax to fitness clubs

Current through Register Vol. 51, page 10, July 15, 2024
For the purpose of applying the provisions of SDCL chapter 10-52 A, a
	 pass or membership to a fitness club is not considered an admission to a place
	 of amusement or athletic event.
General Authority:
SDCL
		10-52A-7(3).
Law Implemented:
SDCL
		10-52A-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:02 - Services - Interpretive rules › Section 64:06:02:99 - Application of tourism tax to fitness clubs

Current through Register Vol. 51, page 10, July 15, 2024
For the purpose of applying the provisions of SDCL subdivision
	 10-45D-1(4), a pass or membership to a fitness club is not considered a
	 recreational service or rental of recreational equipment.
General Authority:
SDCL
		10-45D-13(3).
Law Implemented:
SDCL
		10-45D-1(4).
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:00 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Agricultural land," any land as defined
  in SDCL 10-6-31.3;
(2) "Agricultural products," all those
  products commonly known and referred to as food and fiber, including dairy
  products, livestock, growing crops, and the like, which are produced, raised or
  grown upon agricultural land;
(3)
  "Nonagricultural purpose," the purchase and use of a farm machine, attachment
  unit, or irrigation equipment for any purpose other than for an agricultural
  purpose;
(4) "Attachment unit," any
  part or combination of parts having an independent function, other than a
  replacement part or parts, which when attached or affixed to a farm machine,
  motor vehicle, or other piece of agricultural equipment is used for
  agricultural purposes;
(5)
  "Newspaper," a publication intended for general circulation published regularly
  at daily or weekly intervals, consisting of printed sheets without substantial
  binding bearing a date of issue and numbered consecutively, not devoted to the
  expression of opinions, but to intelligence of current events and news of
  general interest and which routinely reports a myriad of topics so that it
  appeals to a wide spectrum of the general public. Publications generally
  referred to as magazines are not newspapers.
General Authority:
SDCL
		10-45-47.1(3),
		10-46E-11(3).
Law Implemented:
SDCL
		10-45-3.4,
		10-45-15,
		10-45-15.1,
		10-45-16,
		10-45-16.1,
		10-45-19,
		10-46E-8.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:01 - Agricultural products

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from sales of farm products by a farmer for resale are
	 not subject to sales tax. If a farmer holds out to the public as a seller of
	 farm products and makes regular sales to consumers, the farmer is in a retail
	 business and must have a sales tax license and report the tax on such sales. A
	 farmer making occasional sales of farm products to consumers is not required to
	 have a sales tax license and report sales tax on the sales.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-18.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:04 - Alcoholic beverages

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from all sales at retail of alcoholic beverages, as
	 defined by SDCL
	 35-1-1(4),
	 whether mixed or unmixed at the time of sale or thereafter and whether sold for
	 consumption on the premises or through off-sale outlets for consumption off the
	 premises, are subject to sales tax and the municipal gross receipts
	 tax.
General Authority:
SDCL
		10-45-47.1(3),
		10-52A-7(3).
Law Implemented:
SDCL
		10-45-2,
		10-52A-6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:06 - Articles made to order

Current through Register Vol. 51, page 10, July 15, 2024
If manufacturers, fabricators, or retailers agree for a fixed price to
	 furnish material and fabricate articles of tangible personal property for sale
	 to a final user or consumer, the total receipts from the sale of the articles
	 are subject to the sales tax. The manufacturers, fabricators or retailers may
	 not deduct labor or service costs of fabrication or production from the sales
	 tax base even though these charges may be billed separately to customers apart
	 from charges for materials.
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 64:06:03 - Products - Interpretive rules › Section 64:06:03:09 - Containers

Current through Register Vol. 51, page 10, July 15, 2024
A container is an article whose major function is as a receptacle or
	 flexible covering for shipment or transportation of goods. Items such as molds,
	 dies, or castings, the chief purpose of which is for use in a manufacturing or
	 fabricating process rather than for shipping or transportation, are not
	 containers.
Containers are taxable as follows:
(1) Containers and similar articles, such as
  drums, cartons, pallets, and shipping cases, used or consumed by manufacturers,
  processors, or fabricators are not subject to sales or use tax. A manufacturer,
  processor, or fabricator is one who produces, whether by hand or machinery, a
  new or different article or product from raw or prepared materials. To
  constitute manufacturing, processing, or fabricating, there must be some
  substantial or significant change in the basic materials;
(2) Sales of certain containers to retailers
  are exempt from tax. The retailer exemption applies only to paper and plastic
  bags, wrapping paper, twine, tape, and similar articles which are used to hold
  other property sold by the retailer which is subject to sales or use tax. The
  containers must be supplied free as a convenience to the customer;
(3) Gross receipts from sales of containers
  to retail customers are subject to tax. If title to the container passes to the
  customer, the receipts are subject to tax even when the receipt is called a
  deposit. Passage of title to the container is indicated by the following:
(a) Containers are not identified to a
  particular retailer by a logo, stamp, inventory number, or other
  means;
(b) The retailer will refund
  the deposit on any container returned regardless of where the container was
  obtained;
(c) The retailer makes no
  effort to identify or keep records on which customers have their
  containers;
(d) The retailer makes
  no effort, such as a phone call or letter, to get the container back if it is
  not returned; and
(e) An invoice,
  sales slip, or other document may contain language showing passage of
  title.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:11 - REA and RTA cooperatives

Current through Register Vol. 51, page 10, July 15, 2024
Rural electric cooperatives and mutual or cooperative telephone
	 companies must pay sales or use taxes on purchases made by them for final use
	 or consumption. These organizations must also collect and remit sales tax on
	 all retail sales made by them. Electrical supplies purchased by rural electric
	 cooperatives, mutual or cooperative telephone companies, or other centrally
	 assessed utilities and specifically intended for use outside the city limits
	 are not subject to municipal sales or use tax when stored within the city
	 limits.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1,
		10-52-4.
Law Implemented:
SDCL
		10-45-2,
		10-46-2,
		10-52-2,
		10-52-4.
Declaratory Ruling:
A company which generates
		electricity for resale to local cooperatives must pay excise tax on the total
		gross receipts from sales within the state whether the power is delivered over
		facilities which it owns or over facilities owned by others. Secretary of
		Revenue Declaratory Ruling No.
		77-11.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:12 - Stock used for demonstration or personal use

Current through Register Vol. 51, page 10, July 15, 2024
Items temporarily withdrawn from stock for demonstration purposes are
	 not subject to tax at the time of withdrawal from stock. When such items are
	 sold at retail, the tax applies.
Property withdrawn for purposes other than demonstration, such as for
	 personal use or other commercial use, is subject to the use tax when withdrawn.
	 If it is later sold at retail, it is subject to sales tax on the sale price
	 without any deduction for the use tax paid.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-46-2,
		10-46-4.
Examples:
(1) L, a lawn mower dealer, uses a mower from stock to mow the lawn
		around the establishment. L must pay use tax on the use of this mower. When the
		mower is later resold, L must collect and remit sales tax on the price of the
		mower.
(2) A customer wants to buy a lawn mower from L but wants to see
		several models. L demonstrates each mower by letting the customer mow the grass
		around L's establishment. The customer decides on the model and purchases it.
		Sales tax is due on the sale of that mower, but no tax is due on the use of the
		other mowers the customer tried out before purchasing the chosen
		mower.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:13 - Electric energy and natural or artificial gas

Current through Register Vol. 51, page 10, July 15, 2024
The sale of electric energy and natural or artificial gas is taxable if
	 sold to consumers or users. Sales to other distributing companies or
	 municipalities who are resellers are not taxable. Sales by municipalities are
	 taxable. Sales of materials, supplies, and equipment to utility companies are
	 subject to tax. Charges for connection or reconnection of the service are
	 taxable.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-4,
		10-45-5.2,
		10-45-6.
Declaratory Ruling:
Heating fuel used to maintain soil
		and atmospheric temperature in greenhouse for production of bedding and
		ornamental plants is not a component part of the plants produced, and is
		subject to the sales tax. Secretary of Revenue Declaratory Ruling
		81-7.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:15 - Farm machinery

Current through Register Vol. 51, page 10, July 15, 2024
A farm machine is a mechanical unit purchased and used directly and
	 principally for agricultural purposes and includes those items commonly and
	 usually referred to as farm machinery and attachment units. Farm machinery does
	 not include motor vehicles or equipment otherwise licensed or taxed by the
	 state of South Dakota.
Tools, shop equipment, grain bins, feed bunks, fencing materials,
	 snowmobiles, and lawn mowers are not farm machines. Grain storage facilities,
	 barn cleaners, milking systems, and automatic feeding systems which are
	 installed and become part of real property are not farm machines and the
	 installation of these systems is subject to contractors' excise tax under
	 10-46A.
General Authority:
SDCL
		10-45-47.1(3),
		10-46E-11(3).
Law Implemented:
SDCL
		10-45-3.4,
		10-46E-8.
Examples of farm machinery:
Machinery for dairy farms;
		machinery for the preparation, seeding, or cultivation of soil for growing
		agricultural crops; and machinery for harvesting and threshing of agricultural
		products.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:16 and 64:06:03:17 - Farm machines eligible for special tax - Exceptions. Repealed

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-3,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:18 - Furs and furriers

Current through Register Vol. 51, page 10, July 15, 2024
Sales of furs to customers are taxable. Receipts from repairing,
	 altering, or cleaning fur garments are subject to sales tax. Charges for
	 storing furs are taxable.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-4,
		10-45-5,
		10-45-5.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:19 - Irrigation equipment

Current through Register Vol. 51, page 10, July 15, 2024
The term irrigation equipment includes pumps, pipe, fittings, valves,
	 sprinklers, and other equipment necessary to the operation of an irrigation
	 system.
General Authority:
SDCL
		10-45-47.1(3),
		10-46E-11(3).
Law Implemented:
SDCL
		10-45-3.4,
		10-46E-8.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:20 - Ice

Current through Register Vol. 51, page 10, July 15, 2024
Sales of ice include sales for household use as well as for
	 refrigeration purposes. All sales of ice are taxable unless the ice becomes an
	 ingredient part of food or drink to be sold at retail or unless the ice is sold
	 for resale.
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 64:06:03 - Products - Interpretive rules › Section 64:06:03:21 - Labels and name plates

Current through Register Vol. 51, page 10, July 15, 2024
Sales of labels and name plates are taxable if made to a consumer or
	 user. Price labels, content labels, and description labels sold to
	 manufacturers or retailers for attachment to property to be sold at retail are
	 not subject to sales or use tax.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:22 - Dressed meat

Current through Register Vol. 51, page 10, July 15, 2024
The sale of livestock and live poultry by farmers, feeders, dealers,
	 and produce houses to persons to slaughter for their own use are classed as
	 sales of dressed meat and are subject to sales or use tax.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-18,
		10-46-16.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:22.01 - Household pets

Current through Register Vol. 51, page 10, July 15, 2024
Receipts from the sale of household pets are considered sales of
	 tangible personal property and are taxable.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-18,
		10-46-16.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:23 - Machinery and fixtures sold to manufacturers and other businesses

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from sales of machinery, tools, bolts, and other
	 equipment to a manufacturer, producer, or contractor and gross receipts from
	 sales of furniture, fixtures, supplies, stationary, equipment, appliances,
	 instruments, and tools to stores, shops, business establishments, offices, and
	 professional people for use in carrying on their business or professional
	 activities are taxable. Such sales are to final buyers or ultimate consumers
	 and are not sales for resale. If sales tax is not paid to suppliers at the time
	 of purchase, use tax must be paid directly to the department.
Purchases of tangible personal property or any product transferred
	 electronically which by manufacture, compounding, or fabrication, becomes an
	 integral part of other tangible personal property to be sold ultimately at
	 retail are not subject to sales or use tax. Sellers of such property must
	 obtain an exemption certificate.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-45-61,
		10-46-2.2,
		10-46-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:23.01 - Determination of age of tangible personal property

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of the exemption in SDCL
	 10-46-3, tangible personal
	 property or any product transferred electronically must be more than seven
	 years old as determined by its date of manufacture, if documented, or by the
	 date of the purchase by the person bringing it into this state. In addition,
	 the tangible personal property or any product transferred electronically must
	 have been purchased originally for use in another state by the person
	 subsequently bringing it into this state for the person's
	 use.
General Authority:
SDCL
		10-46-35.1(3).
Law Implemented:
SDCL
		10-46-3.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:24 - Items consumed in a manufacturing process

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from sales to manufacturers, producers, or processors,
	 including flour mills, bakeries, or creameries, any product transferred
	 electronically, of tangible personal property of any kind, including gas, fuel,
	 electricity, tools, and other property which is used by such manufacturers in
	 the manufacturing process and which does not become an ingredient or component
	 part of the tangible personal property manufactured, produced, or processed,
	 are taxable. The manufacturer, producer, or processor is the final buyer or
	 ultimate consumer of the tangible personal property and does not purchase it
	 for resale. The tangible personal property and any product transferred
	 electronically so purchased is not purchased by the manufacturer for the
	 purpose of resale but for the operation of the business. If sales tax is not
	 paid to a licensed South Dakota supplier, use tax must be paid to the
	 state.
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.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2.4,
		10-46-2,
		10-46-2.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:25 - Component parts of manufactured items

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from sales to manufacturers, producers, or processors of
	 tangible personal property or any product transferred electronically which
	 enters into and becomes an ingredient or component part of the tangible
	 personal property which they manufacture, produce, or process are not taxable.
	 The fact that the article manufactured, produced, or processed is in a
	 different form or of a different character is immaterial.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-46-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:26 - Meals

Current through Register Vol. 51, page 10, July 15, 2024
Receipts from meals furnished by restaurants, hotels, and boarding
	 houses are taxable. If meals are furnished by proprietors of cafes,
	 restaurants, or boarding houses to employees and a separate charge is made,
	 sales tax must be paid on the receipts. If the employer furnishes meals to
	 employees as part consideration for employment, the restaurant, cafe, or
	 boarding house is liable for the state and municipal use tax upon the cost of
	 the meals so furnished to the employees. This tax includes the applicable
	 municipal and state sales and use taxes.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3),
		10-52-4,
		10-52A-7(3).
Law Implemented:
SDCL
		10-45-2,
		10-46-2,
		10-52-2,
		10-52-4,
		10-52A-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:27 - Memorial dealers

Current through Register Vol. 51, page 10, July 15, 2024
Memorial dealers are retailers of tombstones, markers, other memorials,
	 and materials, such as cement, used in setting the memorial in the
	 cemetery.
If memorial dealers agree to furnish a memorial and set it in the
	 cemetery, tax applies to the entire amount charged. No deduction may be made
	 for charges for installation, cutting, shaping, polishing, or lettering the
	 memorial or for transporting the memorial to the cemetery.
If cemeteries construct foundations for memorials and collect the
	 charges for the foundations from memorial dealers, the memorial dealers are the
	 retailers of the foundations. The memorial dealers shall collect the charges
	 for the foundations or the materials used to make the foundations from their
	 customers or shall include the charges for the foundations in their charges for
	 furnishing the memorials. The memorial dealers shall pay the tax to the state
	 on the charges made for the foundations as well as on the charges for the
	 memorials. In constructing the foundations the cemeteries are acting as the
	 agents of the memorial dealers.
If cemeteries collect charges for foundations directly from the
	 customers of the memorial dealers, the cemeteries are the retailers of the
	 foundations and shall pay the tax to the state on the charges
	 made.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-4,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:28 - Mining companies

Current through Register Vol. 51, page 10, July 15, 2024
Mining companies are the consumers of all materials and supplies
	 purchased for their mining operations except property which becomes a component
	 part of the product produced for resale. As consumers, the mining companies
	 must pay sales tax to suppliers or use tax to the state.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-46-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:32 - Newsprint and printing supplies

Current through Register Vol. 51, page 10, July 15, 2024
The purchase of raw newspaper is exempt. All other purchases of
	 materials used in printing, such as type and printing equipment, are subject to
	 sales or use tax, except such items which are purchased for
	 resale.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-46-9.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:33 - Publications and inserts

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from the sale of all publications are subject to the
	 retail occupational sales tax. Sales or use tax applies to charges for printing
	 advertising inserts prepared predominantly for a single advertiser which are
	 inserted as a separate section in the newspaper, shopper's guide, or
	 publication. Advertising printed for a single advertiser is considered an
	 integral part of the newspaper or shoppers' guide if it is printed on the same
	 paper stock and paper size as the newspaper or shopper's guide, it is folded in
	 the same manner as and sequentially numbered with the rest of the newspaper or
	 shopper's guide, and it is distributed with the newspaper or shoppers'
	 guide
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-12.1,
		10-45-14.2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:35 - Premiums and gifts

Current through Register Vol. 51, page 10, July 15, 2024
Donors of tangible personal property or any product transferred
	 electronically known as premiums or gifts are regarded as the consumers of the
	 premiums or gifts, and they must pay sales tax when such items are purchased or
	 use tax when the items are removed from stock or purchased exempt from sales
	 tax. Gross receipts from the sale of goods which are to be given away for
	 advertising purposes are taxable. If goods purchased by a retailer for the
	 purpose of resale are subsequently given away for advertising purposes, the
	 retailer must include, under value of merchandise taken from stock for the
	 retailer's own and family use and use of the retailer's employees, the cost of
	 the goods to the retailer and must pay use tax on the cost of the goods. Those
	 goods given without charge to an institution, organization, or group exempt
	 from this tax are not taxable.
Purchasers of property which is to be awarded as prizes, the winning of
	 which depends upon chance or skill, are regarded as the consumers of the
	 property, and the tax applies to gross receipts from the sale of the property
	 to the purchasers.
The operator of a game of skill or a game of chance is the consumer of
	 the property used in connection with such operations, and the tax applies to
	 gross receipts from sales of tangible personal property and any product
	 transferred electronically to the operator.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-46-2,
		10-46-2.2,
		10-46-15.4.
Example:
A butcher shop donates 50 pounds of beef to the
		Salvation Army for use in its soup kitchen. The beef is not taxable because it
		was given to an exempt
		organization.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:36 - Vendors of property used for premiums, advertising, and prizes

Current through Register Vol. 51, page 10, July 15, 2024
Persons engaged in the business of selling tangible personal property
	 and any product transferred electronically to purchasers who give such property
	 away in the advertising of their business or products, as premiums in
	 connection with the sale of any other property, as prizes, or for any other
	 reason are engaged in the business of selling tangible personal property and
	 products transferred electronically for use or consumption and not for resale.
	 Such vendors must have a retail sales tax license and collect sales tax on all
	 items used for advertising purposes, premiums, or prizes.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-46-2,
		10-46-2.2.
Example:
A bar gives away beer hats to its customers as
		an advertising gimmick. The person selling the hats to the bar must collect and
		remit sales tax on the hats.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:37 - Railway dining cars - Airline dining

Current through Register Vol. 51, page 10, July 15, 2024
The sales of meals, alcoholic beverages, other tangible personal
	 property, or any product transferred electronically on railway trains, club
	 cars, lounge cars, or dining cars and on airplanes being operated through the
	 state of South Dakota, constitute sales at retail, the gross receipts from
	 which are taxable, if the meals, alcoholic beverages, or other tangible
	 personal property are ordered or delivered within the boundary lines of this
	 state. It is immaterial whether or not such meals, alcoholic beverages, other
	 tangible personal property, or any product transferred electronically are
	 consumed within the boundary lines of this state.
General Authority:
SDCL
		10-45-47.1(3),
		10-52A-7(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-52A-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:38 - School lunches

Current through Register Vol. 51, page 10, July 15, 2024
Sales of groceries and supplies to a school for operation of a school
	 lunch program are exempt from sales tax. A school providing lunches to students
	 under the school lunch program is not required to remit tax on receipts from
	 the school lunch program.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-10,
		13-35-3.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:39 - Secondhand stores

Current through Register Vol. 51, page 10, July 15, 2024
Secondhand store operators receiving secondhand merchandise for sale on
	 behalf of some person must collect sales tax on all merchandise that they
	 sell.
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 64:06:03 - Products - Interpretive rules › Section 64:06:03:41 - Vending machines

Current through Register Vol. 51, page 10, July 15, 2024
An operator of vending machines must obtain a sales tax license to
	 engage in the business of selling tangible personal property or any product
	 transferred electronically at retail and must pay the sales tax rate on gross
	 receipts from the operation of such machines. Vending machine owners may
	 determine the average equivalent sales by dividing their total receipts by the
	 percentage of the current tax rate. One license is sufficient for all the
	 machines of one operator.
If the South Dakota sales tax has not been paid to a licensed retailer
	 on the purchase of a vending machine, use tax must be paid on the cost of
	 machines originally purchased for use in South Dakota and on the fair market
	 value of machines not originally purchased for use in this state, but
	 thereafter brought into the state.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-46-2,
		10-46-2.2.
Declaratory Ruling:
Vending machine owners need not pay
		sales tax on total receipts, but may determine the average equivalent sales by
		dividing their total receipts by 1.03. (Opinion issued while sales tax was
		three percent.) Secretary of Revenue Declaratory Ruling No.
		77-17.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:41.01 - Municipal sales tax rate on vending machines

Current through Register Vol. 51, page 10, July 15, 2024
The highest rate of the municipal sales and gross receipts tax applies
	 to all gross receipts of vending machines which sell multiple items which are
	 taxed at different rates unless the vendor maintains records and inventories
	 documenting actual sales by type of item. The municipal sales and gross
	 receipts taxes are in addition to the state sales tax.
General Authority:
SDCL
		10-45-47.1,
		10-52-4,
		10-52A-7(3).
Law Implemented:
SDCL
		10-45-2,
		10-52-2,
		10-52-8,
		10-52A-2.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:43 - Water and gravel haulers

Current through Register Vol. 51, page 10, July 15, 2024
Operators of gravel pits are retailers of gravel subject to tax and the
	 haulers of water, except bulk water for domestic use, are engaged in making
	 taxable sales. When customers take delivery of gravel at the pit or water at
	 the source of supply, the charge is subject to tax. If a customer employs a
	 trucker who is a licensed carrier for hire to haul gravel or water, the seller
	 shall report the tax on the charge for the gravel or water.
If operators of gravel pits or sellers of water deliver with their own
	 truck or employ someone to deliver for them to a place designated by the buyer,
	 the entire charge, including cost of delivery, is subject to sales tax.
If the operator or buyer uses the gravel in making a realty
	 improvement, the gravel is subject to the state sales or use tax upon the
	 greater of the purchase price or the fair market value even if the gravel is
	 furnished by an exempt entity.
General Authority:
SDCL
		10-45-47.1,
		10-46-35.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-19.3,
		10-46-5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:44 - Automotive wholesalers and jobbers - Retail sales

Current through Register Vol. 51, page 10, July 15, 2024
Wholesalers and jobbers of automotive supplies are liable for sales tax
	 on their receipts from sales of auto shop equipment, welding shop equipment,
	 wash rack supplies, hand tools, grinding compounds, sandpaper, wiping rags,
	 brushes, soap, paint remover, tape, and other material and equipment which is
	 not resold by a garage, service station, or body shop or which is consumed by
	 them in rendering their service.
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 64:06:03 - Products - Interpretive rules › Section 64:06:03:45 - Automotive wholesalers and jobbers - Wholesale sales

Current through Register Vol. 51, page 10, July 15, 2024
Wholesalers and jobbers selling automotive parts, paints, lacquers,
	 greases, lubricants, tire patches, cement, and items which become part of a
	 motor vehicle to service stations, garages, or body shops are making wholesale
	 sales, exempt from the sales tax. Such items are considered purchases for
	 resale by the service station, garage, or body shop.
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 64:06:03 - Products - Interpretive rules › Section 64:06:03:46 - Wholesale houses

Current through Register Vol. 51, page 10, July 15, 2024
Sales of tangible personal property or any product transferred
	 electronically for use and consumption by the purchaser are sales at retail and
	 such sales are taxable. Quantity or price of the property sold is immaterial. A
	 transaction is not considered to be wholesale, unless the sale is strictly for
	 the purpose of resale. The seller must obtain an exemption certificate showing
	 the buyer's state tax permit number. If a purchaser from a jobber or wholesale
	 house does not have a sales tax permit, except manufacturers or processors, the
	 sale is presumed to be a retail transaction and taxable.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2,
		10-45-2.4,
		10-46-2,
		10-46-2.2,
		10-46-4.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:48 - Mounted agricultural equipment

Current through Register Vol. 51, page 10, July 15, 2024
Any equipment such as a power feed box, mixer, manure spreaders, stack
	 mover, grinder, and fertilizer spreader, if mounted or affixed to a motor
	 vehicle, machine or other piece of agricultural equipment which is licensed,
	 registered or taxed pursuant to SDCL chapter 32-5, is considered a farm machine
	 if used exclusively for agricultural purposes.
A truck box and hoist is not an attachment.
General Authority:
SDCL
		10-45-47.1(3),
		10-46E-11(3).
Law Implemented:
SDCL
		10-45-3.4,
		10-46E-8.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:49 - Pesticides and fertilizer

Current through Register Vol. 51, page 10, July 15, 2024
In addition to other statutory requirements to qualify as a fertilizer
	 or a pesticide, which includes herbicides, rodenticides, fungicides, fumigants,
	 and insecticides, a material must be registered with and approved by the
	 Department of Agriculture under the provisions of SDCL chapter 38-19, 38-20 A,
	 or 39-14.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-16,
		10-45-16.1,
		10-46-17.5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:52 - Restaurant supplies

Current through Register Vol. 51, page 10, July 15, 2024
Restaurants where the public is invited to eat on the premises or to
	 purchase prepared food and carry it out for consumption elsewhere are consumers
	 of items such as paper napkins, drinking straws, and plastic tableware
	 furnished to patrons. Retailers selling items of this nature to restaurants and
	 similar establishments are subject to sales tax on the gross receipts from the
	 sale of such items.
Containers for food or beverages such as paper cups, drinking glass
	 covers, disposable food trays, wrappers, and plastic bowls which hold tangible
	 personal property whose sales are subject to sales tax are considered a part of
	 the taxable sale. Persons selling these containers to retailers are not liable
	 for sales tax on these items.
General Authority:
SDCL
		10-45-47.1.
Law Implemented:
SDCL
		10-45-2,
		10-45-14.5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:53 - Off-road vehicles

Current through Register Vol. 51, page 10, July 15, 2024
Off-road vehicles are vehicles designed primarily to be operated on
	 land other than a highway and include all-terrain vehicles, dune buggies, and
	 any vehicle whose manufacturer's statement of origin (MSO) or manufacturer's
	 certificate of origin (MCO) states that the vehicle is not for highway use.
	 Although off-road vehicles are required to be titled by SDCL
	 32-20-12, receipts from sales of
	 these vehicles are subject to sales tax rather than the motor vehicle excise
	 tax.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-3,
		32-5B-2,
		32-20-12.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:55 - Newspapers subject to sales tax and use tax

Current through Register Vol. 51, page 10, July 15, 2024
Gross receipts from the business of selling newspapers is subject to
	 sales tax. A business which provides newspapers at no charge is deemed to be a
	 user and consumer of the newspapers and is liable for use tax based upon the
	 total cost of the newspapers. The total cost of a newspaper is the
	 manufacturing cost of producing the newspaper after the camera-ready
	 stage.
Newspaper print used in the printing and publishing of newspapers is
	 exempt from use tax. To qualify for the exemption, the publication must fall
	 within the definition of a newspaper set forth in subdivision
	 64:06:03:00(6).
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
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 64:06:03 - Products - Interpretive rules › Section 64:06:03:56 - Maintenance items are not replacement parts - Definition of maintenance items

Current through Register Vol. 51, page 10, July 15, 2024
Maintenance items are not exempt as replacement parts pursuant to SDCL
	 10-45-20.6 and
	 10-46-9.6. Maintenance items
	 include oils, filters, antifreeze, windshield wiper fluid, and other
	 fluids.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-20.6,
		10-46-9.6.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:57 - Drugs - Definition

Current through Register Vol. 51, page 10, July 15, 2024
The term, drug, as used in SDCL
	 10-45-14.10 and
	 10-46-15.5 means a compound,
	 substance, or preparation, and any component of a compound, substance, or
	 preparation, other than food and food ingredients, dietary supplements, or
	 alcoholic beverages that are:
(1)
  Defined as a drug as set forth in SDCL
  34-20B-2(1);
(2) Intended for use in the diagnosis, cure,
  mitigation, treatment, or prevention of disease; or
(3) Intended to affect the structure or any
  function of the body.
General Authority:
SDCL
		10-45-47.1(3),
		10-45-14.10,
		10-46-15.5.
Law Implemented:
SDCL
		10-45-14.10,
		10-46-15.5.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:58 - Durable medical equipment - Definition

Current through Register Vol. 51, page 10, July 15, 2024
The term, durable medical equipment, as used in SDCL
	 10-45-14.11 and
	 10-46-15.6, means equipment
	 including repair and replacement parts for same, but does not include mobility
	 enhancing equipment, which:
(1) Can
  withstand repeated use;
(2) Is
  primarily and customarily used to serve a medical purpose;
(3) Generally is not useful to a person in
  the absence of illness or injury; and
(4) Is not worn in or on the body.
Durable medical equipment does not include any repair and replacement
	 part which is for single patient use only.
General Authority:
SDCL
		10-45-47.1(3),
		10-45-14.11,
		10-46-15.6.
Law Implemented:
SDCL
		10-45-14.11,
		10-46-15.6.
Examples:
Bath and shower chairs, commode chair, blood
		pressure gauges, feeding pumps, hospital beds. Durable medical equipment does
		not include exercise equipment or hot
		tubs.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:59 - Mobility enhancing equipment - Definition

Current through Register Vol. 51, page 10, July 15, 2024
The term, mobility enhancing equipment, as used in SDCL
	 10-45-14.11 and
	 10-46-15.6, means equipment
	 including repair and replacement parts to same, but does not include durable
	 medical equipment, which:
(1) Is
  primarily and customarily used to provide or increase the ability to move from
  one place to another and which is appropriate for use either in a home or a
  motor vehicle;
(2) Is not generally
  used by persons with normal mobility; and
(3) Does not include any motor vehicle or
  equipment on a motor vehicle normally provided by a motor vehicle
  manufacturer.
General Authority:
SDCL
		10-45-47.1(3),
		10-45-14.11,
		10-46-15.6.
Law Implemented:
SDCL
		10-45-14.11,
		10-46-15.6.
Examples:
Canes, crutches, motorized carts, stair lifts,
		walkers, wheelchairs, lift and controls specifically added to motor
		vehicles.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:60 - Prosthetic device - Definition

Current through Register Vol. 51, page 10, July 15, 2024
The term, prosthetic device, as used in SDCL
	 10-45-14.11 and
	 10-46-15.6, means a replacement,
	 corrective, or supportive device, including repair and replacement parts for
	 same, worn on or in the body to:
(1)
  Artificially replace a missing portion of the body;
(2) Prevent or correct physical deformity or
  malfunction; or
(3) Support a weak
  or deformed portion of the body.
General Authority:
SDCL
		10-45-47.1,
		10-45-14.11,
		10-46-15.6.
Law Implemented:
SDCL
		10-45-14.11,
		10-46-15.6.
Examples:
Corrective eyeglasses, contact lenses, hearing
		aids, dental prosthesis, artificial arms and legs, braces, heart valves,
		pacemakers, and artificial eyes.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:61 - Prescriptions- Definition

Current through Register Vol. 51, page 10, July 15, 2024
The term, prescription, as used in SDCL chapters 10-45 and 10-46 means
	 an order, formula, or recipe issued in any form of oral, written, electronic,
	 or other means of transmission by a physician, chiropractor, optometrist,
	 dentist, podiatrist, or audiologist.
General Authority:
SDCL
		10-45-47.1(3).
Law Implemented:
SDCL
		10-45-14.10,
		10-45-14.11,
		10-45-14.12,
		10-46-15.5,
		10-46-15.6,
		10-46-15.7.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:62 - Medical device - Component, part, or accessory

Current through Register Vol. 51, page 10, July 15, 2024
A medical device as defined in SDCL
	 10-45-14.12 and
	 10-46-15.7 includes a component,
	 part, or accessory to mobility enhancing equipment, durable medical equipment,
	 a prosthetic device or another medical device.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-14.12,
		10-46-15.7.
Example:
Hemodialysis tubing, oxygen supply tubing,
		perfusion packs and x-ray film are components, parts or accessories of mobility
		enhancing equipment, durable medical equipment, or prosthetic devices and are
		exempt from sales and use tax.
South Dakota Administrative Rules › Title 64 - REVENUE › Article 64:06 - Sales tax › Chapter 64:06:03 - Products - Interpretive rules › Section 64:06:03:63 - Permanent foundation - Definition

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of determining whether a sectional home is subject to the
	 provisions of SDCL
	 10-45-2.1 and
	 10-46-5.1, a permanent foundation
	 is a continuous perimeter weight bearing foundation supporting a sectional home
	 and engineered to resist the imposition of external forces such as rain, wind,
	 and snow. The perimeter foundation walls shall be supported by footings placed
	 below the normal frost line. The sectional home shall be attached and
	 physically secured to the foundation.
General Authority:
SDCL
		10-45-47.1(3),
		10-46-35.1(3).
Law Implemented:
SDCL
		10-45-2.1,
		10-46-5.1.