64:06:01:03. Bad debt deduction.Repealed.
Source: SL 1975, ch 16, § 1; 2 SDR 40, effective December 8, 1975; 5 SDR 60, effective January 25, 1979; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995; repealed, 28 SDR 178, effective July 1, 2002.
64:06:01:03.01. Bad checks. A check which is returned unpaid because of nonsufficient funds (NSF) or no account and which is not collected by the retailer may be taken as a bad debt deduction, or may be considered a reduction in gross receipts.
Source: 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995; 28 SDR 178, effective July 1, 2002; 29 SDR 177, effective July 1, 2003; 32 SDR 225, effective July 3, 2006; 33 SDR 226, effective June 27, 2007.
General Authority: SDCL 10-45-47.1(3), 10-45D-13(3), 10-46E-11(2), 10-52A-7(3).
Law Implemented: SDCL 10-45-1.14, 10-45-30, 10-45D-2, 10-46E-8, 10-52A-1.1.
64:06:01:03.02. Collection of a previously deducted bad debt or bad check. If a previously deducted bad debt is collected or a check that was returned because of nonsufficient funds (NSF) or no account and not included as part of gross receipts is collected, the tax on the amount collected must be paid and reported on the return filed for the period in which the collection is made. For the purposes of reporting a payment received on a previously claimed bad debt, any payments made on such debt or account are applied first proportionally to the taxable price of the property or service and the sales tax thereon, and secondly to interest, service charges, and any other charges. No deductions for collection expenses are permitted. If a bad debt is sold to a collection agency, only the amount received may be included on the next sales tax return.
Source: 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005.
General Authority: SDCL 10-45-47.1(2).
Law Implemented: SDCL 10-45-30.
