64:06:01:63.  General sourcing rules. The retail sale, excluding lease or rental, of a product shall be sourced as follows:

          (1)  If the product is received by the purchaser at a business location of the seller, the sale is sourced to that business location;

          (2)  If subdivision (1) does not apply, the sale is sourced to the location where received by the purchaser, or the purchaser's donee, if known by the seller;

          (3)  If subdivision (1) or (2) does not apply, the sale is sourced to the address for the purchaser in the business records of the seller that are maintained in the ordinary course of the seller's business, provided that the use of this address does not constitute bad faith;

          (4)  If subdivision (1), (2), or (3) does not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, provided that use of this address does not constitute bad faith; and

          (5)  If subdivision (1), (2), (3), or (4) does not apply, or the seller is without sufficient information to apply any of the subdivisions, then the sale is sourced to the address (disregarding any location that merely provided the electronic transfer of the product sold) from which:

               (a)  Tangible personal property was shipped;

               (b)  The product transferred electronically was first available for transmission by the seller; or

               (c)  The service was provided.

          Source: 29 SDR 177, effective July 2, 2003; 35 SDR 48, effective September 8, 2008.

          General Authority: SDCL 10-45-108.

          Law Implemented: SDCL 10-45-108.