64:06:02:03.01.  Advertising payments. Gross receipts received by a retailer as a cost share or a reimbursement for purchases of exempt advertising services made by the retailer are not subject to sales tax if:

          (1)  The gross receipts are paid by a manufacturer or supplier to the retailer for including the manufacturer's or supplier's identity in the retailer's advertisement;

          (2)  The retailer denotes the gross receipts as a cost share or reimbursement for exempt advertising services; and

          (3)  The retailer has documentation verifying that the gross receipts were received as a cost share or reimbursement for a specific exempt advertising service purchased by the retailer.

          Source: 24 SDR 97, effective January 25, 1998.

          General Authority:SDCL 10-45-47.1.

          Law Implemented:SDCL 10-45-2, 10-45-12.1, 10-45-20.