64:06:02:38. Garage and service stations. 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.
Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995; 29 SDR 177, effective July 2, 2003.
General Authority:SDCL 10-45-47.1(3).
Law Implemented:SDCL 10-45-5.
64:06:02:38.01. Tax on towing services. State sales tax and municipal sales tax on a towing service shall be determined by the destination of the vehicle towed.
Source: 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995.
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.
