An Act to revise certain provisions regarding the use of exemption certificates.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 10-45-61.1 be AMENDED:

10-45-61.1. Exemption certificate--Timing--Alternative Information.

Notwithstanding the provisions of §§ 10-45-61, 10-59-3, and 10-59-7, if the seller has not obtained an exemption certificate or all relevant data elements for an exemption certificates certificate, the seller may, within one hundred twenty days subsequent to a request for substantiation, either prove that the transaction was not subject to tax by other means or obtain a by the Department of Revenue, do either of the following:

(1) Obtain a fully completed exemption certificate from the purchaser, taken in good faith which means that the seller obtained a certificate that claims an exemption that:

(a) Was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;

(b) May be applicable to the item being purchased; and

(c) Is reasonable for the purchaser's type of business; or

(2) Obtain other information establishing that the transaction was not subject to the tax.

Any exemption certificate presented after one hundred twenty days need not be considered by the department.