FOR AN ACT ENTITLED, An Act to  exempt from sales tax certain contract services provided to agricultural producers by an agent of a parent company through a local contracting entity and certain employee expense reimbursement provided by an agricultural cooperative.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

     There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts from the sale of services rendered by a parent company to a local cooperative, if the local cooperative is a local contracting entity, for the purpose of paying for the services of an agent who meets with agricultural producers promoting, educating, and providing technical assistance and information on the parent company's products which are sold through a local contracting entity.
     Section  2.  That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

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     There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts from employee expense reimbursement provided by an agricultural cooperative to a company, if the agricultural cooperative owns at least twenty- five percent of such company.