<html> <head> <title>Rule 64:06:02:03.01 Advertising payments.</title> <META NAME="Keywords" Content="Administrative Rules 64:06:02:03.01"> <META NAME="Description" Content="Administrative Rules 64:06:02:03.01 Advertising payments."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64:06:02:03.01.&nbsp;&nbsp;Advertising payments.</b> 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:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;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;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;The retailer denotes the gross receipts as a cost share or reimbursement for exempt advertising services; and</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;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.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 24 SDR 97, effective January 25, 1998.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-47.1">10-45-47.1.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-2">10-45-2</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-12.1">10-45-12.1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-20">10-45-20.</A></p> </div> </body> </html>