<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns="http://www.w3.org/TR/REC-html40"> <head> <title>Rule 64:07:01:02 Gross receipts explained.</title> <META NAME="Keywords" Content="Administrative Rules 64:07:01:02"> <META NAME="Description" Content="Administrative Rules 64:07:01:02 Gross receipts explained."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=ProgId content=Word.Document> <meta name=Generator content="Microsoft Word 10"> <meta name=Originator content="Microsoft Word 10"> <link rel=File-List href="6407010000200d_files/filelist.xml"> <!--[if gte mso 9]><xml> <o:DocumentProperties> <o:Author>lrpr14533</o:Author> <o:LastAuthor>lrpr14296</o:LastAuthor> <o:Revision>2</o:Revision> <o:TotalTime>1</o:TotalTime> <o:LastPrinted>2007-06-25T18:30:00Z</o:LastPrinted> <o:Created>2007-06-27T13:21:00Z</o:Created> <o:LastSaved>2007-06-27T13:21:00Z</o:LastSaved> <o:Pages>1</o:Pages> <o:Words>207</o:Words> <o:Characters>1182</o:Characters> <o:Company>State of South Dakota</o:Company> <o:Lines>9</o:Lines> <o:Paragraphs>2</o:Paragraphs> <o:CharactersWithSpaces>1387</o:CharactersWithSpaces> <o:Version>10.6830</o:Version> </o:DocumentProperties> </xml><![endif]--><!--[if gte mso 9]><xml> <w:WordDocument> <w:SpellingState>Clean</w:SpellingState> <w:GrammarState>Clean</w:GrammarState> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> </w:Compatibility> <w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--> <style> <!-- /* Font Definitions */ @font-face {font-family:Tahoma; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:1627421319 -2147483648 8 0 66047 0;} @font-face {font-family:Times; panose-1:2 2 6 3 5 4 5 2 3 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:536902279 -2147483648 8 0 511 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:none; text-autospace:none; font-size:10.0pt; font-family:Times; mso-fareast-font-family:"Times New Roman";} span.GramE {mso-style-name:""; mso-gram-e:yes;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style> <!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--><!--[if gte mso 9]><xml> <o:shapedefaults v:ext="edit" spidmax="1026"/> </xml><![endif]--><!--[if gte mso 9]><xml> <o:shapelayout v:ext="edit"> <o:idmap v:ext="edit" data="1"/> </o:shapelayout></xml><![endif]--> </head> <body lang=EN-US style='tab-interval:.5in'> <div class=Section1> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><span style='mso-tab-count: 1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b>64:07:01:02.<span class=GramE>&nbsp;&nbsp;Gross</span> receipts explained.</b> <span class=GramE>Gross receipts includes</span> the total amount received in consideration of the performance of a realty improvement contract without deductions for any expenses. If a contractor chooses to include the amount of the tax in the contract price, this amount may not be deducted in determining taxable receipts. For purposes of SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-46B">10-46B</A>, gross receipts does not include any internal charges or allocations among or between a parent telecommunications company subject to tax under SDCL chapter 10-33 and any wholly-owned subsidiaries thereof or between two subsidiaries that are both wholly owned by the same parent company if the recipient of the services is a telecommunications company subject to tax under SDCL chapter 10-33.<o:p></o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><o:p>&nbsp;</o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><span style='mso-tab-count: 1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b>Source:</b> 6 SDR 44, effective November 8, 1979; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 33 SDR 226, effective June 27, 2007.<o:p></o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><span style='mso-tab-count: 1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-46A-19">10-46A-19</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-46B-18">10-46B-18.</A><o:p></o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><span style='mso-tab-count: 1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-33-26">10-33-26</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-46A-4">10-46A-4</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-46B-4">10-46B-4.</A><o:p></o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><o:p>&nbsp;</o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><span style='mso-tab-count: 1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b>Revenue Ruling:</b> Contractors must pay the contractors' excise tax on receipts from work done for the state and other governmental entities. The tax is to be computed on the total receipts received regardless of whether the receipt is characterized as material, labor, overhead, profit or excise tax. <span class=GramE>Secretary of Revenue's Revenue Ruling No. 79-3.</span><o:p></o:p></span></p> <p class=MsoNormal style='text-align:justify;mso-pagination:widow-orphan; tab-stops:.4in .6in .9in 1.1in 1.4in 1.6in 1.9in 2.1in 2.4in 2.6in 2.9in 3.1in 3.4in 3.6in 3.9in 4.1in'><span style='font-size:12.0pt;font-family:"Times New Roman"'><o:p>&nbsp;</o:p></span></p> </div> </body> </html>