64:06:01:05.  Change in ownership. If the ownership status of a business which holds a tax permit changes from one type of business ownership such as sole proprietor, partnership, or corporation to another type of business ownership, a new tax permit is required. The new owner must apply for the new permit.

          A new tax permit is required for corporations which are sold or transferred only if ownership of the business is transferred to a different corporation or other owner.

          A new permit is not required for partnerships if one or more partners listed on the permit enters or leaves the partnership and the business continues to be operated under the partnership form. Those partners listed on the permit remain liable until the department is notified, in writing, of a change in the status of any partner. A new partner is automatically held liable for any partnership tax obligations 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; 19 SDR 42, effective September 29, 1992; 21 SDR 219, effective July 1, 1995; 28 SDR 178, effective July 1, 2002; 32 SDR 225, effective July 3, 2006.

          General Authority: SDCL 10-45-47.1(1), 10-45D-13(1), 10-46E-11(1), 10-52A-7(1).

          Law Implemented: SDCL 10-45-24, 10-45D-12, 10-46E-8, 10-52A-6.