64:07:01:20. Application of contractors' excise tax to projects involving items used to store and dispense fuel. Any contractor installing, performing maintenance upon, or repairing items used to store and dispense fuel are subject to contractors' excise tax.
Any contractor installing items used to store and dispense fuel owe contractors' excise tax on the gross receipts and use tax on the items installed and other materials used in the project. However, items used by the contractor upon which sales or use tax was paid are not subject to use tax.
Any contractor performing maintenance upon or repairing items used to store and dispense fuel owe contractors' excise tax on the gross receipts and use tax on any material used to maintain or repair the items. However, items used by the contractor upon which sales or use tax was paid are not subject to use tax.
Typical components of a fuel storage and dispensing system include:
(1) Fuel storage tank which may be located above or below ground;
(2) Fuel storage tank foundation which the fuel storage tank rests upon. The foundation may be located above or below ground;
(3) Fuel dispenser;
(4) Island which is the foundation upon which the fuel dispenser is placed;
(5) Submersible pump which moves the fuel from the tank to a dispenser;
(6) Pump housing which encloses the submersible pump;
(7) Piping which connects the fuel dispensers to the fuel storage tanks. Piping is also used to vent the fuel storage tank and to fill the fuel storage tanks;
(8) Spill container which collects fuel that overflows from the fill pipe. The spill container is usually underground, connected to the fill pipe;
(9) Wiring which brings electricity from a power source directly to the submersible pump, fuel dispensers, lights, monitors, and other electrical equipment;
(10) Electronic monitor which determines the amount of fuel in the tank. It may also detect leaks in the tank. The electronic monitor is usually mounted on or inside the fuel storage tank;
(11) Electronic monitor display unit which displays information collected by the electronic monitor. Typically the display unit is similar to a computer screen and is located in a building used to control the dispensing of the fuel;
(12) Canopy which is a shelter structure over the fuel dispensers; and
(13) Lights which are installed on or near the island, or on the canopy to illuminate the area.
Source: 28 SDR 69, effective November 21, 2001.
General Authority:SDCL 10-46A-19(3).
Law Implemented:SDCL 10-46A-2, 10-46A-2.2.
64:07:01:20.01. Installation of a fuel storage tank in a fuel storage and dispensing project. The person placing the tank upon or in the fuel storage tank foundation owes contractors' excise tax on the gross receipts and use tax on the tank and other items used in the project. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. Any contractor that installs items that are connected to, installed in, or that become a part of the storage tank owe contractors' excise tax on the gross receipts and use tax on the other materials used in the project. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. These contractors do not owe contractors' excise tax or use tax on the storage tank itself.
Source: 28 SDR 69, effective November 21, 2001.
General Authority:SDCL 10-46A-19(3).
Law Implemented:SDCL 10-46A-2, 10-46A-2.2.
64:07:01:20.02. Installation of piping in a fuel storage and dispensing project. The person installing piping owes contractors' excise tax on the gross receipts and use tax on the piping and other materials used in the project. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. If a separate contractor digs a trench for underground piping, that contractor owes contractors' excise tax on the gross receipts and use tax on the item. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. The contractor digging the trench does not owe contractors' excise tax on the piping.
Source: 28 SDR 69, effective November 21, 2001.
General Authority:SDCL 10-46A-19(3).
Law Implemented:SDCL 10-46A-2, 10-46A-2.2.
64:07:01:20.03. Installation of a canopy in a fuel storage and dispensing project. The person installing the canopy owes contractors' excise tax on the gross receipts and use tax on the canopy and other materials used in the project. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. Contractors that install any item that is connected to, or that become a part of the canopy owe contractors' excise tax on the gross receipts and use tax on the other materials used in the project. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. These contractors do not owe contractors' excise tax or use tax on the canopy itself.
Source: 28 SDR 69, effective November 21, 2001.
General Authority:SDCL 10-46A-19(3).
Law Implemented:SDCL 10-46A-2, 10-46A-2.2.
