State of South Dakota
LEGISLATIVE ASSEMBLY, 2007
HOUSE BILL NO. 1181
Introduced by: Representatives Glenski, Ahlers, Cutler, Gassman, Halverson, Miles, Sigdestad, Van Etten, and Willadsen and Senators Nesselhuf, Albers, McNenny, and Smidt (Orville)
of promoting any individual, initiative, referendum, or cause in a public election of the state or
any of its political subdivisions.
Section 3. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:
Budget, Office of the President are exempt from the provisions of this chapter: health services (major group 80); educational services (major group 82) except schools and educational services not elsewhere classified (industry no. 8299); social services (major group 83); agricultural services (major group 07) except veterinarian services (group no. 074) and animal specialty services, except veterinary (industry no. 0752); forestry services (group no. 085); radio and television broadcasting (group no. 483); railroad transportation (major group 40); local and suburban passenger transportation (group no. 411) except limousine services; school buses (group no. 415); trucking and courier services, except air (group no. 421) except collection and disposal of solid waste; farm product warehousing and storage (industry no. 4221); establishments primarily engaged in transportation on rivers and canals (group no. 444); establishments primarily engaged in air transportation, certified carriers (group no. 451); establishments primarily engaged in air transportation, noncertified carriers (group no. 452) except chartered flights (industry no. 4522) and airplane, helicopter, balloon, dirigible, and blimp rides for amusement or sightseeing; pipe lines, except natural gas (major group 46); arrangement of passenger transportation (group no. 472); arrangement of transportation of freight and cargo (group no. 473); rental of railroad cars (group no. 474); water supply (industry no. 4941); sewerage systems (industry no. 4952); security brokers, dealers and flotation companies (group no. 621); commodity contracts brokers and dealers (group no. 622); credit counseling services provided by individual and family social services (industry no. 8322); construction services (division C) except industry no. 1752 and locksmiths and locksmith shops; consumer credit reporting agencies, mercantile reporting agencies, and adjustment and collection agencies (group no. 732), if the debt was incurred out-of-state and the client does not reside within the state. The following are also specifically exempt from the provisions of this chapter: financial services of institutions subject to tax under chapter 10-43 including loan
origination fees, late payment charges, nonsufficient fund check charges, stop payment charges,
safe deposit box rent, exchange charges, commission on travelers checks, charges for
administration of trusts, interest charges, and points charged on loans; commissions earned or
service fees paid by an insurance company to an agent or representative for the sale of a policy;
services of brokers and agents licensed under Title 47; the sale of trading stamps; rentals of
motor vehicles as defined by § 32-5-1 leased under a single contract for more than twenty-eight
days; advertising services
except advertising services provided for political campaigns
provided by any corporation to another corporation which is centrally assessed having identical
ownership and services provided by any corporation to a wholly owned subsidiary which is
centrally assessed; continuing education programs; tutoring; vocational counseling, except
rehabilitation counseling; and motion picture rentals to a commercially operated theater
primarily engaged in the exhibition of motion pictures.
Section 5. That § 10-45-108 be amended to read as follows:
10-45-108. For purposes of the tax imposed by this chapter, a retailer shall source sales of tangible personal property and services to the location where the tangible personal property or service is received. The department shall promulgate rules, pursuant to chapter 1-26, defining the location of receipt. The rules promulgated pursuant to this section may provide an alternative method of sourcing telecommunication services and advertising services provided for political campaigns .