CHAPTER 10-45
RETAIL SALES AND SERVICE TAX
10-45-1 Definition of terms.
10-45-1.1 Gross receipts not to include late charge fees.
10-45-1.2 Gross receipts not to include refunded sale price of property.
10-45-1.3 Gross receipts not to include credit or trade-in value of certain personal property.
10-45-1.4 Computation of tax to third decimal place.
10-45-1.5 Lease or rental defined--Exclusions.
10-45-1.6 Exemption for gross receipts pursuant to contract requiring retailer to display products or signage--Exception.
10-45-1.7 Certain nontaxable portions of bundled telecommunications transactions subject to tax.
10-45-1.8 Entire gross receipts from sale of bundled transactions subject to tax.
10-45-1.9 Bundled transaction defined.
10-45-1.10 Distinct and identifiable products--Exclusions.
10-45-1.11 One nonitemized price--Exclusions.
10-45-1.12 Bundled transaction--Exclusions.
10-45-1.13 De minimis defined.
10-45-1.14 Gross receipts defined.
10-45-1.15 Conditions under which gross receipts include consideration retailer received from third parties.
10-45-1.16 Exclusions from definition of gross receipts.
10-45-1.17 Telecommunications service defined.
10-45-1.18 Definition of terms related to telecommunications service and ancillary services.
10-45-1.19 Gross receipts excludes tax imposed by certain chapters and sections.
10-45-2 Tax on sale of tangible property.
10-45-2.1 Tax on sales of sectional homes--Sectional homes defined.
10-45-2.2 Materials incorporated in construction work--Restriction on application of rate increase.
10-45-2.3 Conditional or installment sales--Actual cash receipts subject to tax.
10-45-2.4 Tax on products transferred electronically.
10-45-2.5 Retailer engaged in business of selling tangible personal property, services, and products transferred electronically for use in state.
10-45-2.6 Definition of terms used in § 10-45-2.5.
10-45-2.7 Retailers processing orders electronically.
10-45-2.8 Retailers that are part of controlled group.
10-45-2.9 Retailers having contractual relationship with entity for installation, maintenance, or repair of purchases.
10-45-3 10-45-3. Repealed by SL 2006, ch 58, § 15, eff. April 1, 2006.
10-45-3.1 10-45-3.1. Repealed by SL 1982, ch 112, § 1.
10-45-3.2 10-45-3.2, 10-45-3.3. Repealed by SL 2006, ch 58, §§ 16, 17, eff. April 1, 2006.
10-45-3.3 10-45-3.3. Repealed by SL 2006, ch 58, § 17, eff. April 1, 2006.
10-45-3.4 Exemption of parts, repair services, and maintenance items and services on certain farm machinery, attachment units, and irrigation equipment.
10-45-3.5 Exemption for gross receipts from sale, resale, or lease of farm machinery, attachment units, and irrigation equipment.
10-45-4 Tax on receipts from business services.
10-45-4.1 Services subject to taxation.
10-45-4.2 Certain purchases considered for resale purposes.
10-45-5 Tax on receipts from specific enumerated businesses and services.
10-45-5.1 Coin operated washers and dryers--License in lieu of tax--Failure to pay fee as misdemeanor--Interest--Collection.
10-45-5.2 Services enumerated in standard industrial classification manual subject to tax--Other services subject to tax.
10-45-5.3 Tax on oil and gas field services.
10-45-5.4 10-45-5.4. Repealed by SL 2005, ch 72, § 3.
10-45-5.5 Chemicals purchased for use by lawn and garden services considered purchases for resale.
10-45-5.6 Exemptions for charitable organization devoted exclusively to relief of poor, distressed or underprivileged.
10-45-6 Tax on utility services.
10-45-6.1 Tax on intrastate, interstate, or international telecommunications service--Exemptions.
10-45-6.2 Tax on certain mobile telecommunications services.
10-45-6.3 Call center defined--Exclusions.
10-45-7 Tax on room or parking site rentals to transient guests.
10-45-7.1 Exemption for lodging house or hotel membership fees.
10-45-8 Tax on admissions to amusements, athletic contests, or events.
10-45-8.1 10-45-8.1. Repealed by SL 1987, ch 102, § 2.
10-45-8.2 Repealed by SL 2012, ch 67, § 1.
10-45-9 Constitutional and statutory exemptions from taxation.
10-45-9.1 Exemption of property sold for lease.
10-45-10 Exemption of sales to United States, states, municipalities, charities, and Indian tribes.
10-45-10.1 10-45-10.1. Repealed by SL 1979, ch 84, § 13.
10-45-10.2 10-45-10.2. Repealed by SL 1995, ch 68, § 10.
10-45-10.3 Exemption of freeport merchandise and stocks of merchandise brought as foreign or domestic merchandise into foreign trade zone--Stocks of merchandise defined--Application.
10-45-10.4 Exemption of handling fees paid by religious organizations to relief agencies for food distribution through giveaway programs.
10-45-11 Exemption of fuel sales otherwise taxed.
10-45-11.1 Exemption of goods and services furnished to meet warranty obligation without charge.
10-45-11.2 Exemption of sales of motor vehicles exempt from excise tax.
10-45-11.3 10-45-11.3. Repealed by SL 1995, ch 68, § 11.
10-45-12 10-45-12. Repealed by SL 1981, ch 103, § 2.
10-45-12.1 Services specifically exempt from tax.
10-45-12.2 Exemption of engineering, architectural, and surveying services.
10-45-12.3 10-45-12.3. Repealed by SL 2003, ch 61, § 3.
10-45-12.4 Certain services provided to rural water system by wholly owned cooperative or nonprofit corporation exempt from tax.
10-45-12.5 Exemption of certain sales commissions.
10-45-12.6 Exemption for credit services by credit bureaus to certain financial institutions.
10-45-12.7 Exemption for gross receipts of person officiating amateur sporting event.
10-45-13 Exemption of receipts used for civic and nonprofit associations and purposes.
10-45-13.1 Exemption of membership organizations.
10-45-13.2 Exemption of fair market value of personal property or service given without charge to exempt organization.
10-45-13.3 Exemption of lottery tickets.
10-45-13.4 Exemption of gross receipts from library copying charges.
10-45-13.5 Exemption of receipts received by the state and political subdivisions from management services provided to nonprofit entity.
10-45-14 Exemption of sales to educational institutions and hospitals--Purchases for members or employees taxable--Motor vehicle registration fee--Lists maintained by exempt institutions.
10-45-14.1 10-45-14.1. Repealed by SL 2005, ch 72, § 1.
10-45-14.2 Ink and newsprint exempt when used to produce shoppers' guides--Shoppers' guides defined.
10-45-14.3 10-45-14.3. Repealed by SL 2005, ch 72, § 2.
10-45-14.4 Packaging and container materials as tax exempt raw material.
10-45-14.5 Packaging and container materials sold to retailers exempt.
10-45-14.6 Exemption of hospital meals paid for by public entity.
10-45-14.7 Exemption of authorized purchases made with food stamps.
10-45-14.8 Exemption of authorized purchases of food.
10-45-14.9 Exemption of certain insulin sales.
10-45-14.10 Exemption of certain drugs.
10-45-14.11 Exemption of certain durable medical equipment and prosthetic devices.
10-45-14.12 Exemption of certain medical devices.
10-45-15 Exemption of seed used for agricultural purposes.
10-45-15.1 10-45-15.1. Repealed by SL 1995, ch 68, § 14.
10-45-16 Exemption of commercial fertilizer used for agricultural purposes.
10-45-16.1 Exemption of pesticides and related products or substances used for agricultural purposes--Use of funds from tax on endoparasiticides and ectoparasiticides.
10-45-16.2 Exemption of gross receipts from rental of devices used to apply agricultural fertilizers and pesticides.
10-45-16.3 Exemption of gross receipts from rental of agricultural devices owned by conservation district.
10-45-16.4 10-45-16.4, 10-45-17. Repealed by SL 1995, ch 68, §§ 15, 16.
10-45-18 Exemption of sales of livestock, poultry, ostriches, emus, or rheas other than ultimate retail sale.
10-45-18.1 Exemption of gross receipts from sale of live gamebirds by producer to certain nonprofit organizations.
10-45-18.2 Exemption of gross receipts from sales of certain animals.
10-45-18.3 Exemption of gross receipts from sale of feed and bedding for certain animals.
10-45-18.4 Exemption for sale of certain live nondomestic animals.
10-45-18.5 Exemption for sale of feed for certain nondomestic animals.
10-45-18.6 Exemption for sale of swine or cattle semen.
10-45-19 Exemption of fuel used for agricultural or railroad purposes.
10-45-19.1 Power charges for irrigation pumps exempt.
10-45-19.2 10-45-19.2. Repealed by SL 1995, ch 68, § 19.
10-45-19.3 Exemption of bulk water for domestic use.
10-45-20 Exemptions applied to taxable services.
10-45-20.1 Exemption of payments between members of controlled group--Exception.
10-45-20.2 Exemption of payments between members of controlled group--Reimbursement for third-party services to group.
10-45-20.3 Controlled group defined.
10-45-20.4 10-45-20.4. Repealed by SL 1989, ch 109, § 3.
10-45-20.5 Exemption of gross receipts from sale of services rendered--Exception.
10-45-20.6 Exemption of gross receipts from sale of certain replacement parts.
10-45-20.7 10-45-20.7, 10-45-20.8. Repealed by SL 1995, ch 68, §§ 20, 21.
10-45-21 Tax additional to other occupation and privilege taxes.
10-45-22 Addition of tax to price of product or service.
10-45-23 Schedule for collection of tax from consumer.
10-45-24 Application for retailer permit--Contents and execution--Application for statewide permit--Exceptions.
10-45-25 Issuance of retailer permit--Limited to person and place designated--Display in place of business--Effective until canceled or revoked.
10-45-26 Refusal of permit to delinquent taxpayer--Bond to secure payment of tax.
10-45-27 10-45-27, 10-45-27.1. Repealed by SL 2006, ch 61, §§ 2, 10, eff. Feb. 6, 2006.
10-45-27.1 10-45-27.1. Repealed by SL 2006, ch 61, § 10, eff. Feb. 6, 2006.
10-45-27.2 Collection allowance credit for collecting sales tax.
10-45-27.3 Filing return and remitting tax--Time for filing and remittance--Extension--Penalty for untimely return or remittance.
10-45-28 10-45-28. Repealed by SL 2007, ch 65, § 2.
10-45-28.1 10-45-28.1. Repealed by SL 1995, ch 68, § 22.
10-45-29 Deduction allowed for sales refunds.
10-45-29.1 Deduction allowed attorneys and accountants for amounts spent on behalf of clients.
10-45-30 Bad debts--Deduction from amount upon which tax is calculated--Return deduction allowed--Credit or refund.
10-45-30.1 Cash basis reporting and payment.
10-45-30.2 Accrual basis reporting and payment.
10-45-31 Receipts not issued for taxes remitted.
10-45-32 10-45-32, 10-45-33. Repealed by SL 1986, ch 111, § 27.
10-45-34 10-45-34. Repealed by SL 2010, ch 69, § 5.
10-45-35 Appeals from decisions of secretary.
10-45-36 10-45-36. Repealed by SL 2010, ch 69, § 6.
10-45-37 Jeopardy assessment of sales tax--Lien and distress warrant--Bond to pay tax.
10-45-38 10-45-38 to 10-45-41.1. Repealed by SL 1986, ch 111, § 28.
10-45-42 Endorsement and return of uncollectible warrant--Liability of officer for failure to issue or execute warrant.
10-45-43 10-45-43, 10-45-44. Repealed by SL 1986, ch 111, § 29.
10-45-45 Records preserved by persons subject to tax--Inspection by department.
10-45-46 10-45-46. Repealed by SL 1978, ch 70, § 7.
10-45-47 10-45-47. Superseded.
10-45-47.1 Promulgation of rules.
10-45-48 10-45-48. Repealed by SL 1984, ch 86, § 2.
10-45-48.1 Violation of chapter as criminal offense--Classification.
10-45-49 10-45-49 to 10-45-51. Repealed by SL 1984, ch 86, §§ 3 to 6.
10-45-52 Tax proceeds credited to general fund.
10-45-53 10-45-53, 10-45-54. Repealed by SL 1986, ch 111, § 30.
10-45-55 Personal liability of officers, managers, or partners of entity failing to file returns or pay tax--Security in lieu of liability--Bonded municipal officials exempt.
10-45-56 10-45-56. Repealed by SL 1995, ch 94, § 1.
10-45-58 Materials used by floor laying as purchases for resale.
10-45-59 10-45-59, 10-45-60. Repealed by SL 1995, ch 68, §§ 23, 24.
10-45-61 Exemption certificate--Responsibilities of purchaser--Violation as misdemeanor--Retention of certificate--Rules and forms.
10-45-61.1 Exemption certificate--Timing--Alternative Information.
10-45-62 Exemption of large boats subject to excise tax.
10-45-63 10-45-63. Repealed by SL 1995, ch 68, § 25.
10-45-64 Exemption of gaming proceeds.
10-45-65 10-45-65, 10-45-66. Repealed by SL 1995, ch 68, §§ 26, 27.
10-45-67 Exemption of natural gas transportation services by pipeline.
10-45-68 Exemption for the sale of credit card processing services.
10-45-69 10-45-69. Repealed by SL 1997, ch 68, § 11.
10-45-69.1 10-45-69.1 to 10-45-69.10. Repealed by SL 2002, ch 63, §§ 16 to 25.
10-45-70 10-45-70. Repealed by SL 2004, ch 94, § 2.
10-45-71 Passenger transportation gross receipts tax imposed--Transportation to be within state.
10-45-72 Inapplicability of tax.
10-45-73 10-45-73 to 10-45-79. Repealed by SL 2004, ch 94, §§ 4 to 10.
10-45-80 10-45-80. Repealed by SL 1997, ch 69, § 1.
10-45-81 10-45-81. Repealed by SL 2004, ch 94, § 11.
10-45-82 Gross receipts from charge of interest exempted.
10-45-83 Pawnbrokers not eligible for exemption.
10-45-84 Fee or commission not subject to tax.
10-45-85 Temporary vendor to maintain inventory records--Violation as misdemeanor.
10-45-86 Temporary vendor to maintain sales receipts--Violation as misdemeanor.
10-45-87 Temporary vendor to furnish list of suppliers--Violation as misdemeanor.
10-45-88 Review and audit of temporary vendors.
10-45-89 Failure to maintain records--Revocation of temporary license.
10-45-90 Exemption for gross receipts from certain rodeo services.
10-45-91 Admissions to rodeos and related activities taxable.
10-45-92 Allowable deductions for auctioneers.
10-45-92.1 Retail sales include auctions, consignments, products transferred electronically, and services--Responsibilities of auction clerk and auctioneer.
10-45-93 Exemption for gross receipts from international sale of agricultural and industrial equipment.
10-45-94 Exemption for gross receipts from direct mail service.
10-45-94.1 Direct mail defined.
10-45-95 Materials purchased by locksmiths are purchases for resale.
10-45-96 Tax on gross receipts of professional employer organization--Deduction available.
10-45-97 Professional employer organization defined.
10-45-98 Temporary help services not subject to § 10-45-96.
10-45-99 Definitions.
10-45-100 Extension for remitting sales and use tax on manufacturing equipment.
10-45-101 Requirements for extension.
10-45-102 Extension applies to full costs and installation fees.
10-45-103 Application for extension permit--Permit nontransferable.
10-45-104 Secretary to prescribe form and documentation requirements.
10-45-105 Fraudulent claim--Tax due constitutes lien in favor of state.
10-45-106 Right to hearing on denial of extension request.
10-45-107 Promulgation of rules regarding filing extensions.
10-45-108 Sourcing of sales and services.
10-45-109 Registration and tax collection does not create nexus for other taxes.
10-45-110 Exemption for sale of coins, currency, or bullion.
10-45-111 Relief from liability for failing to collect tax at new rate--Conditions.
10-45-112 Exemption for nonprofit corporations created for fire protection.
10-45-113 Exemption for small sales by minors.
10-45-114 Exemption--Coaches.
10-45-1. Definition of terms.
Terms used in this chapter mean:
(1) "Agricultural purposes," the producing, raising, growing, or harvesting of food or fiber upon agricultural land, including dairy products, livestock, and crops. The services of custom harvesters, chemical applicators, fertilizer spreaders, hay grinders, and cultivators are considered agricultural purposes. The harvesting of timber on land within the state is considered an agricultural purpose;
(2) "Business," any activity engaged in by any person or caused to be engaged in by such person with the object of gain, benefit, or advantage, either direct or indirect;
(3) "Candy," any preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. The term, candy, does not include any preparation containing flour and does not require refrigeration;
(4) "Delivery charges," charges by the retailer for preparation and delivery to a location designated by the purchaser of tangible personal property, any product transferred electronically, or services including transportation, shipping, postage, handling, crating, and packing. The term does not include postage for direct mail;
(5) "Food" and "food ingredient," any substance, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that is sold for ingestion or chewing by humans and is consumed for its taste or nutritional value. The term, food, does not include alcoholic beverages, tobacco, or prepared food;
(6) Repealed by SL 2007, ch 56, § 1.
(7) "Person," any individual, firm, copartnership, joint adventure, association, limited liability company, corporation, municipal corporation, estate, trust, business trust, receiver, the State of South Dakota and its political subdivisions, or any group or combination acting as a unit;
(8) "Prepared food," any food sold in a heated state or heated by the seller; two or more food ingredients mixed or combined by the seller for sale as a single item; or food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used to transport the food.
Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part 401.11 of its Food Code as of January 1, 2003, so as to prevent food borne illnesses;
(8A) "Product transferred electronically," any product obtained by the purchaser by means other than tangible storage media. A product transferred electronically does not include any intangible such as a patent, stock, bond, goodwill, trademark, franchise, or copyright.
(9) "Relief agency," the state, and county, municipality or district thereof, or any agency engaged in actual relief work;
(10) "Retail sale" or "sale at retail," any sale, lease, or rental for any purpose other than for resale, sublease, or subrent;
(11) "Retailer," any person engaged in the business of selling tangible goods, wares, or merchandise at retail, or the furnishing of gas, electricity, water, and communication service, and tickets or admissions to places of amusement and athletic events as provided in this chapter, and the sale at retail of products transferred electronically. The term also includes any person subject to the tax imposed by §§ 10-45-4 and 10-45-5. The isolated or occasional sale of tangible personal property or any product transferred electronically at retail by a person who does not hold himself or herself out as engaging in the business of selling such tangible personal property or products transferred electronically at retail does not constitute such person a retailer;
(12) "Sale," any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration;
(13) "Soft drinks," any nonalcoholic beverages that contain natural or artificial sweeteners. The term, soft drinks, does not include any beverage that contains milk or milk products, soy, rice of similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume;
(14) "Tangible personal property," personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. The term includes electricity, water, gas, steam, and prewritten computer software.
Source: SDC 1939, § 57.3101; SL 1979, ch 84, § 6; SL 1980, ch 93; SL 1989, ch 102; SL 1989, ch 103; SL 1990, ch 87; SL 1994, ch 96, § 1; SL 1994, ch 351, § 24; SL 1995, ch 68, § 1; SL 1996, ch 87; SL 2002, ch 64, § 13; SL 2003, ch 61, § 1; SL 2004, ch 187, § 5; SL 2005, ch 69, § 1; SL 2005, ch 70, § 1; SL 2007, ch 56, § 1; SL 2008, ch 51, §§ 2 to 4; SL 2010, ch 59, § 3; SL 2016, ch 64, § 1.
10-45-1.1. Gross receipts not to include late charge fees.
For purposes of the tax imposed by this chapter, gross receipts do not include any fees or other interest imposed by a retailer for late charges on overdue accounts, no account, or nonsufficient funds checks.
Source: SL 2002, ch 64, § 14.
10-45-1.2. Gross receipts not to include refunded sale price of property.
For purposes of the tax imposed by this chapter, the sale price of property returned by customers are not gross receipts if the full sale price thereof is refunded either in cash or by credit.
Source: SL 2002, ch 64, § 15.
10-45-1.3. Gross receipts not to include credit or trade-in value of certain personal property.
For purposes of the tax imposed by this chapter, if any tangible personal property or any product transferred electronically is taken in trade or in a series of trades as a credit or part payment of a retail sale taxable under this chapter, and the tangible personal property or the product transferred electronically taken in trade is subject to the sales tax imposed by this chapter when sold, the credit or trade-in value allowed by the retailer may not be included as gross receipts.
Source: SL 2002, ch 64, § 16; SL 2008, ch 51, § 5.
10-45-1.4. Computation of tax to third decimal place.
In computing the tax to be remitted under this chapter as the result of any transaction, the tax amount shall be carried to the third decimal place. Amounts of tax less than one-half of one cent shall be disregarded and amounts of tax of one-half cent or more shall be considered an additional cent.
Source: SL 2002, ch 64, § 24.
10-45-1.5. Lease or rental defined--Exclusions.
For the purposes of the tax imposed by this chapter, the term, lease or rental, means any transfer of possession or control of tangible personal property or any product transferred electronically for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend. Lease or rental does not include:
(1) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
(2) A transfer or possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of one hundred dollars or one percent of the total required payments; or
(3) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this subdivision, an operator shall do more than maintain, inspect, or set-up the tangible personal property.
Source: SL 2003, ch 61, § 2; SL 2008, ch 51, § 6.
10-45-1.6. Exemption for gross receipts pursuant to contract requiring retailer to display products or signage--Exception.
There are hereby exempted from the provisions of this chapter and the tax imposed by it, gross receipts received by a retailer from a manufacturer, wholesaler, or distributor pursuant to a written contract between the retailer and manufacturer, wholesaler, or distributor that requires the retailer to display the manufacturer, wholesaler, or distributor's product or signage in a specified manner or location. Any discount or deferred payment received by a retailer from a distributor, wholesaler, or manufacturer for purchasing a product for sale at retail does not constitute gross receipts subject to the tax imposed by this chapter.
Source: SL 2003, ch 62, § 1.
10-45-1.7. Certain nontaxable portions of bundled telecommunications transactions subject to tax.
In the case of a bundled transaction that includes any of the following: telecommunications services, ancillary services, internet access, or audio or video programming services and the charges are attributable to retail sales that are taxable and retail sales that are nontaxable, the portion of the price attributable to the nontaxable retail sales is subject to tax unless the provider can identify by reasonable and verifiable standards such portion from its books and records kept in the regular course of business.
Source: SL 2003, ch 64, § 1; SL 2007, ch 57, § 1.
10-45-1.8. Entire gross receipts from sale of bundled transactions subject to tax.
Except for the provisions of § 10-45-1.7, the tax imposed by this chapter applies to the entire gross receipts resulting from the sale of bundled transactions.
Source: SL 2007, ch 58, § 1.
10-45-1.9. Bundled transaction defined.
For the purposes of this chapter, the term, bundled transaction, means the retail sale of two or more distinct and identifiable products sold for one nonitemized price.
Source: SL 2007, ch 58, § 2.
10-45-1.10. Distinct and identifiable products--Exclusions.
For the purposes of this chapter, the phrase, distinct and identifiable products, does not include:
(1) Packaging, including containers, boxes, sacks, bags, bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the products and are incidental or immaterial to the retail sale;
(2) A product provided free of charge with the required purchase of another product, if the sales price of the product purchased does not vary depending on the inclusion of the product provided free of charge; or
(3) Items included in gross receipts.
Source: SL 2007, ch 58, § 3.
10-45-1.11. One nonitemized price--Exclusions.
For the purposes of this chapter, the phrase, one nonitemized price, does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form including an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list.
Source: SL 2007, ch 58, § 4.
10-45-1.12. Bundled transaction--Exclusions.
For the purposes of this chapter, the term, bundled transaction, does not include:
(1) A transaction that includes the retail sale of real property or services to real property;
(2) A transaction that includes the retail sale of any products in which the gross receipts varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction;
(3) A transaction that includes the retail sale of tangible personal property and a service where the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service;
(4) A transaction that includes the retail sale of any product transferred electronically and a service where the product transferred electronically is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service;
(5) A transaction that includes the retail sale of services where one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service;
(6) A transaction that includes the retail sale of taxable products and nontaxable products and the purchase price or gross receipts of the taxable products is de minimis; or
(7) A transaction that includes the retail sale of exempt tangible personal property and taxable tangible personal property where:
(a) The transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, or prosthetic devices all as defined in chapter 10-45, or over-the-counter drugs or medical supplies; and
(b) The retailer's purchase price or gross receipts of the taxable tangible personal property is fifty percent or less of the total purchase price or gross receipts of the bundled tangible personal property. No retailer may use a combination of the purchase price and gross receipts of the tangible personal property when making the fifty percent determination for a transaction.
Source: SL 2007, ch 58, § 5; SL 2008, ch 51, § 7.
10-45-1.13. De minimis defined.
For the purposes of § 10-45-1.12, the term, de minimis, means the retailer's purchase price or gross receipts of the taxable products is ten percent or less of the total purchase price or gross receipts of the bundled products. A retailer shall use either the purchase price or the gross receipts of the products to determine if the taxable products are de minimis. No retailer may use a combination of the purchase price and gross receipts of the products to determine if the taxable products are de minimis. A retailer shall use the full term of a service contract to determine if the taxable products are de minimis.
Source: SL 2007, ch 58, § 6.
10-45-1.14. Gross receipts defined.
For the purposes of this chapter, the term, gross receipts, means the total amount or consideration, including cash, credit, property, and services, for which tangible personal property, any product transferred electronically, or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:
(1) The retailer's cost of the property or service sold;
(2) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the retailer, all taxes imposed on the retailer, and any other expense of the retailer; and
(3) Except as provided in chapter 10-46A or 10-46B, charges by the retailer for any services necessary to complete the sale whether or not separately stated, including delivery charges.
Source: SL 2007, ch 56, § 2; SL 2008, ch 51, § 8.
10-45-1.15. Conditions under which gross receipts include consideration retailer received from third parties.
Gross receipts, as defined in § 10-45-1.14, include consideration received by the retailer from third parties if:
(1) The retailer actually receives consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;
(2) The retailer has an obligation to pass the price reduction or discount through to the purchaser;
(3) The amount of the consideration attributable to the sale is fixed and determined by the retailer at the time of the sale of the item to the purchaser; and
(4) One of the following criteria is met:
(a) The purchaser presents a coupon, certificate, or other documentation to the retailer to claim a price reduction or discount where the coupon, certificate, or documentation is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any retailer to whom the coupon, certificate, or documentation is presented;
(b) The purchaser identifies himself or herself to the retailer as a member of a group or organization entitled to a price reduction or discount (a preferred customer card that is available to any patron does not constitute membership in such a group); or
(c) The price reduction or discount is identified as a third party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate, or other documentation presented by the purchaser.
For the purposes of this section, the purchaser is the end consumer.
Source: SL 2007, ch 56, § 3.
10-45-1.16. Exclusions from definition of gross receipts.
Gross receipts, as defined in § 10-45-1.14, do not include:
(1) Discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a retailer and taken by a purchaser on a sale;
(2) Interest, financing, and carrying charges from credit extended on the sale of tangible personal property, any product transferred electronically, or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser; and
(3) Any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale, or similar document given to the purchaser.
Source: SL 2007, ch 56, § 4; SL 2008, ch 51, § 9.
10-45-1.17. Telecommunications service defined.
The term, telecommunications service, as used in this chapter, means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. The term, telecommunications service, includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over internet protocol services or is classified by the Federal Communications Commission as enhanced or value added.
The term, telecommunications service, does not include:
(1) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information;
(2) Installation or maintenance of wiring or equipment on a customer's premises;
(3) Tangible personal property;
(4) Advertising, including directory advertising;
(5) Billing and collection services provided to third parties;
(6) Internet access service;
(7) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include but not be limited to cable service as defined in 47 USC 522(6), as of June 1, 2007, and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3;
(8) Ancillary services; or
(9) Digital products delivered electronically, including but not limited to software, music, video, reading materials, or ring tones.
The term, telecommunications service, includes the following services:
(1) "800 service," any telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call;
(2) "900 service," an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. A 900 service does not include the charge for the collection of services provided by the seller of the telecommunications services to the subscriber or service or product sold by the subscriber to the subscriber's customer;
(3) "Fixed wireless service," a telecommunications service that provides radio communication between fixed points;
(4) "Mobile wireless service," a telecommunications service that is transmitted, conveyed, or routed regardless of the technology used, where either the origination point or termination point, or both, of the transmission, conveyance, or routing are not fixed;
(5) "Paging service," a telecommunications service that provides transmission of coded radio signals for the purpose of activation specific pages. Such transmissions may include either messages or sounds, or both;
(6) "Prepaid calling service," the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount;
(7) "Prepaid wireless calling service," a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content and ancillary services, which must be paid for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount;
(8) "Private communication service," a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels; and
(9) "Value-added non-voice data service," a service that otherwise meets the definition of telecommunications services in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for a purpose other than transmission, conveyance, or routing.
Source: SL 2008, ch 52, § 2; SL 2009, ch 47, § 1.
10-45-1.18. Definition of terms related to telecommunications service and ancillary services.
Terms used in this chapter mean:
(1) "Intrastate telecommunications service," a telecommunications service that originates in one United States state or a United States territory or possession, and terminates in the same United States state or a United States territory or possession;
(2) "Interstate telecommunications service," a telecommunications service that originates in one United States state, or a United States territory or possession, and terminates in a different United States state or a United States territory or possession;
(3) "International telecommunications service," a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively. United States includes the District of Columbia or a United States territory or possession;
(4) "Ancillary services," services that are associated with or incidental to the provision of telecommunications services, including detailed telecommunications billing, directory assistance, vertical service, and voice mail services;
(5) "Detailed telecommunications billing service," an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement;
(6) "Directory assistance," an ancillary service of providing telephone number information, address information, or telephone number information and address information;
(7) "Vertical service," an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services;
(8) "Voice mail service," an ancillary service that enables the customer to store, send, or receive recorded messages. The term does not include any vertical services that the customer may be required to have in order to utilize the voice mail service;
(9) "Conference bridging service," an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. The term does not include the telecommunications services used to reach the conference bridge.
Source: SL 2009, ch 47, § 2; SL 2010, ch 56, § 1.
10-45-1.19. Gross receipts excludes tax imposed by certain chapters and sections.
Notwithstanding any other provision of law, gross receipts as defined in this chapter do not include any tax imposed by this chapter and chapters 10-45D, 10-52, and 10-52A, and §§ 49-34A-45 and 49-34A-46 that is separately stated on the invoice, bill of sale, or similar document given to the purchaser.
Source: SL 2013, ch 56, § 1; SL 2015, ch 232, § 3.
10-45-2. Tax on sale of tangible property.
There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and two-tenths percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the state to consumers or users.
Source: SL 1935, ch 205, § 34; SL 1937, ch 253, § 1; SDC 1939, § 57.3201; SL 1941, ch 345; SL 1943, ch 296; SL 1965, ch 288, § 1; SL 1967, ch 335; SL 1969, ch 267, § 1; SL 1978, ch 72, § 37; SL 1979, ch 84, § 1; SL 1980, ch 325, § 14; SL 1987, ch 98, § 2; SL 1988, ch 106, § 1; SL 2016, ch 65, § 1, eff. June 1, 2016; SL 2023, ch 32, § 1.
Effective July 1, 2027
10-45-2. Tax on sale of tangible property.
There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and one-half percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the State of South Dakota to consumers or users.
Source: SL 1935, ch 205, § 34; SL 1937, ch 253, § 1; SDC 1939, § 57.3201; SL 1941, ch 345; SL 1943, ch 296; SL 1965, ch 288, § 1; SL 1967, ch 335; SL 1969, ch 267, § 1; SL 1978, ch 72, § 37; SL 1979, ch 84, § 1; SL 1980, ch 325, § 14; SL 1987, ch 98, § 2; SL 1988, ch 106, § 1; SL 2016, ch 65, § 1, eff. June 1, 2016; SL 2023, ch 32, §§ 1, 19.
10-45-2.1. Tax on sales of sectional homes--Sectional homes defined.
Sales of sectional homes are subject to sales tax, which shall be based upon the fair market value of the raw materials used to construct each home.
For the purpose of this section, the term, sectional homes, means any home pre-built in whole or in part for the purpose of permanent placement on a foundation. Mobile homes as defined in subdivision 32-3-1(8) and manufactured homes as defined in subdivision 32-3-1(6) are not sectional homes.
Source: SL 1977, ch 99, § 1; SL 1987, ch 29, § 6; SL 2005, ch 71, § 1.
10-45-2.2. Materials incorporated in construction work--Restriction on application of rate increase.
No tax increase may be levied on materials incorporated in construction work pursuant to construction contracts bid or entered into on or before the effective date of the tax increase.
Source: SL 1984, ch 93, § 1; SL 2001, ch 56, § 1.
10-45-2.3. Conditional or installment sales--Actual cash receipts subject to tax.
For purposes of the tax imposed by this chapter, on any sale made under a conditional sales contract, or under other forms of sale wherein the payment of the principal sum is extended over a period longer than sixty days from the date of sale, only the portion of the sale amount that has actually been received in cash by the retailer during each reporting period is subject to the tax imposed by this chapter.
Source: SL 2002, ch 64, § 17.
10-45-2.4. Tax on products transferred electronically.
There is hereby imposed a tax at the same rate as that imposed upon sales of tangible personal property in this state upon the gross receipts of all sales, leases, or rentals of any product transferred electronically.
The tax is imposed if:
(1) The sale is to an end user;
(2) The sale is to a person who is not an end user, unless otherwise exempted by this chapter;
(3) The seller grants the right of permanent or less than permanent use of the products transferred electronically; or
(4) The sale is conditioned or not conditioned upon continued payment.
For the purposes of this section, the term, end user, does not include any person who received by contract any product transferred electronically for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the product, in whole or in part, to another person.
For the purposes of this section, the term, permanent use, means perpetual or for an indefinite or unspecified length of time. The sale of a digital code that may be utilized to obtain a product transferred electronically shall be taxed in the same manner as the product transferred electronically. A digital code is a code that permits a purchaser to obtain at a later date a product transferred electronically.
Source: SL 2008, ch 51, § 1.
10-45-2.5. Retailer engaged in business of selling tangible personal property, services, and products transferred electronically for use in state.
Pursuant to §§ 10-45-2.5 to 10-45-2.9, inclusive, a retailer is engaged in the business of selling tangible personal property, services, and products transferred electronically for use in this state if:
(1) Both of the following conditions exist:
(a) The retailer holds a substantial ownership interest in, or is owned in whole or in substantial part by, a retailer maintaining a place of business within this state; and
(b) The retailer sells the same or a substantially similar line of products as the related retailer in this state and does so under the same or a substantially similar business name, or the instate facility or instate employee of the related retailer is used to advertise, promote, or facilitate sales by the retailer to a consumer; or
(2) The retailer holds a substantial ownership interest in, or is owned in whole or in substantial part by, a business that maintains a distribution house, sales house, warehouse, or similar place of business in this state that delivers property sold by the retailer to consumers.
Source: SL 2011, ch 56, § 1.
10-45-2.6. Definition of terms used in § 10-45-2.5.
Terms used in § 10-45-2.5 mean:
(1) "Substantial ownership interest," an interest in an entity that is not less than the degree of ownership of equity interest in an entity that is specified by Section 78p of Title 15 of the United States Code as of January 1, 2011, with respect to a person other than a director or officer;
(2) "Ownership," includes both direct ownership and indirect ownership through a parent, subsidiary, or affiliate.
Source: SL 2011, ch 56, § 2.
10-45-2.7. Retailers processing orders electronically.
The processing of orders electronically, including facsimile, telephone, the internet, or other electronic ordering process, does not relieve a retailer of responsibility for collection of the tax from the purchaser if the retailer is doing business in this state pursuant to §§ 10-45-2.5 to 10-45-2.9, inclusive.
Source: SL 2011, ch 56, § 3.
10-45-2.8. Retailers that are part of controlled group.
Any retailer that is part of a controlled group as defined in § 10-45-20.3 and that controlled group has a component member that is a retailer engaged in business in this state as described in §§ 10-45-2.5 to 10-45-2.9, inclusive, shall be presumed to be a retailer engaged in business in this state. This presumption may be rebutted by evidence that during the calendar year at issue the component member that is a retailer engaged in business in this state did not engage in any of the activities described in §§ 10-45-2.5 to 10-45-2.9, inclusive, on behalf of the retailer. For purposes of this section, the term, component member, means any component member as defined in Section 1563(b) of the Internal Revenue Code as of January 1, 2011.
Source: SL 2011, ch 56, § 4.
10-45-2.9. Retailers having contractual relationship with entity for installation, maintenance, or repair of purchases.
Any retailer making sales of tangible personal property to purchasers in this state by mail, telephone, the internet, or other media which has a contractual relationship with an entity to provide and perform installation, maintenance, or repair services for the retailer's purchasers within this state shall be included within the definition of retailer under the provisions of §§ 10-45-2.5 to 10-45-2.9, inclusive.
Source: SL 2011, ch 56, § 5.
10-45-3.4. Exemption of parts, repair services, and maintenance items and services on certain farm machinery, attachment units, and irrigation equipment.
There are exempted from the provisions of this chapter and the tax imposed by it, gross receipts from the sale of the following:
(1) Parts and repair services on farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes which are exempt from the tax imposed by this chapter pursuant to § 10-45-3.5, if the part replaces a farm machinery, attachment unit, or irrigation equipment part assigned a specific or generic part number by the manufacturer of the farm machinery, attachment unit, or irrigation equipment; and
(2) Maintenance items and maintenance services used on farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes which are exempt from the tax imposed by this chapter pursuant to § 10-45-3.5.
Source: SL 2002, ch 64, § 19, eff. Jan. 1, 2006; SL 2006, ch 47, § 1, eff. Mar. 2, 2006; SL 2015, ch 67, § 1.
10-45-3.5. Exemption for gross receipts from sale, resale, or lease of farm machinery, attachment units, and irrigation equipment.
There are exempted from the provisions of this chapter and from the tax imposed by it, gross receipts from the sale, resale, or leasing of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes. The term, farm machinery, includes all-terrain vehicles of three or more wheels used exclusively by the purchaser for agricultural purposes on agricultural land. The purchaser shall sign and deliver to the seller a statement that the all-terrain vehicle will be used exclusively for agricultural purposes.
Source: SL 2006, ch 58, § 14.
10-45-4. Tax on receipts from business services.
There is hereby imposed a tax at the same rate as that imposed upon sales of tangible personal property in this state upon the gross receipts of any person from the engaging or continuing in the practice of any business in which a service is rendered. Any service as defined by § 10-45-4.1 shall be taxable, unless the service is specifically exempt from the provisions of this chapter.
Source: SL 1965, ch 296, § 1; SL 1979, ch 84, §§ 7, 12.
10-45-4.1. Services subject to taxation.
"Service" means all activities engaged in for other persons for a fee, retainer, commission, or other monetary charge, which activities involve predominantly the performance of a service as distinguished from selling property. In determining what is a service, the intended use, principal objective or ultimate objective of the contracting parties shall not be controlling. For the purposes of this chapter services rendered by an employee for his employer are not taxable.
Source: SL 1979, ch 84, § 9; SL 1980, ch 100, § 6.
10-45-4.2. Certain purchases considered for resale purposes.
Services purchased by an engineer, architect, or surveyor on behalf of a client in the performance of a contract for such client shall be considered purchases for resale purposes.
Source: SL 1988, ch 107, § 1.
10-45-5. Tax on receipts from specific enumerated businesses and services.
There is imposed a tax at the rate of four and two-tenths percent upon the gross receipts of any person from engaging or continuing in any of the following businesses or services in this state: abstracters; accountants; ancillary services; architects; barbers; beauty shops; bill collection services; blacksmith shops; car washing; dry cleaning; dyeing; exterminators; garage and service stations; garment alteration; cleaning and pressing; janitorial services and supplies; specialty cleaners; laundry; linen and towel supply; membership or entrance fees for the use of a facility or for the right to purchase tangible personal property, any product transferred electronically, or services; photography; photo developing and enlarging; tire recapping; welding and all repair services, except repair services for farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes; cable television; and rentals of tangible personal property except leases of tangible personal property between one telephone company and another telephone company, motor vehicles as defined pursuant to § 32-5-1 leased under a single contract for more than twenty-eight days, and mobile homes. However, the specific enumeration of businesses and professions made in this section does not, in any way, limit the scope and effect of the provisions of § 10-45-4.
Source: SL 1965, ch 296, § 2; SL 1969, ch 274, § 1; SL 1971, ch 80; SL 1974, ch 100; SL 1975, ch 103; SL 1978, ch 147, § 2; SL 1983, ch 86, § 1; SL 1983, ch 87; SL 1987, ch 98, § 4; SL 1988, ch 106, § 1; SL 2002, ch 64, § 20, eff. Jan. 1, 2006; SL 2006, ch 58, § 18, eff. Apr. 1, 2006; SL 2008, ch 51, § 10; SL 2009, ch 47, § 4; SL 2015, ch 67, § 2; SL 2016, ch 65, § 2, eff. June 1, 2016; SL 2023, ch 32, § 2.
Effective July 1, 2027
10-45-5. Tax on receipts from specific enumerated businesses and services.
There is imposed a tax at the rate of four and one-half percent upon the gross receipts of any person from engaging or continuing in any of the following businesses or services in this state: abstracters; accountants; ancillary services; architects; barbers; beauty shops; bill collection services; blacksmith shops; car washing; dry cleaning; dyeing; exterminators; garage and service stations; garment alteration; cleaning and pressing; janitorial services and supplies; specialty cleaners; laundry; linen and towel supply; membership or entrance fees for the use of a facility or for the right to purchase tangible personal property, any product transferred electronically, or services; photography; photo developing and enlarging; tire recapping; welding and all repair services, except repair services for farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes; cable television; and rentals of tangible personal property except leases of tangible personal property between one telephone company and another telephone company, motor vehicles as defined pursuant to § 32-5-1 leased under a single contract for more than twenty-eight days and mobile homes. However, the specific enumeration of businesses and professions made in this section does not, in any way, limit the scope and effect of the provisions of § 10-45-4.
Source: SL 1965, ch 296, § 2; SL 1969, ch 274, § 1; SL 1971, ch 80; SL 1974, ch 100; SL 1975, ch 103; SL 1978, ch 147, § 2; SL 1983, ch 86, § 1; SL 1983, ch 87; SL 1987, ch 98, § 4; SL 1988, ch 106, § 1; SL 2002, ch 64, § 20, eff. Jan. 1, 2006; SL 2006, ch 58, § 18, eff. Apr. 1, 2006; SL 2008, ch 51, § 10; SL 2009, ch 47, § 4; SL 2015, ch 67, § 2; SL 2016, ch 65, § 2, eff. June 1, 2016; SL 2023, ch 32, §§ 2, 19.
10-45-5.1. Coin operated washers and dryers--License in lieu of tax--Failure to pay fee as misdemeanor--Interest--Collection.
The annual license fee for each coin operated washer and dryer in this state is twenty dollars. However, in municipalities having a population of one thousand persons or less, the annual license fee is sixteen dollars. The license fee is in lieu of any sales or gross receipts taxes from the operation or ownership of coin operated washers and dryers. Any person who fails to pay the fee is guilty of a Class 2 misdemeanor. Any person who fails to pay the fee prescribed on or before December thirty-first of the year prior to the year for which the fee is due is subject to an interest charge on the unpaid fee at the rate of two percent per month or part thereof. The interest charge commences immediately after the date the fee becomes due and is payable immediately. The secretary of revenue shall promulgate rules pursuant to chapter 1-26 concerning:
(1) The procedure for license application;
(2) The collection of the license fee;
(3) The placement of the license or decalcomania; and
(4) The transfer of a license to a new owner.
Source: SL 1969, ch 274, § 2; SL 1982, ch 86, § 33; SL 1983, ch 27, § 6; SL 1987, ch 82, § 24; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2009, ch 48, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-5.2. Services enumerated in standard industrial classification manual subject to tax--Other services subject to tax.
The following services enumerated in the Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President, are specifically subject to the tax levied by this chapter: metal mining services (group no. 108); coal mining (major group 12); nonmetallic minerals (except fuels) services (group no. 148); service industries for the printing trade (group no. 279); coating, engraving and allied services (group no. 347); communication, electric and gas services (division E except group nos. 483, 494 and 495); hotels, motels, and tourist courts (group no. 701); rooming and boarding houses (group no. 702); camps and recreational vehicle parks (group no. 703); personal services (major group 72); business services (major group 73); automotive repair, services, and parking (major group 75); miscellaneous repair services (major group 76), except repair services for farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes; amusement and recreation services (major group 79); legal services (major group 81); landscape and horticultural services (group no. 078); engineering, accounting, research, management, and related services (major group 87, except industry no. 8733); title abstract offices (group no. 654); consumer credit reporting agencies, mercantile reporting agencies, and adjustment and collection agencies (group no. 732); real estate agents and managers (group no. 653); funeral service and crematories (group no. 726), except that purchases of goods or services with money advanced as an accommodation are retail purchases and are not includable in gross receipts for funeral services and fees paid or donated for religious ceremonies are not includable in gross receipts for funeral services; loan brokers (industry no. 6163); repair shops and related services, not elsewhere classified (industry no. 7699) but only locksmiths and locksmith shops; and floor laying and other floor work not elsewhere classified (industry no. 1752). In addition, the following services are also specifically subject to the tax levied by this chapter: livestock slaughtering services; dog grooming services; airplane, helicopter, balloon, dirigible and blimp rides for amusement or sightseeing; the collection and disposal of solid waste; and all appraiser's services. The services enumerated in this section may not be construed as a comprehensive list of taxable services but rather as a representative list of services intended to be taxable pursuant to the provisions of this chapter.
Source: SL 1979, ch 84, § 10; SL 1980, ch 94; SL 1980, ch 95; SL 1982, ch 113, § 1; SL 1986, ch 100, § 1; SL 1988, ch 108, § 1; SL 1988, ch 112, § 2; SL 1989, ch 30, § 32; SL 1989, ch 104, § 1; SL 1991, ch 108, § 3; SL 1995, ch 68, § 7; SL 1996, ch 83, § 12; SL 1998, ch 71, § 4; SL 2006, ch 58, § 19, eff. Apr. 1, 2006; SL 2015, ch 67, § 3.
10-45-5.3. Tax on oil and gas field services.
There is imposed, at the rate of four and two-tenths percent, an excise tax on the gross receipts of any person engaging in oil and gas field services (group no. 138) as enumerated in the Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President.
Source: SL 1982, ch 113, § 2; SL 1987, ch 98, § 5; SL 1988, ch 106, § 1; SL 1988, ch 108, § 2; SL 1991, ch 100, § 1; SL 2002, ch 64, § 21; SL 2016, ch 65, § 3, eff. June 1, 2016; SL 2023, ch 32, § 3.
Effective July 1, 2027
10-45-5.3. Tax on oil and gas field services.
There is imposed, at the rate of four and one-half percent, an excise tax on the gross receipts of any person engaging in oil and gas field services (group no. 138) as enumerated in the Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President.
Source: SL 1982, ch 113, § 2; SL 1987, ch 98, § 5; SL 1988, ch 106, § 1; SL 1988, ch 108, § 2; SL 1991, ch 100, § 1; SL 2002, ch 64, § 21; SL 2016, ch 65, § 3, eff. June 1, 2016; SL 2023, ch 32, §§ 3, 19.
10-45-5.5. Chemicals purchased for use by lawn and garden services considered purchases for resale.
Chemicals purchased for use by lawn and garden services (industry no. 0782) as enumerated in the Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President, and used in such services shall be considered as purchases for resale.
Source: SL 1989, ch 114, § 1.
10-45-5.6. Exemptions for charitable organization devoted exclusively to relief of poor, distressed or underprivileged.
Any nonprofit charitable organization which devotes its resources exclusively to the relief of the poor, distressed or underprivileged and has been recognized as an exempt organization under § 501(c)(3) of the Internal Revenue Code is specifically exempted from the license fee provided in § 10-45-5.1 and any sales, use or gross receipts taxes imposed on the operation or ownership of coin operated washers and dryers placed and used in living accommodations provided by such organization to the poor, distressed or underprivileged.
Source: SL 1992, ch 90.
10-45-6. Tax on utility services.
There is hereby imposed a tax of four and two-tenths percent upon the gross receipts from sales, furnishing, or service of gas, electricity, and water, including the gross receipts from such sales by any municipal corporation furnishing gas, and electricity, to the public in its proprietary capacity, except as otherwise provided in this chapter, when sold at retail in the State of South Dakota to consumers or users.
Source: SL 1935, ch 205, § 34; SL 1937, ch 253, § 1; SDC 1939, § 57.3201; SL 1941, ch 345; SL 1943, ch 296; SL 1974, ch 97, § 1; SL 1981, ch 102, §§ 2, 3; SL 1987, ch 98, § 6; SL 1988, ch 106, § 1; SL 2016, ch 65, § 4, eff. June 1, 2016; SL 2023, ch 32, § 4.
Effective July 1, 2027
10-45-6. Tax on utility services.
There is hereby imposed a tax of four and one-half percent upon the gross receipts from sales, furnishing, or service of gas, electricity, and water, including the gross receipts from such sales by any municipal corporation furnishing gas, and electricity, to the public in its proprietary capacity, except as otherwise provided in this chapter, when sold at retail in the State of South Dakota to consumers or users.
Source: SL 1935, ch 205, § 34; SL 1937, ch 253, § 1; SDC 1939, § 57.3201; SL 1941, ch 345; SL 1943, ch 296; SL 1974, ch 97, § 1; SL 1981, ch 102, §§ 2, 3; SL 1987, ch 98, § 6; SL 1988, ch 106, § 1; SL 2016, ch 65, § 4, eff. June 1, 2016; SL 2023, ch 32, §§ 4, 19.
10-45-6.1. Tax on intrastate, interstate, or international telecommunications service--Exemptions.
Except as provided in § 10-45-6.2, there is hereby imposed a tax of four and two-tenths percent upon the gross receipts from providing any intrastate, interstate, or international telecommunications service that originates or terminates in this state and that is billed or charged to a service address in this state, or that both originates and terminates in this state. However, the tax imposed by this section does not apply to:
(1) Any eight hundred or eight hundred-type service, unless the service both originates and terminates in this state;
(2) Any sale of a telecommunication service to a provider of telecommunication services, including access service, for use in providing any telecommunication service; or
(3) Any sale of interstate telecommunication service provided to a call center that has been certified by the secretary of revenue to meet the criterion established in § 10-45-6.3 and the call center has provided to the telecommunications service provider an exemption certificate issued by the secretary indicating that it meets the criterion.
If a call center uses an exemption certificate to purchase services not meeting the criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, and interest.
Source: SL 1974, ch 97, § 2; SL 1980, ch 325, § 17; SL 1987, ch 98, § 7; SL 1988, ch 106, § 1; SL 2002, ch 61, § 5; SL 2003, ch 63, § 1, eff. May 1, 2003; SL 2008, ch 52, § 1; SL 2009, ch 47, § 3; SL 2011, ch 1 (Ex. Ord. 11-1), § 35, eff. Apr. 12, 2011; SL 2016, ch 65, § 5, eff. June 1, 2016; SL 2023, ch 32, § 5.
Effective July 1, 2027
10-45-6.1. Tax on intrastate, interstate, or international telecommunications service--Exemptions.
Except as provided in § 10-45-6.2, there is hereby imposed a tax of four and one-half percent upon the gross receipts from providing any intrastate, interstate, or international telecommunications service that originates or terminates in this state and that is billed or charged to a service address in this state, or that both originates and terminates in this state. However, the tax imposed by this section does not apply to:
(1) Any eight hundred or eight hundred type service unless the service both originates and terminates in this state;
(2) Any sale of a telecommunication service to a provider of telecommunication services, including access service, for use in providing any telecommunication service; or
(3) Any sale of interstate telecommunication service provided to a call center that has been certified by the secretary of revenue to meet the criterion established in § 10-45-6.3 and the call center has provided to the telecommunications service provider an exemption certificate issued by the secretary indicating that it meets the criterion.
If a call center uses an exemption certificate to purchase services not meeting the criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, and interest.
Source: SL 1974, ch 97, § 2; SL 1980, ch 325, § 17; SL 1987, ch 98, § 7; SL 1988, ch 106, § 1; SL 2002, ch 61, § 5; SL 2003, ch 63, § 1, eff. May 1, 2003; SL 2008, ch 52, § 1; SL 2009, ch 47, § 3; SL 2011, ch 1 (Ex. Ord. 11-1), § 35, eff. Apr. 12, 2011; SL 2016, ch 65, § 5, eff. June 1, 2016; SL 2023, ch 32, §§ 5, 19.
10-45-6.2. Tax on certain mobile telecommunications services.
There is hereby imposed a tax of four and two-tenths percent upon the gross receipts of mobile telecommunications services, as defined in 4 U.S.C. § 124(7) as of January 1, 2002, that originate and terminate in the same state and are billed to a customer with a place of primary use in this state or are deemed to have originated or been received in this state and to be billed or charged to a service address in this state if the customer's place of primary use is located in this state regardless of where the service actually originates or terminates. Notwithstanding any other provision of this chapter and for purposes of the tax imposed by this section, the tax imposed upon mobile telecommunication services must be administered in accordance with 4 U.S.C. §§ 116-126, as in effect on July 28, 2000.
Source: SL 2002, ch 61, § 1; SL 2003, ch 63, § 4, eff. May 1, 2003; SL 2016, ch 65, § 6, eff. June 1, 2016; SL 2023, ch 32, § 6.
Effective July 1, 2027
10-45-6.2. Tax on certain mobile telecommunications services.
There is hereby imposed a tax of four and one-half percent upon the gross receipts of mobile telecommunications services, as defined in 4 U.S.C. § 124(7) as of January 1, 2002, that originate and terminate in the same state and are billed to a customer with a place of primary use in this state or are deemed to have originated or been received in this state and to be billed or charged to a service address in this state if the customer's place of primary use is located in this state regardless of where the service actually originates or terminates. Notwithstanding any other provision of this chapter and for purposes of the tax imposed by this section, the tax imposed upon mobile telecommunication services shall be administered in accordance with 4 U.S.C. §§ 116-126 as in effect on July 28, 2000.
Source: SL 2002, ch 61, § 1; SL 2003, ch 63, § 4, eff. May 1, 2003; SL 2016, ch 65, § 6, eff. June 1, 2016; SL 2023, ch 32, §§ 6, 19.
10-45-6.3. Call center defined--Exclusions.
As used in § 10-45-6.1, the term, call center, means any physical location where telephone calls are placed, or received, for the purpose of making sales, marketing, customer service, or technical support. The term does not include:
(1) Any location where telephone calls are primarily placed to, or received from, the same taxpayer, or affiliates of the same taxpayer, that owns or operates the location; or
(2) Any insurance, real estate, or brokerage company.
Source: SL 2003, ch 63, § 2.
10-45-7. Tax on room or parking site rentals to transient guests.
There is hereby imposed a tax at the same rate as that imposed upon sales of tangible personal property in this state upon the gross receipts from rentals of rooms or parking sites by lodging establishments or campgrounds received from transient guests. A lodging establishment is any building, structure, property or premise kept, used, maintained, advertised or held out to the public to be a place where sleeping accommodations are furnished to transient guests. A campground is any property or premise kept, used, maintained, advertised or held out to the public to be a place where sites are available for the placing of tents, campers, trailers, mobile homes or other mobile accommodations to transient guests. A transient guest is any person who resides in a lodging establishment or campground less than twenty-eight consecutive days. The provisions of this section do not apply to the casual or occasional rental of a sleeping accommodation or camping site. For the purposes of this section, casual or occasional is the rental of a sleeping accommodation or camping site by any establishment or campground for ten or less days in a calendar year. Any establishment or campground which has a permit or license issued under this chapter, is not offering the rental of sleeping accommodations or camping sites on a casual or occasional basis.
Source: SDC 1939, § 57.3201 as added by SL 1963, ch 444; SL 1976, ch 98; SL 1997, ch 67, § 1.
10-45-7.1. Exemption for lodging house or hotel membership fees.
There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, gross receipts from membership fees paid to any lodging house and hotel membership organization operated for the benefit of its members. However, this exemption does not apply to any membership fee that represents payment for tangible personal property, any product transferred electronically, and services provided by the membership organization.
Source: SL 2001, ch 55, § 1; SL 2008, ch 51, § 11.
10-45-8. Tax on admissions to amusements, athletic contests, or events.
Except as otherwise provided in this chapter, there is imposed a tax of four and two-tenths percent upon the gross receipts from all sales of tickets or admissions to:
(1) Places of amusement;
(2) Athletic contests; or
(3) Events.
Source: SDC 1939, § 57.3201; SL 1941, ch 345; SL 1943, ch 296; SL 1980, ch 325, § 18; SL 1981, ch 102, § 4; SL 1985, ch 87, § 1; SL 1987, ch 98, § 8; SL 1988, ch 106, § 1; SL 2002, ch 64, § 22; SL 2016, ch 65, § 7, eff. June 1, 2016; SL 2023, ch 32, § 7; SL 2024, ch 39, § 1.
Effective July 1, 2027
10-45-8. Tax on admissions to amusements, athletic contests, or events.
Except as otherwise provided in this chapter, there is imposed a tax of four and one-half percent upon the gross receipts from all sales of tickets or admissions to:
(1)Places of amusement;
(2)Athletic contests; or
(3)Events.
Source: SDC 1939, § 57.3201; SL 1941, ch 345; SL 1943, ch 296; SL 1980, ch 325, § 18; SL 1981, ch 102, § 4; SL 1985, ch 87, § 1; SL 1987, ch 98, § 8; SL 1988, ch 106, § 1; SL 2002, ch 64, § 22; SL 2016, ch 65, § 7, eff. June 1, 2016; SL 2023, ch 32, §§ 7, 19; SL 2024, ch 39, § 1.
10-45-8.2. Repealed by SL 2012, ch 67, § 1.
10-45-9. Constitutional and statutory exemptions from taxation.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal property and any product transferred electronically which this state is prohibited from taxing under the Constitution or laws of the United States or under the Constitution or laws of the State of South Dakota.
Source: SL 1935, ch 205, § 34-a; SDC 1939, § 57.3202 (1); SL 1939, ch 269; SL 2008, ch 51, § 12.
10-45-9.1. Exemption of property sold for lease.
Gross receipts from the sale of tangible personal property and any product transferred electronically to a person who intends to lease the property to persons in this state and actually does so are exempted from the provisions of this chapter and the tax imposed by it.
Source: SL 1983, ch 86, § 4; SL 2008, ch 51, § 13; SL 2024, ch 39, § 2.
10-45-10. Exemption of sales to United States, states, municipalities, charities, and Indian tribes.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal property, any product transferred electronically, and services to the United States, to the State of South Dakota or to any other state of the United States or the District of Columbia if the other state provides a reciprocal exemption for South Dakota, to public or municipal corporations of the State of South Dakota or of any other state of the United States or the District of Columbia if the other state provides a reciprocal exemption to South Dakota public or municipal corporations, to any nonprofit charitable organization maintaining a physical location within this state which devotes its resources exclusively to the relief of the poor, distressed or underprivileged, and has been recognized as an exempt organization under § 501(c)(3) of the Internal Revenue Code, or to any Indian tribe.
Source: SL 1935, ch 205, § 34-a; SDC 1939, § 57.3202 (5); SL 1939, ch 269; SL 1974, ch 101, § 1; SL 1975, ch 104; SL 1979, ch 84, § 8; SL 1983, ch 88, § 1; SL 1984, ch 87; SL 1987, ch 100; SL 2008, ch 51, § 14; SL 2011, ch 57, § 1.
10-45-10.3. Exemption of freeport merchandise and stocks of merchandise brought as foreign or domestic merchandise into foreign trade zone--Stocks of merchandise defined--Application.
There is exempted from the provisions of this chapter and from the computation of the tax imposed by it, freeport merchandise and stocks of merchandise brought as foreign or domestic merchandise into a foreign trade zone. For the purposes of this section, stocks of merchandise is personal property which is held primarily for sale and not subject to annual depreciation. However, the exemption only applies if written evidence of the contract of sale is retained, and such contract indicates that the merchandise is to be shipped in international commerce to a point outside the United States not to be returned to a point within the United States.
Source: SL 1988, ch 109, § 1; SL 2001, ch 56, § 2; SL 2004, ch 93, § 1.
10-45-10.4. Exemption of handling fees paid by religious organizations to relief agencies for food distribution through giveaway programs.
There are specifically exempted from the provisions of this chapter and the computation of the amount of tax imposed by it, the gross receipts from the handling fee paid by a religious organization recognized as an exempt organization under section 501(c)(3) of the Internal Revenue Code to an approved relief agency recognized as an exempt organization pursuant to § 10-45-10 for the distribution of food which is used for the assistance or relief to the poor, distressed, or underprivileged through a food giveaway program.
Source: SL 2012, ch 68, § 1.
10-45-11. Exemption of fuel sales otherwise taxed.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of gasoline, motor fuel, and special fuel subject to tax under chapter 10-47B.
Source: SDC 1939, § 57.3202 (6); SL 1939, ch 269; SL 1949, ch 418; SL 1969, ch 267, § 3; SL 1970, ch 74, § 2; SL 1979, ch 87, § 4; SL 1987, ch 29, § 71; ch 101; SL 1987, ch 102, § 1; SL 1989, ch 117; SL 2001, ch 56, § 3.
10-45-11.1. Exemption of goods and services furnished to meet warranty obligation without charge.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from furnishing goods or services to the purchaser or the purchaser's successor in interest of tangible personal property and any product transferred electronically to fulfill a warranty obligation of the manufacturer to the extent that the goods or services are not charged to the purchaser or the purchaser's successor in interest.
Source: SL 1971, ch 79; SL 2008, ch 51, § 15.
10-45-11.2. Exemption of sales of motor vehicles exempt from excise tax.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of motor vehicles exempt from the motor vehicle excise tax pursuant to § 32-5B-2, with the exception of farm vehicles as described pursuant to the provisions of § 32-5-1.3.
Source: SL 1987, ch 103, § 1; SL 1988, ch 110, § 1; SL 2012, ch 67, § 3; SL 2015, ch 68, § 1.
10-45-12.1. Services specifically exempt from tax.
The following services enumerated in the Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and 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; services 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.
Source: SL 1979, ch 84, § 11; SL 1979, ch 306, § 2; SL 1980, ch 97; SL 1981, ch 103, § 1; SL 1983, ch 86, § 2; SL 1986, ch 100, § 2; SL 1987, ch 104; SL 1988, ch 108, § 3; SL 1988, ch 111; SL 1988, ch 112, § 1; SL 1989, ch 104, § 2; SL 1991, ch 101; SL 1991, ch 108, § 5; SL 1995, ch 68, § 12; SL 1996, ch 83, § 9; SL 1998, ch 71, § 5; SL 2001, ch 56, § 4; SL 2003, ch 63, § 3; SL 2004, ch 94, § 1.
10-45-12.2. Exemption of engineering, architectural, and surveying services.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by §§ 10-45-4 and 10-45-5, the gross receipts from engineering, architectural, and surveying services (group no. 871, Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President) rendered for a project entirely outside this state.
Source: SL 1982, ch 111; SL 1988, ch 108, § 4.
10-45-12.4. Certain services provided to rural water system by wholly owned cooperative or nonprofit corporation exempt from tax.
There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, gross receipts from management, billing, bookkeeping, administrative, and related services provided to a rural water system by any cooperative or nonprofit corporation which is wholly owned by the water systems receiving such services.
Source: SL 1986, ch 102.
10-45-12.5. Exemption of certain sales commissions.
Unless otherwise specifically subject to tax, the gross receipts resulting from fees or commissions received for rendering a service which provides for the sale of tangible personal property, any product transferred electronically, or services is exempt from the tax imposed by this chapter.
Source: SL 1988, ch 113, § 1; SL 2008, ch 51, § 16.
10-45-12.6. Exemption for credit services by credit bureaus to certain financial institutions.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of credit services by credit bureaus to financial institutions as defined in § 10-43-1, which financial institutions are paying taxes pursuant to the provisions of chapter 10-43.
Source: SL 1991, ch 102, § 1.
10-45-12.7. Exemption for gross receipts of person officiating amateur sporting event.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts for officiating services provided at an amateur sporting event.
Source: SL 2005, ch 76, § 1; SL 2024, ch 39, § 7.
10-45-13. Exemption of receipts used for civic and nonprofit associations and purposes.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from the following:
(1) Sales of tickets or admissions to the grounds and grandstand attractions of state, county, district, regional, and local fairs;
(2) Admissions to nonprofit historic sites and repertory theater performances operated by nonprofit organizations;
(3) Admissions to community operated celebrations and shows sponsored by a chamber of commerce or other similar nonprofit organization if the county or municipality in which the activity takes place officially sponsors the activity and no charge is made to the operators of the celebration or show for the use of county, city or town facilities or services;
(4) Admissions to events or receipts from activities sponsored and operated by colleges or vocational schools or elementary or high schools or related clubs or supporting organizations approved or supervised by a school or college when the entire net proceeds are spent for educational purposes and any associations of them and receipts from tangible personal property or any product transferred electronically sold at such events. However, receipts from tangible personal property or any product transferred electronically sold at such events or activities are included in the measure of sales tax at the time of purchase by the college or school or related club or supporting organization;
(5) Religious, benevolent, fraternal, youth association or charitable activities, including any bingo or lottery conducted pursuant to § 22-25-25, where the entire amount of such receipts after deducting all costs directly related to the conduct of such activities is expended for religious, benevolent, fraternal, youth association or charitable purposes, and, except for any bingo or lottery, the receipts are not the result of engaging in business for more than three consecutive days. For the purposes of determining whether this business has been engaged in for more than three days, days necessary to set up, organize, prepare for, take down, or disassemble the business or activity may not be construed as days engaged in business. However, receipts from tangible personal property, any product transferred electronically, or services purchased for use in the activity are included in the measure of sales tax;
(6) Sales of tangible personal property or any product transferred electronically when the net receipts therefrom are used primarily for the restoration or maintenance of the Governor's mansion and capitol grounds;
(7) Any charge or entry fee made to persons for engaging in participatory events limited to tournaments, contests and league activities. However, receipts from tangible personal property, any product transferred electronically, or services purchased for use in tournaments, contests and league activities shall be included in the measure of the tax imposed by this chapter;
(8) Admissions to events or receipts from activities sponsored and operated by county or municipal historical societies or centennial committees when the entire net proceeds are spent for centennial celebration purposes. However, receipts from tangible personal property, any product transferred electronically, or services purchased for use in the activity are included in the measure of sales tax;
(9) Religious, benevolent, fraternal, youth association or charitable activities conducted at county fairs, if the entire amount of such receipts after deducting all costs directly related to the conduct of such activities is expended for religious, benevolent, fraternal, youth association or charitable purposes, and the receipts are not the result of engaging in business for more than five consecutive days. However, receipts from tangible personal property, any product transferred electronically, or services purchased for use in the activity are included in the measure of sales tax;
(10) Admissions to circus performances sponsored or operated by religious, benevolent, fraternal or youth associations, if the entire amount of the receipts after deducting all costs directly related to the conduct of the circus performances is expended for religious, benevolent, fraternal, youth associations or charitable purposes;
(11) Admissions to events or receipts from activities sponsored and operated by religious, benevolent, or charitable organizations for a period not to exceed thirty days in any calendar year, if the entire amount of the receipts after deducting all costs directly related to the conduct of the event or activity is expended for the benefit of homeless persons.
Source: SDC 1939, § 57.3202 (4); SL 1939, ch 269; SL 1961, ch 446; SL 1968, ch 259; SL 1976, ch 99, § 2; SL 1978, ch 86; SL 1983, ch 89; SL 1988, ch 114; SL 1988, ch 115; SL 1989, ch 105, §§ 1, 2; SL 1990, ch 90; SL 1991, ch 103; SL 1992, ch 60, § 2; SL 1992, ch 93, § 1; SL 2000, ch 60, § 1; SL 2008, ch 51, § 17; SL 2012, ch 69, § 1.
10-45-13.1. Exemption of membership organizations.
Membership organizations, major group 86, as enumerated in the Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President, are exempt from the tax imposed by this chapter on receipts from sales of services by them and their membership fees. This exemption does not apply to the tax imposed upon the gross receipts of sales of tangible personal property or any product transferred electronically by such organizations. This section does not exempt the gross receipts of a retailer which are the result of sales to organizations in major group 86 or exempt such organizations from payment of use tax on goods and services used in the conduct of their activities.
Source: SL 1981, ch 104; SL 1988, ch 108, § 5; SL 2008, ch 51, § 18.
10-45-13.2. Exemption of fair market value of personal property or service given without charge to exempt organization.
There are specifically exempted from the provisions of this chapter and the computation of the tax imposed by it, the fair market value of any tangible personal property, product transferred electronically, or service given without charge to an institution, organization, or group exempt from the tax imposed by this chapter.
Source: SL 1987, ch 105, § 1; SL 2008, ch 51, § 19.
10-45-13.3. Exemption of lottery tickets.
There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts from the sale of lottery tickets made as part of a lottery operated by this state.
Source: SL 1987, ch 313, § 39.
10-45-13.4. Exemption of gross receipts from library copying charges.
There are specifically exempted from the provisions of this chapter and the computation of the tax imposed by it, gross receipts from library copying charges.
Source: SL 1990, ch 86.
10-45-13.5. Exemption of receipts received by the state and political subdivisions from management services provided to nonprofit entity.
There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, the gross receipts received by the State of South Dakota and any of its political subdivisions including multi-county planning and development districts, established pursuant to Executive Order 70-7, or its successor, from management services provided to a revolving loan fund operated by a nonprofit entity.
Source: SL 2005, ch 75, § 1.
10-45-14. Exemption of sales to educational institutions and hospitals--Purchases for members or employees taxable--Motor vehicle registration fee--Lists maintained by exempt institutions.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal property, any product transferred electronically, and services to and for use by religious educational institutions, private educational institutions currently recognized as exempt under section 501(c)(3) of the Internal Revenue Code as in effect on January 1, 2011, and nonprofit, charitable hospitals when purchases are made by authorized officials, payment made from the institution funds and title to the property retained in the name of such institution. For the purposes of this section, a private educational institution shall be defined as an institution currently recognized as exempt under section 501(c)(3) of the Internal Revenue Code as in effect on January 1, 2011, maintaining a campus physically located within this state; and accredited by the South Dakota Department of Education or the North Central Association of Colleges and Schools. For the purposes of this section, a religious educational institution shall be defined as an institution currently recognized as exempt under section 501(c)(3) of the Internal Revenue Code as in effect on January 1, 2011, that maintains a campus physically located within this state.
This exemption does not extend to sales to or purchases of tangible personal property or any product transferred electronically for the personal use of officials, members or employees of such institutions or to sales to or purchases of tangible personal property or any product transferred electronically used in the operation of a taxable retail business.
The exemption provided in this section does not, in any manner, relieve the institution from the payment of the additional and further license fee imposed on the registration of motor vehicles.
Each institution claiming this exemption shall prepare and maintain a list of all purchases on which the exemption was claimed, fully itemized, showing name and address of vendors, description of property purchased, date or dates of purchase, purchase price, and brief explanation of use or intended use.
Source: SDC 1939, § 57.3202 (8) as added by SL 1951, ch 445; SL 1983, ch 96, § 1; SL 1988, ch 116; SL 1995, ch 68, § 13; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2008, ch 51, § 20; SL 2011, ch 57, § 2.
10-45-14.2. Ink and newsprint exempt when used to produce shoppers' guides--Shoppers' guides defined.
Ink and newsprint when used in the production of shoppers' guides are hereby exempt from the tax imposed under this chapter.
For the purposes of this section the term, shoppers' guide, includes for numerous advertisers advertising publications whose advertisements are solicited from the general public and whose publications are for free distribution to the general public and are published regularly at least once a month, consisting of printed sheets containing advertising, bearing a date of issue, and devoted to advertising of general interest.
Source: SL 1977, ch 100, § 1.
10-45-14.4. Packaging and container materials as tax exempt raw material.
Containers, labels, cartons, packing cases, wrapping paper, twine, glue, bags, bottles, shipping cases, wrapping film, strapping, rope, tape, cans, lids, boxes, pads, dividers, stockinettes, casings, and similar articles and receptacles used or consumed by manufacturers, processors, or fabricators are raw material within the meaning of § 10-46-9 and are not subject to sales or use tax.
Source: SL 1982, ch 114.
10-45-14.5. Packaging and container materials sold to retailers exempt.
There are specifically exempted from the provisions of this chapter, and from the computation of tax imposed by it, gross receipts from the sale of paper and plastic bags, wrapping paper, twine, tape, and similar articles sold to retailers licensed under this chapter if the retailer uses the articles as wrappers or containers to hold other tangible personal property sold by the retailer and subject to sales or use tax and the articles are supplied free by the retailer as a convenience to the customer.
Source: SL 1984, ch 85, § 1.
10-45-14.6. Exemption of hospital meals paid for by public entity.
There are specifically exempted from the provisions of this chapter and the computation of the amount of tax imposed by it, the gross receipts from the sale of meals to inpatients of hospitals if the meals are paid for, by law or by contract, by the United States, this state or a political subdivision, including, but not limited to, meals provided to medicare, medicaid, Tricare, Indian health service, or county poor relief patients.
Source: SL 1985, ch 86; SL 2024, ch 39, § 3.
10-45-14.7. Exemption of authorized purchases made with food stamps.
There are hereby specifically exempted from the tax imposed by this chapter the gross receipts resulting from authorized purchases made with food stamps under the provision of the Food Stamp Act of 1977 (P.L. 95-113).
Source: SL 1987, ch 106, § 1.
10-45-14.8. Exemption of authorized purchases of food.
There are hereby specifically exempted from the tax imposed by this chapter the gross receipts resulting from authorized purchases of food made under Section 17(c) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(c)).
Source: SL 1987, ch 106, § 3.
10-45-14.9. Exemption of certain insulin sales.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of insulin, to the extent used by humans, that is not sold by prescription.
Source: SL 2003, ch 61, § 5.
10-45-14.10. Exemption of certain drugs.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of drugs as defined by rule promulgated by the secretary of revenue pursuant to chapter 1-26 to the extent used by humans, if the drugs are prescribed by prescription, dispensed, or administered by a physician, chiropractor, optometrist, dentist, podiatrist, or audiologist.
Source: SL 2003, ch 61, § 6; SL 2011, ch 1 (Ex. Ord. 11-1), § 35, eff. Apr. 12, 2011.
10-45-14.11. Exemption of certain durable medical equipment and prosthetic devices.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of durable medical equipment, mobility enhancing equipment, and prosthetic devices as defined by rule promulgated by the secretary of revenue pursuant to chapter 1-26 to the extent used by humans, if the durable medical equipment, mobility enhancing equipment, and prosthetic devices are prescribed by prescription by a physician, chiropractor, optometrist, dentist, podiatrist, or audiologist.
Source: SL 2003, ch 61, § 7; SL 2011, ch 1 (Ex. Ord. 11-1), § 35, eff. Apr. 12, 2011.
10-45-14.12. Exemption of certain medical devices.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of any medical device, as that term is defined in this section, to the extent used by humans, if the medical device is prescribed by prescription by a physician, chiropractor, optometrist, dentist, podiatrist, or audiologist. The term, medical device, means any instrument, apparatus, implement, contrivance, or other similar or related article, including a component, part, or accessory, that is prescribed for use on a single patient and that is:
(1) Recognized in the official National Formulary, or the United States Pharmacopoeia, or any supplement to them;
(2) Intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, detection, or prevention of disease, of the human body; or
(3) Intended to affect the structure or any function of the human body, and that does not achieve any of its primary intended purposes through chemical action within or on the human body and that is not dependent upon being metabolized for the achievement of any of its primary intended purposes.
A medical device is not durable medical equipment, mobility enhancing equipment, or a prosthetic device.
Source: SL 2003, ch 61, § 8.
10-45-15. Exemption of seed used for agricultural purposes.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of seed legumes, seed grasses, and seed grains, when twenty-five pounds or more are sold in a single sale to be used exclusively for agricultural purposes.
Source: SDC 1939, § 57.3202 (11) as added by SL 1965, ch 289, § 1.
10-45-16. Exemption of commercial fertilizer used for agricultural purposes.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of commercial fertilizers, either liquid or solid, when five hundred pounds or more are sold in a single sale to be used exclusively for agricultural purposes.
Source: SDC 1939, § 57.3202 (10) as added by SL 1964, ch 215.
10-45-16.1. Exemption of pesticides and related products or substances used for agricultural purposes--Use of funds from tax on endoparasiticides and ectoparasiticides.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of pesticides, as defined in § 38-20A-1, to be used exclusively by the purchaser for agricultural purposes. Any product or substance to be used in conjunction with the application or use of pesticides for agricultural purposes is also exempt. The products or substances include adjuvants, surfactants, ammonium sulfate, inoculants, drift retardants, water conditioners, seed treatments, foam markers, and foam dyes. Equipment, other than farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes for the application of pesticides and related products and substances is not exempt. The tax imposed by this chapter on endoparasiticides and ectoparasiticides shall be used for veterinary student tuition grants, for South Dakota residents in the South Dakota State University veterinary program, South Dakota State University veterinary program operations, and the operations and activities conducted by the State Animal Disease Research and Diagnostic Laboratory established in § 13-58-13. The amount of funding initially dedicated to establish the tuition grants and South Dakota State University veterinary program operations shall be based upon the difference between in-state and out-of-state tuition for veterinary student grants designated for South Dakota students at the Iowa State University veterinary program in fiscal year 2020, of which at least seventy-five percent shall be used to fund tuition grants for South Dakota residents in the program. The portion designated for tuition grants shall be adjusted annually based on the difference between the prior year and current year tuition rate for veterinary program at the University of Minnesota, or other future accredited institution of higher education collaborating with South Dakota State University veterinary program for final degree completion. An additional amount of two hundred fifty thousand dollars shall be used to support the operations of the laboratory. The funding shall be budgeted and expended through the general appropriations act pursuant to chapter 4-7.
Source: SL 1971, ch 78; SL 1989, ch 107, § 1; SL 1993, ch 48, § 13; SL 1995, ch 69; SL 2005, ch 73, § 1; SL 2006, ch 58, § 21, eff. Mar. 2, 2006; SL 2018, ch 64, § 1; SL 2019, ch 88, § 2.
10-45-16.2. Exemption of gross receipts from rental of devices used to apply agricultural fertilizers and pesticides.
There are specifically exempted from the tax imposed by this chapter, gross receipts from the rental of devices primarily used to apply fertilizers and pesticides, as defined in § 38-20A-1, for agricultural purposes, if sales tax or use tax was paid upon the original purchase of the device.
Source: SL 1986, ch 103; SL 2006, ch 48, § 1.
10-45-16.3. Exemption of gross receipts from rental of agricultural devices owned by conservation district.
There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, gross receipts from the rental of devices used primarily for agricultural purposes if such devices are owned by a conservation district organized pursuant to chapter 38-8.
Source: SL 1988, ch 118.
10-45-18. Exemption of sales of livestock, poultry, ostriches, emus, or rheas other than ultimate retail sale.
No gross receipts from sales of livestock or live poultry, ostriches, emus, or rheas, if such sales are a part of a series of transactions incident to producing a finished product intended to be offered for an ultimate retail sale, are taxable under this chapter, except that an ultimate retail sale interrupting the series of transactions with an intended final use or consumption is taxable.
Source: SL 1951, ch 461; SDC Supp 1960, § 57.3202-1; SL 1992, ch 94, § 1.
10-45-18.1. Exemption of gross receipts from sale of live gamebirds by producer to certain nonprofit organizations.
There are specifically exempted from the provisions of this chapter and the computation of the tax imposed by it, the gross receipts from the sale of live gamebirds sold by the producer to nonprofit organizations which release such birds or to commercial hunting operators who charge fees to hunt such birds.
Source: SL 1989, ch 108, § 1.
10-45-18.2. Exemption of gross receipts from sales of certain animals.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of live cattle, buffalo, sheep, goats, swine, poultry, ostriches, emus, rheas, and domesticated fur-bearing animals defined in chapter 40-35, used or to be used as breeding or production stock, and horses and other animals within the family equidae. The term, poultry, does not include any fowl other than domestic fowl kept and raised for the market or the production of eggs for human consumption.
Source: SL 1989, ch 113, § 1; SL 1992, ch 94, § 2.
10-45-18.3. Exemption of gross receipts from sale of feed and bedding for certain animals.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of feed and bedding for cattle, buffalo, sheep, goats, swine, pheasants, partridges, quail, poultry, ostriches, emus, rheas, and domesticated fur-bearing animals defined in chapter 40-35, if such feed or bedding is used by farmers or ranchers who are regularly engaged in the business of raising and feeding such animals, or producing milk for sale for human consumption, and horses and other animals within the family equidae. The term, poultry, does not include any fowl other than domestic fowl kept and raised for the market or the production of eggs for human consumption. The term, bedding, only includes straw, corn stover, and bean straw.
Source: SL 1989, ch 113, § 2; SL 1992, ch 94, § 3; SL 2006, ch 49, § 1; SL 2012, ch 70, § 1.
10-45-18.4. Exemption for sale of certain live nondomestic animals.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of any live nondomestic animal regulated by the Animal Industry Board pursuant to § 40-3-26, if the animal is to be used by a farmer or rancher who is regularly engaged in the breeding and raising of such animals.
Source: SL 1993, ch 311, § 10.
10-45-18.5. Exemption for sale of feed for certain nondomestic animals.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of feed for any nondomestic animal regulated by the Animal Industry Board pursuant to § 40-3-26, if the feed is to be used by a farmer or rancher who is regularly engaged in the breeding and raising of such animals.
Source: SL 1993, ch 311, § 11.
10-45-18.6. Exemption for sale of swine or cattle semen.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of swine semen and cattle semen to be used for agricultural purposes.
Source: SL 2006, ch 50, § 1.
10-45-19. Exemption of fuel used for agricultural or railroad purposes.
Motor fuel, including kerosene, tractor fuel, liquefied petroleum gas, natural and artificial gas, diesel fuels, and distillate, when used for agricultural or railroad purposes, is exempt from the tax imposed by this chapter.
For the purposes of this section, agricultural purposes does not include the lighting or heating of any farm residence.
For the purposes of this section, railroad purposes includes only locomotives or track motor cars being operated on railroad tracks in road service in this state.
Source: SL 1945, ch 342, § 1; SL 1951, ch 457, §§ 1, 2; SL 1959, ch 439; SDC Supp 1960, § 57.3202-2; SL 1974, ch 102; SL 1985, ch 89, § 1; SL 1994, ch 96, § 2; SL 2012, ch 67, § 5.
10-45-19.1. Power charges for irrigation pumps exempt.
There are hereby specifically exempted from the provisions of this chapter and from the amount of tax imposed by it, gross receipts from the sale of electricity used to power irrigation pumps and the gross receipts from the horsepower charge on electric motors powering irrigation pumps whenever the purchaser has made the purchase exclusively for agricultural purposes.
Source: SL 1979, ch 85, § 1.
10-45-19.3. Exemption of bulk water for domestic use.
There are specifically exempted from the provisions of this chapter and from the computation of tax imposed by it, the gross receipts from the sales of bulk water which are delivered for domestic use.
Source: SL 1983, ch 91, § 2.
10-45-20. Exemptions applied to taxable services.
The exemptions from sales tax relative to sales of tangible personal property shall apply to services included in §§ 10-45-4 and 10-45-5.
Source: SL 1965, ch 296, § 3.
10-45-20.1. Exemption of payments between members of controlled group--Exception.
Payments made by one member of the controlled group to another member of a controlled group which represent an allocation, reimbursement, or charge for services provided by or rendered by the members of the controlled group are specifically exempted from the provisions of this chapter and the computation of the tax imposed by it. The exemption provided in this section does not apply to the lease of tangible personal property or any product transferred electronically unless the sales or use tax has been paid on the property by the lessor.
Source: SL 1983, ch 93, § 1; SL 1989, ch 109, § 1; SL 2004, ch 95, § 1; SL 2008, ch 51, § 21.
10-45-20.2. Exemption of payments between members of controlled group--Reimbursement for third-party services to group.
Payments made by one member of a controlled group to another member of a controlled group which represent an allocation, reimbursement or charge for third-party services rendered to the controlled group and upon which a sales or use tax has been paid may not be considered as gross receipts under this chapter.
Source: SL 1983, ch 93, § 2.
10-45-20.3. Controlled group defined.
For the purposes of this chapter, a controlled group consists of any corporations or other entities eligible to file a consolidated federal income tax return under the Internal Revenue Code as in effect on January 1, 2002, or entitled to only a single surtax exemption for federal corporate income tax purposes under the Internal Revenue Code as in effect on January 1, 2002, and includes a controlled group of corporations as defined at 26 U.S.C. § 1563 as in effect on January 1, 2002. A controlled group also consists of any subchapter S corporation, limited liability company, limited liability partnership, general partnership, or limited partnership with at least eighty percent common ownership as if the entity was converted to or taxed as a subchapter C corporation under the Internal Revenue Code as in effect on January 1, 2002.
Source: SL 1983, ch 93, § 3; SL 1989, ch 109, § 2; SL 2002, ch 62, § 1.
10-45-20.5. Exemption of gross receipts from sale of services rendered--Exception.
There are specifically exempted from the provisions of this chapter and the computation of the tax imposed by it, gross receipts from the sale of services rendered by a related corporation as defined in subdivision 10-43-1(11) for use by a financial institution as defined in subdivision 10-43-1(4) or on any service rendered by a financial institution as defined in subdivision 10-43-1(4) for use by a related corporation as defined in subdivision 10-43-1(11). For the purposes of this section, the term, related corporation, includes a corporation which together with the financial institution is part of a controlled group of corporations as defined in 26 U.S.C. § 1563 as in effect on January 1, 1989, except that the eighty percent ownership requirements set forth in 26 U.S.C. § 1563(a)(2)(A) for a brother-sister controlled group are reduced to fifty-one percent. The exemption provided in this section does not apply to the lease of tangible personal property or any product transferred electronically unless the sales or use tax has been paid on the property by the lessor.
Source: SL 1986, ch 101; SL 1989, ch 110, § 1; SL 2004, ch 95, § 2; SL 2008, ch 51, § 22.
10-45-20.6. Exemption of gross receipts from sale of certain replacement parts.
There are exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts from the sale of replacement parts that are sold to retailers and which will be installed in tangible personal property that will ultimately be for resale.
Source: SL 1989, ch 111, § 1.
10-45-21. Tax additional to other occupation and privilege taxes.
The taxes imposed under this chapter shall be in addition to all other occupation or privilege taxes imposed by the State of South Dakota, or by any municipal corporation or political subdivision thereof, unless otherwise specifically exempted by this chapter.
Source: SL 1935, ch 205, § 44; SDC 1939, § 57.3102.
10-45-22. Addition of tax to price of product or service.
Retailers may add the tax imposed by this chapter to the price of their product or service as provided by law. If no provision is made, the average equivalent of the tax may be added. Any person or retailer subject to taxation under this chapter may add the tax under this chapter, or the average equivalent thereof, to his price or charge.
Source: SL 1935, ch 205, § 34; SL 1937, ch 252, § 1; SDC 1939, §§ 57.3304, 57.3305; SL 1965, ch 296, § 4; SL 1967, ch 329, § 3; SL 1982, ch 86, § 34; SL 1983, ch 90, § 1.
10-45-23. Schedule for collection of tax from consumer.
The schedules for collection of the tax imposed by this chapter and chapter 10-52 shall be established in rule by the secretary of revenue pursuant to chapter 1-26. The schedules established by rule shall spread the tax proportionately on fractions of dollars.
Source: SL 1965, ch 288, § 2; SL 1969, ch 267, § 2; SL 1970, ch 168, § 3; SL 1973, ch 62, § 1; SL 1978, ch 72, § 38; SL 1979, ch 84, §§ 2, 4; SL 1980, ch 325, § 20; SL 1987, ch 98, § 12; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-24. Application for retailer permit--Contents and execution--Application for statewide permit--Exceptions.
Each retailer or person engaging in a business in this state whose receipts are subject to sales tax shall file with the Department of Revenue, an application for a permit. Each application shall be made on a form prescribed by the secretary of revenue and shall require the name under which the applicant transacts or intends to transact business, the location of each business, and other information as the secretary of revenue may require. The applicant shall have a permit for each place of business, unless the secretary of revenue grants a request for a statewide permit. A statewide permit may be granted if the applicant demonstrates the ability to comply with the filing, auditing, and record-keeping requirements specified in rules promulgated pursuant to § 10-45-47.1 for each location specified in the application.
Any seller registering under the agreement as defined in § 10-45C-1 shall be registered in this state, provided this state has entered into the agreement as provided in § 10-45C-3. Any seller who is registered under such agreement may cancel its registration at any time, but is liable for remitting any sales tax previously collected.
Source: SDC 1939, § 57.3301; SL 1967, ch 329, § 1; SL 1972, ch 66, § 1; SL 2000, ch 61, § 1; SL 2002, ch 64, § 23; SL 2003, ch 61, § 9; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-25. Issuance of retailer permit--Limited to person and place designated--Display in place of business--Effective until canceled or revoked.
The secretary of revenue shall grant and issue to each applicant a permit for each place of business within the state, unless a statewide permit is granted. If a statewide permit is granted, the secretary of revenue shall issue a copy of the statewide permit for each place of business within the state. A permit is not assignable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. The permit shall at all times be conspicuously displayed at the place for which issued. Each permit is valid and effective without further payment of fees until canceled or revoked.
Source: SDC 1939, § 57.3301; SL 1967, ch 329, § 1; SL 1972, ch 66, § 2; SL 2000, ch 61, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-26. Refusal of permit to delinquent taxpayer--Bond to secure payment of tax.
The secretary of revenue may, at his discretion, refuse to issue a permit to any person who is delinquent in payment of occupation taxes levied by the State of South Dakota. He may also, in his discretion, require an applicant to furnish a bond to the state, or other adequate security, as security for payment of any sales tax that may become due, or require a bond or security as a condition precedent to remaining in business as a retailer.
Source: SDC 1939, § 57.3301; SL 1967, ch 329, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-27.2. Collection allowance credit for collecting sales tax.
Any person required to file a return and remit the tax imposed by chapter 10-45, who holds a license issued pursuant to chapter 10-45, who timely files the return due, and who timely remits the tax due, is allowed, as compensation for the expense of collecting and paying the tax, a credit equal to one and one-half percent of the gross amount of the tax due. However, the credit may not exceed seventy dollars per return period.
If a person is required to file a return and to remit tax more than once within a thirty day period, the collection allowance credit may not exceed seventy dollars for all returns filed and all remittances made within the thirty day period.
The collection allowance credit authorized by this section only applies to taxes reported on the sales and use tax return, including the taxes imposed by chapters 10-45, 10-45D, 10-46, 10-46E, 10-52, 10-52A, 10-58, and 10-33A, and §§ 32-5B-20 and 10-62-2.
The collection allowance credit authorized by this section shall be granted for any return to be filed and for any tax to be remitted after January 1, 2014.
The collection allowance credit authorized by this section shall only be granted to a person who timely files the return due by electronic means and who timely remits the tax due by electronic means.
For any tax collected by the department on behalf of another entity, upon which the collection allowance credit is calculated, the entities shall negotiate in good faith to share in the payment of the collection allowance credit. The department may implement such allocation of collection allowance credit directly or through the adjustment of any administrative fee charged pursuant to § 10-59-52.
No person that has selected a certified service provider as its agent as set forth in § 10-45C-1 is entitled to the collection allowance credit authorized by this section if the certified service provider receives a monetary allowance as provided by the Streamlined Sales and Use Tax Agreement authorized by chapter 10-45C for performing the retailer's sales and use tax functions in this state.
No collection allowance credit authorized by this section may be granted to any person who has outstanding tax returns due to the department or who has outstanding tax remittances due to the department.
Source: SL 2006, ch 51, § 1; SL 2013, ch 57, § 1.
10-45-27.3. Filing return and remitting tax--Time for filing and remittance--Extension--Penalty for untimely return or remittance.
Any person who holds a license issued pursuant to this chapter or who is a person whose receipts are subject to the tax imposed by this chapter shall, except as otherwise provided in this section, file a return, and pay any tax due, to the Department of Revenue on or before the twentieth day of the month following each monthly period. The return shall be filed on forms prescribed and furnished by the department.
If the person remits the tax by electronic transfer to the state, the person shall file the return by electronic means on or before the twentieth day of the month following each period and remit the tax on or before the twenty-fifth day of the month following each period.
The secretary may require or allow a person to file a return, and pay any tax due, on a basis other than monthly. The return and remittance is due the twentieth day of the month following the reporting period or at a time otherwise determined by the secretary.
The secretary may grant an extension of not more than five days for filing a return and remittance. However, the secretary may grant an extension for remitting the tax to a qualified business as provided in §§ 10-45-99 to 10-45-107, inclusive, for six months.
Unless an extension is granted, penalty or interest under § 10-59-6 shall be paid if a return or remittance is not made on time.
Source: SL 2007, ch 65, § 3; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2017, ch 65, § 1.
10-45-29. Deduction allowed for sales refunds.
Refunds made by a retailer during the reporting period shall be allowed as a deduction in case the retailer included the receipts, for which a refund is made, in the net taxable sales or has previously paid the sales tax.
Source: SDC 1939, § 57.3310 as amended by SL 1967, ch 329, § 7.
10-45-29.1. Deduction allowed attorneys and accountants for amounts spent on behalf of clients.
In determining the amount of tax due under this chapter, a person licensed pursuant to chapter 16-16 and a person licensed pursuant to chapter 36-20B may deduct from gross receipts amounts which represent charges to clients for tangible personal property, any product transferred electronically, or services purchased by the attorney or accountant on behalf of a client. However, the sale of the property or service to the attorney or accountant is not a sale for resale if this deduction is taken. This deduction may only be taken if the amount to be deducted represents an expense specifically incurred for a particular client and the amount is itemized and separately billed as a reimbursable expense by the attorney or accountant.
Source: SL 1983, ch 94; SL 1984, ch 254, §§ 1-31; SL 2008, ch 51, § 23; SL 2010, ch 57, § 1.
10-45-30. Bad debts--Deduction from amount upon which tax is calculated--Return deduction allowed--Credit or refund.
For purposes of this chapter, a bad debt means the same as the term is defined at 26 U.S.C. § 166 as of January 1, 2005, and is any portion of the purchase price of a transaction that a seller has reported as taxable and for which the seller or any party related to the seller within the meaning of section 267 or 707 of the Internal Revenue Code (related party), as of January 1, 2003, or any disregarded entity for federal income tax purposes that is owned by the seller or a related party, has written off as uncollectible for federal income tax purposes. In computing the amount of tax due, a seller may deduct bad debts from the total amount upon which the tax is calculated for any return. Any deduction taken or refund paid which is attributed to bad debts may not include interest. Bad debts include worthless checks, worthless credit card payments, and uncollectible credit accounts. Bad debts do not include financing charges or interest, sales or use taxes charged on the purchase price, uncollectible amounts on property that remain in the possession of the seller until the full purchase price is paid, expenses incurred in attempting to collect any debt, debts sold, or assigned to unrelated third parties for collection, and repossessed property. No bad debt deduction may be claimed by any person that has purchased accounts receivable for collection unless the person is a successor that has acquired the entire business of the seller that incurred the bad debt, the person is a related party, or the person is a disregarded entity for federal income tax purposes that is owned by the seller or a related party.
A bad debt may be deducted on the return for the period during which the bad debt is written off as uncollectible in the claimant's books and records and is eligible to be deducted for federal income tax purposes. For purposes of this section, a claimant who is not required to file federal income tax returns may deduct a bad debt on a return filed for the period in which the bad debt is written off as uncollectible in the claimant's books and records and would be eligible for a bad debt deduction for federal income tax purposes if the claimant was required to file a federal income tax return. If a deduction is taken for a bad debt and the seller subsequently collects the debt in whole or in part, the tax on the amount so collected shall be paid and reported on the next return due after the collection. A seller may allocate its bad debts among states if the books and records of the seller claiming the bad debt can support such allocation.
If a seller's amount of bad debt exceeds the amount of taxable sales for the period during which the bad debt is written off, the seller may obtain a credit or refund of tax on any amount of bad debt as provided in chapter 10-59. However, a credit or refund under this paragraph may not include interest.
If a seller's filing responsibilities have been assumed by a certified service provider as defined in § 10-45C-1, the service provider may claim, on behalf of the seller, any bad debt allowance provided by this section. The service provider shall credit or refund the full amount of any bad debt allowance or refund received to the seller.
Source: SDC 1939, § 57.3310 as amended by SL 1967, ch 329, § 7; SL 2002, ch 64, § 25; SL 2003, ch 65, § 1; SL 2005, ch 74, § 1.
10-45-30.1. Cash basis reporting and payment.
Notwithstanding other provisions of this chapter, the secretary of revenue shall allow retailers to report and pay sales tax measured by gross receipts upon a cash basis if:
(1) The retailer has not changed his basis in the previous calendar year;
(2) The retailer's records are kept in a manner which may be audited to determine whether sales tax is paid upon all taxable sales;
(3) The retailer has made a written request to the secretary for authority to pay tax on the cash basis; and
(4) Authority to pay tax on the cash basis applies only to sales made after the authority is granted.
Source: SL 1983, ch 85, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-30.2. Accrual basis reporting and payment.
If the secretary of revenue has granted a retailer the authority to report and pay sales tax on the cash basis and a retailer requests in writing for the authority to report and pay sales tax upon the accrual basis, the secretary may grant such authority if assessment and collection of taxes are not jeopardized.
Source: SL 1983, ch 85, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-31. Receipts not issued for taxes remitted.
The secretary of revenue shall not be required to issue receipts for sales tax remitted to the Department of Revenue.
Source: SL 1951, ch 463, § 1; SDC Supp 1960, § 57.3302-1; SDC Supp 1960, § 57.3302 as added by SL 1967, ch 329, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-35. Appeals from decisions of secretary.
Appeals from decisions of the secretary of revenue in contested cases may be taken in accordance with chapter 1-26.
Source: SL 1967, ch 329, § 16; SL 1982, ch 115, § 3; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-37. Jeopardy assessment of sales tax--Lien and distress warrant--Bond to pay tax.
If the secretary of revenue believes that the assessment or collection of taxes will be jeopardized by delay, he may immediately make an assessment of the estimated tax and penalty, and demand payment thereof from the taxpayer. If such payment is not made, a lien may be filed and a distress warrant issued. The secretary of revenue shall be permitted to accept a bond from the taxpayer to satisfy collection until the amount of tax legally due shall be determined and paid.
Source: SL 1967, ch 329, § 11; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-42. Endorsement and return of uncollectible warrant--Liability of officer for failure to issue or execute warrant.
When the sheriff is unable to find property of the taxpayer which may be seized and sold, he shall, within thirty days after receipt of the warrant, endorse upon the case of the warrant the word "uncollectible" and return the warrant to the county treasurer. Failure or refusal of the county treasurer to issue a distress warrant when requested to do so, or of the sheriff to attempt to execute the same, shall make the officer failing to perform his duty personally liable for the delinquent tax, and said tax may be recovered in an action brought against him and his sureties by the secretary of revenue.
Source: SL 1967, ch 329, § 14; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-45. Records preserved by persons subject to tax--Inspection by department.
Every person subject to tax under this chapter shall keep records and books of all receipts and sales, together with invoices, bills of lading, copies of bills of sale, and other pertinent papers and documents. Such books and records and other papers and documents shall, at all times during business hours of the day, be subject to inspection by the secretary of revenue or his duly authorized agents and employees to determine the amount of tax due. Such books and records shall be preserved for a period of three years unless the secretary of revenue, in writing, authorized their destruction or disposal at an earlier date.
Source: SDC 1939, § 57.3311; SL 1967, ch 329, § 8; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-47.1. Promulgation of rules.
The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning:
(1) Licensing, including bonding and filing license applications;
(2) The filing of returns and payment of the tax;
(3) Determining the application of the tax and exemptions;
(4) Taxpayer record-keeping requirements; and
(5) Determining auditing methods.
Source: SL 1987, ch 82, § 23; SL 1995, ch 53, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-48.1. Violation of chapter as criminal offense--Classification.
Any person who:
(1) Makes any false or fraudulent return in attempting to defeat or evade the tax imposed by this chapter is guilty of a Class 6 felony;
(2) Fails to pay tax due under this chapter within sixty days from the date the tax becomes due is guilty of a Class 1 misdemeanor;
(3) Fails to keep the records and books required by § 10-45-45 or refuses to exhibit these records to the secretary of revenue or the secretary's agents for the purpose of examination is guilty of a Class 1 misdemeanor;
(4) Fails to file a return required by this chapter within sixty days from the date the return is due is guilty of a Class 1 misdemeanor;
(5) Engages in business as a retailer under this chapter without obtaining a sales tax license is guilty of a Class 1 misdemeanor;
(6) Engages in business as a retailer under this chapter after the person's sales tax license has been revoked by the secretary of revenue is guilty of a Class 6 felony;
(7) Willfully violates any rule of the secretary of revenue for the administration and enforcement of the provisions of this chapter is guilty of a Class 1 misdemeanor;
(8) Violates either subdivision (2) or subdivision (4) two or more times in any twelve-month period is guilty of a Class 6 felony; or
(9) Engages in business as a retailer under this chapter without obtaining a sales tax license after having been notified in writing by the secretary of revenue that the person is a retailer subject to the provisions of the sales and use tax laws is guilty of a Class 6 felony. It is not a violation of this subdivision if the person engaging in business as a retailer files an application for a sales tax license and meets all lawful prerequisites for obtaining such license within three days from receipt of written notice from the secretary.
For purposes of this section, the term, person, includes corporate officers, member-managers or managers of limited liability companies, or partners that control, supervise, or are charged with the responsibility of filing tax returns or remitting tax payments pursuant to § 10-45-55.
Source: SL 1984, ch 86, § 1; SL 1985, ch 91; SL 1987, ch 82, § 26; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2004, ch 96, § 1; SL 2009, ch 49, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-52. Tax proceeds credited to general fund.
All taxes and license fees collected by the secretary of revenue pursuant to this chapter, shall immediately be turned over to the state treasurer and credited to the state general fund, except as otherwise provided.
Source: SDC 1939, § 57.3103; SL 1939, ch 267; SL 2001, ch 56, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-55. Personal liability of officers, managers, or partners of entity failing to file returns or pay tax--Security in lieu of liability--Bonded municipal officials exempt.
If a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership subject to tax under this chapter fails for any reason to file the required returns or to pay the tax due, any of the corporate officers, member-managers or managers of limited liability companies, or partners of partnerships that control, supervise, or are charged with the responsibility of filing the returns or remitting tax payments shall be personally liable for the failure. The dissolution of a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership does not discharge an officer, member-manager, manager, or partner's liability for a prior failure of the corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership to file a return or remit the tax due. The sum due for such a liability may be assessed and collected as provided by law.
If the corporate officers, limited liability company member-managers or managers, or partners elect not to be personally liable for the failure to file the required returns or to pay the tax due, the corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership shall provide the Department of Revenue with a surety bond or certificate of deposit as security for payment of any tax that may become due. The bond or certificate of deposit provided for in this section shall be in an amount equal to the estimated annual gross receipts multiplied by the applicable sales or excise tax rate. This section does not apply to elected or appointed officials of a municipality if bonded pursuant to §§ 9-14-6 and 9-14-6.1.
Source: SL 1981, ch 105; SL 1982, ch 120, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2009, ch 49, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-58. Materials used by floor laying as purchases for resale.
Carpet, floor covering, tacks, glue, and other materials purchased for use by floor laying and other floor work not elsewhere classified (industry no. 1752) as enumerated in the Standard Industrial Classification Manual of 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President, and used for such work are purchases for resale.
Source: SL 1991, ch 108, § 4.
10-45-61. Exemption certificate--Responsibilities of purchaser--Violation as misdemeanor--Retention of certificate--Rules and forms.
A seller, who possesses an exemption certificate from a purchaser of tangible personal property, any product transferred electronically, or services that indicates the items or services being purchased are exempt, may rely on the exemption certificate and not charge sales tax to the provider of the exemption certificate until the provider of the exemption certificate gives notice that the items or services being purchased are no longer exempt by filing a new exemption certificate with the seller.
The exemption certificate shall be signed by the purchaser. The exemption certificate shall provide the purchaser's name, address, and valid state tax license number, if applicable. However, any person filing an electronic exemption certificate is not required to sign the exemption certificate.
The purchaser claiming the protection of an exemption certificate is responsible for assuring that the goods and services delivered thereafter are of a type covered by the exemption certificate. A seller of property, any product transferred electronically, or services which are generally described under the exemption certificate is not responsible for the collection of the tax unless otherwise directed by the purchaser.
If the purchaser later determines there is any tax due and owing, the purchaser shall remit the tax owed by the purchaser to the state. If the purchaser makes an exempt purchase and later determines that the goods or services purchased are not exempt, the purchaser shall report the transaction and pay the use tax on the next filing of the purchaser's return.
Any purchaser who knowingly files an exemption certificate with a retailer in order to purchase tangible personal property, any product transferred electronically, or services with the intent to evade payment of the tax, and fails to timely report the same with the department is guilty of a Class 1 misdemeanor. The secretary of revenue may assess a penalty of up to fifty percent of the tax owed, in addition to the tax owed. No interest may be charged on the penalty.
The seller shall retain the exemption certificate for a period of three years from the date it is filed by the purchaser and provide the exemption certificate to the department upon request.
The secretary may promulgate rules pursuant to chapter 1-26 to adopt forms for exemption certificates.
Source: SL 1993, ch 99; SL 2002, ch 64, § 26; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 51, § 24; SL 2010, ch 58, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2021, ch 49, § 10.
10-45-61.1. Exemption certificate--Timing--Alternative Information.
Notwithstanding the provisions of §§ 10-45-61, 10-59-3, and 10-59-7, if the seller has not obtained an exemption certificate or all relevant data elements for an exemption certificate, the seller may, within one hundred twenty days subsequent to a request for substantiation by the Department of Revenue, do either of the following:
(1) Obtain a fully completed exemption certificate from the purchaser, taken in good faith which means that the seller obtained a certificate that claims an exemption that:
(a) Was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;
(b) May be applicable to the item being purchased; and
(c) Is reasonable for the purchaser's type of business; or
(2) Obtain other information establishing that the transaction was not subject to the tax.
Any exemption certificate presented after one hundred twenty days need not be considered by the department.
Source: SL 2007, ch 59, § 1; SL 2020, ch 35, § 1.
10-45-62. Exemption of large boats subject to excise tax.
Any large boat as defined by § 32-3A-2 is hereby exempted from sales tax if subject to the tax imposed by § 32-3A-50.
Source: SL 1993, ch 102, § 14; SL 2001, ch 56, § 6.
10-45-64. Exemption of gaming proceeds.
There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it gross proceeds of gaming allowed by chapter 42-7B.
Source: SL 1994, ch 331, § 2.
10-45-67. Exemption of natural gas transportation services by pipeline.
The provision of natural gas transportation services by a pipeline is exempted from the provisions of this chapter and from the computation of the tax imposed by this chapter.
Source: SL 1994, ch 99, § 1.
10-45-68. Exemption for the sale of credit card processing services.
There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of credit card processing services to retailers.
Source: SL 1994, ch 100, § 1.
10-45-71. Passenger transportation gross receipts tax imposed--Transportation to be within state.
There is imposed a tax of four and two-tenths percent on the gross receipts from the transportation of passengers. The tax imposed by this section applies to any transportation of passengers if the passenger boards and exits the mode of transportation within this state.
Source: SL 1996, ch 83, § 3; SL 2016, ch 65, § 8, eff. June 1, 2016; SL 2023, ch 32, § 8.
Effective July 1, 2027
10-45-71. Passenger transportation gross receipts tax imposed--Transportation to be within state.
There is imposed a tax of four and one-half percent on the gross receipts from the transportation of passengers. The tax imposed by this section shall apply to any transportation of passengers if the passenger boards and exits the mode of transportation within this state.
Source: SL 1996, ch 83, § 3; SL 2016, ch 65, § 8, eff. June 1, 2016; SL 2023, ch 32, §§ 8, 19.
10-45-72. Inapplicability of tax.
The tax imposed by § 10-45-71 does not apply to any transportation service which the state is prohibited from taxing by federal law or the United States Constitution.
Source: SL 1996, ch 83, § 5; SL 2004, ch 94, § 3.
10-45-82. Gross receipts from charge of interest exempted.
There are exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from the charge of interest as defined in § 54-3-1.
Source: SL 1996, ch 88, § 1.
10-45-83. Pawnbrokers not eligible for exemption.
The provisions of §§ 10-45-82 and 10-46-62 do not apply to the gross receipts from interest paid any pawnbroker from the tax imposed by chapters 10-45 and 10-46. For the purposes of this section, a pawnbroker means any person who is engaged in the business of lending money and who accepts the possession of tangible personal property or any product transferred electronically as security for the loan.
Source: SL 1996, ch 88, § 3; SL 2008, ch 51, § 25.
10-45-84. Fee or commission not subject to tax.
Any fee or commission received by a retailer for arranging or assisting in the arrangement of a loan for a customer to pay for tangible personal property or any product transferred electronically sold by such retailer does not constitute gross receipts subject to the tax imposed by this chapter.
Source: SL 1996, ch 88, § 4; SL 2008, ch 51, § 26.
10-45-85. Temporary vendor to maintain inventory records--Violation as misdemeanor.
A temporary vendor shall maintain, for a minimum of three years, inventory records, including a beginning inventory of merchandise. The vendor shall provide such records for immediate inspection and review to any agent or representative of the Department of Revenue upon request. Failure to comply with this section is a Class 1 misdemeanor.
Source: SL 1996, ch 82, § 1; SL 2003, ch 66, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-86. Temporary vendor to maintain sales receipts--Violation as misdemeanor.
A temporary vendor shall maintain daily sales receipts, such as cash register tapes, hand written receipts, credit card receipts, or other receipts, for a minimum of three years. The vendor shall provide such receipts for immediate inspection and review to any agent or representative of the Department of Revenue upon request. Failure to comply with this section is a Class 1 misdemeanor.
Source: SL 1996, ch 82, § 2; SL 2003, ch 66, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-87. Temporary vendor to furnish list of suppliers--Violation as misdemeanor.
A temporary vendor shall maintain for a minimum of three years, a complete list of suppliers, including names and addresses. The vendor shall provide for immediate inspection and review of such list to any agent or representative of the Department of Revenue upon request. Failure to comply with this section is a Class 1 misdemeanor.
Source: SL 1996, ch 82, § 3; SL 2003, ch 66, § 3; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-88. Review and audit of temporary vendors.
A temporary vendor operating in this state may be subjected to reviews and audits without notice.
Source: SL 1996, ch 82, § 4; SL 2003, ch 66, § 4.
10-45-89. Failure to maintain records--Revocation of temporary license.
The secretary shall revoke the temporary license of any person that fails to comply with the provisions of §§ 10-45-85 to 10-45-89, inclusive.
Source: SL 1996, ch 82, § 5; SL 2003, ch 66, § 5.
10-45-90. Exemption for gross receipts from certain rodeo services.
There are exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts resulting from services performed for rodeos by promoters, stock contractors, stock handlers, announcers, judges, and clowns.
Source: SL 1996, ch 85, § 1.
10-45-91. Admissions to rodeos and related activities taxable.
Notwithstanding the provisions of § 10-45-13, admissions to rodeos and rodeo related activities and events are subject to the tax imposed by §§ 10-45-8 and 10-45D-2.
Source: SL 1996, ch 85, § 3; SL 1997, ch 68, § 12; SL 2002, ch 63, § 26.
10-45-92. Allowable deductions for auctioneers.
In determining the amount of tax due under this chapter, auctioneers may deduct from gross receipts amounts which represent direct expense charges for clients for tangible personal property, any product transferred electronically, or services purchased by the auctioneer on behalf of a client. However, the sale of the property or service to the auctioneer is not a sale for resale if this deduction is taken. This deduction may only be taken if the amount to be deducted represents an expense specifically incurred for a particular client and the amount is itemized and paid from the client's auction proceeds by the auctioneer or closing agent. The deduction shall be disallowed if the auctioneer receives any profit or remuneration directly or indirectly from the client's expense.
Source: SL 1996, ch 84; SL 2008, ch 51, § 27.
10-45-92.1. Retail sales include auctions, consignments, products transferred electronically, and services--Responsibilities of auction clerk and auctioneer.
All auction sales and consignment sales of tangible personal property, any product transferred electronically, and services are sales at retail. The auction clerk shall file the return and remit the tax imposed by this chapter on the gross receipts from each auction after applying the deductions provided by § 10-45-92. However, the auctioneer is responsible for the payment of the tax imposed by this chapter if the auction clerk is an employee of the auctioneer or if the auction clerk does not have a permit as required by this chapter. In addition to any other information required to be kept by this chapter, each auction clerk shall keep records that identify the owner of the property sold at auction and the auctioneer who conducts the sale of such property.
Source: SL 2000, ch 63, § 1; SL 2008, ch 51, § 28.
10-45-93. Exemption for gross receipts from international sale of agricultural and industrial equipment.
There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, gross receipts resulting from the sale of agricultural and industrial production equipment in international commerce if, under the terms of the sales agreement, physical delivery of the goods takes place in South Dakota. However, the exemption only applies if written evidence of the contract of sale is retained, and such contract indicates that the goods are to be shipped in international commerce to a point outside the United States not to be returned to a point within the United States.
Source: SL 1996, ch 86, § 1.
10-45-94. Exemption for gross receipts from direct mail service.
There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, the gross receipts received by a direct mail service for the cost of United States postage paid by the direct mail service if the cost of postage, including any markup that is reasonable and customary in the seller's industry, is listed by the direct mail service as a separate line item on the customer's bill.
For the purposes of this section, a direct mail service is any business that prepares direct mail.
Source: SL 1998, ch 69, § 1; SL 2010, ch 59, § 1.
10-45-94.1. Direct mail defined.
For the purposes of this chapter, the term, direct mail, means any printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser if the cost of the items are not billed directly to the recipients. The term includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. The term does not include multiple items of printed material delivered to a single address.
Source: SL 2010, ch 59, § 2.
10-45-95. Materials purchased by locksmiths are purchases for resale.
Locks, lock parts, other materials purchased for use by locksmiths as classified in repair shops and related services, not elsewhere classified (industry no. 7699) as enumerated in the Standard Industrial Classification Manual of 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President, and used for such work are purchases for resale.
Source: SL 1998, ch 71, § 3.
10-45-96. Tax on gross receipts of professional employer organization--Deduction available.
The gross receipts of a professional employer organization are specifically subject to the tax imposed by this chapter. However, a professional employer organization may deduct from its taxable gross receipts its actual disbursements, including appropriate reserves, for the wages, salaries, payroll taxes, payroll deductions, workers' compensation costs, insurance premiums, welfare benefits, retirement benefits, and other employee benefits of its co-employees.
Source: SL 1999, ch 57, § 1.
10-45-97. Professional employer organization defined.
For the purposes of § 10-45-96, the term, professional employer organization, means a firm which:
(1) Enters into a contractual agreement with a client company to create a co-employment relationship for the provision of payroll, benefits, and other human resources functions;
(2) Covers at least seventy-five percent of the client company's full-time or full-time equivalent employees domiciled in South Dakota; and
(3) Maintains separate books and records of account for each client company.
Source: SL 1999, ch 57, § 2.
10-45-98. Temporary help services not subject to § 10-45-96.
The provisions of §§ 10-45-96 and 10-45-97 do not apply to the providing of temporary help services or to any other arrangement whereby a firm temporarily assigns employees of the firm to support or supplement a client company's regular work force in special situations such as employee absences, temporary skill shortages, seasonal workloads and special assignments, or projects.
Source: SL 1999, ch 57, § 3.
10-45-99. Definitions.
Terms used in §§ 10-45-99 to 10-45-107, inclusive, mean:
(1) "Department," the Department of Revenue;
(2) "Business," a business that has purchased and is installing tangible personal property in the form of equipment or machinery for direct use in a manufacturing, fabricating, or processing business, which is subject to sales or use tax pursuant to chapter 10-45 or 10-46;
(3) "Project," the purchase and installation of equipment or machinery;
(4) "Project cost," the amount paid in money for a project;
(5) "Secretary," the secretary of the Department of Revenue.
Source: SL 2001, ch 57, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45-100. Extension for remitting sales and use tax on manufacturing equipment.
Any manufacturing, fabricating, or processing business may apply for and obtain an extension for remitting the sales and use tax imposed and due under the provisions of chapter 10-45 or 10-46 for equipment or machinery that will be for direct use in a manufacturing, fabricating, or processing business. The extension shall end after six months.
Source: SL 2001, ch 57, § 3.
10-45-101. Requirements for extension.
The extension pertains only to equipment and machinery purchased and installed after July 1, 2001. No extension may be made unless:
(1) The project cost exceeds twenty thousand dollars; and
(2) The business applying for the extension obtains a permit from the secretary as set forth in § 10-45-103.
Source: SL 2001, ch 57, § 4.
10-45-102. Extension applies to full costs and installation fees.
The amount of the tax extension shall apply to one hundred percent of the equipment and machinery costs and installation fees.
Source: SL 2001, ch 57, § 5.
10-45-103. Application for extension permit--Permit nontransferable.
Any business desiring an extension pursuant to §§ 10-45-99 to 10-45-107, inclusive, shall apply for a permit from the secretary at least thirty days prior to commencement of the project. The application for a permit shall be submitted on a form prescribed by the secretary. A separate application shall be made and submitted for each project. Upon approval of the application, the secretary shall issue a permit entitling the applicant to an extension as provided by §§ 10-45-99 to 10-45-107, inclusive. The permit or extension is not assignable or transferable.
Source: SL 2001, ch 57, § 6.
10-45-104. Secretary to prescribe form and documentation requirements.
Any extension shall be submitted on forms prescribed by the secretary and shall be supported by such documentation as the secretary may require. The secretary may deny any extension where the business has failed to provide information or documentation requested or considered necessary by the secretary to determine the validity of the extension.
Source: SL 2001, ch 57, § 7.
10-45-105. Fraudulent claim--Tax due constitutes lien in favor of state.
If any extension has been fraudulently presented or supported as to any item in the claim, or if the business fails to meet all the conditions §§ 10-45-99 to 10-45-107, inclusive, then the business may be rejected in its entirety and any tax due from the business shall constitute a debt to the state and a lien in favor of the state upon all property and rights to property whether real or personal belonging to the business and may be recovered in an action of debt.
Source: SL 2001, ch 57, § 8.
10-45-106. Right to hearing on denial of extension request.
Any business aggrieved by the denial in whole or in part of a extension requested under §§ 10-45-99 to 10-45-107, inclusive, may within thirty days after service of the notice of a denial by the secretary, demand and is entitled to a hearing, upon notice, before the secretary. The hearing shall be conducted pursuant to chapter 1-26.
Source: SL 2001, ch 57, § 9.
10-45-107. Promulgation of rules regarding filing extensions.
The secretary may promulgate rules, pursuant to chapter 1-26, concerning the procedures for filing extensions and the requirements necessary to qualify for an extension.
Source: SL 2001, ch 57, § 10.
10-45-108. Sourcing of sales and services.
For purposes of the tax imposed by this chapter, a retailer shall source sales of tangible personal property, any product transferred electronically, and services to the location where the tangible personal property, the product transferred electronically, 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.
Source: SL 2002, ch 64, § 27; SL 2008, ch 51, § 29.
10-45-109. Registration and tax collection does not create nexus for other taxes.
Registration under the agreement and collection of tax imposed under this chapter or chapter 10-46 does not in and of itself create nexus for other taxes or fees imposed by this state.
Source: SL 2002, ch 64, § 28.
10-45-110. Exemption for sale of coins, currency, or bullion.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of coins, currency, or bullion. For the purposes of this section, the term, bullion, means any bar, ingot, or commemorative medallion of gold, silver, platinum, palladium, or a combination of these metals where the value of the metal depends on its content and not the form. For the purposes of this section, the terms, coins and currency, mean any coins or currency made of gold, silver, or other metal or paper which is or has been used as legal tender.
Source: SL 2007, ch 60, § 1.
10-45-111. Relief from liability for failing to collect tax at new rate--Conditions.
A retailer is relieved of any liability for failing to collect a tax pursuant to this chapter at a new effective rate if the state fails to provide a period of at least thirty days between enactment of the statute providing for a rate change and the effective date of the rate change if:
(1) The retailer collected the tax at the immediately preceding effective rate; and
(2) The retailer's failure to collect at the newly effective rate does not extend beyond thirty days after the date of enactment of the new rate.
This section does not apply if the retailer fraudulently failed to collect the tax at the new rate or solicited purchasers based on the immediately preceding effective rate.
Source: SL 2010, ch 60, § 1.
10-45-112. Exemption for nonprofit corporations created for fire protection.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal property, any product transferred electronically, and services to any nonprofit corporation created for the purpose of fire protection that is controlled by any political subdivision of this state.
Source: SL 2016, ch 66, § 1.
10-45-113. Exemption for small sales by minors.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts of any person under eighteen years of age with gross receipts totaling less than one thousand dollars in any calendar year from any sale of tangible personal property, any service delivered, or any product or service transferred electronically for use in the state.
Source: SL 2019, ch 65, § 1; SL 2024, ch 39, § 4.
10-45-114. Exemption--Coaches.
There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts for coaching services performed for youth or amateur sports when the gross receipts for the coaching services total less than four thousand dollars in any calendar year. For purposes of this section, a youth or amateur sport is any sport in which the participants are aged nineteen or younger and do not receive compensation for participation.
Source: SL 2022, ch 33, § 1; SL 2024, ch 39, § 5.
