South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:01 - Administration of program
Section 64:06:01:01.01 - Sales to or by the United States army and its instrumentalities upon military reservations

Sales tax does not apply to service organizations operating exclusively within a federal area over which the state of South Dakota has conceded all jurisdiction to the United States government. Sales to or by post exchanges, officers' clubs, mess, and noncommissioned officers' clubs and all other voluntary unincorporated organizations of army personnel authorized by the secretary of defense, or sales made by such organizations to any authorized purchaser, are also exempt. The term "authorized purchaser" includes those persons who are permitted to purchase from such organizations under regulations issued by the secretary of defense.

Sales to persons in the armed forces of the United States, including civilian employees in such service, are not exempt from sales tax, unless such sales are made to them as an authorized purchaser by a service organization exclusively within a United States military reservation and authorized by the secretary of defense.

General Authority: SDCL 10-45-47.1.

Law Implemented: SDCL 10-45-10.

Declaratory Ruling: The sales tax exemption from receipts of sales of tangible personal property to governmental agencies also applies to the gross receipts from sales of services to governmental entities. Secretary of Revenue Declaratory Ruling No. 79-3.