South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:01 - Administration of program
Section 64:06:01:01.04 - Public and municipal corporations
Current through Register Vol. 51, page 43, September 23, 2024
Gross receipts from sales to public or municipal corporations are exempt from sales tax. A public corporation or municipal corporation is one created by the state or a municipality, pursuant to authority granted by South Dakota law, for political purposes to act as an agency in the administration of civil government. The following are indicia of a public corporation or of a municipal corporation:
(1) It performs a governmental function;
(2) It is a nonprofit organization exempt from federal income tax;
(3) It is licensed or chartered by a division of state or local government;
(4) It is subject to inspection and audit accomplished or reviewed by a division of state or local government; and
(5) Some statutory provision is made for the levy of state or local taxes for funding of some activity of the organization or for authority to spend funds raised by taxation.
General Authority: SDCL 10-45-47.1(3).
Law Implemented: SDCL 10-45-10.
Declaratory Rulings: 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.
Public alcohol treatment facilities approved and funded by the state division of alcoholism are not political subdivisions of the state and are not exempt from sales tax. Secretary of Revenue Declaratory Ruling No. 80-4.
