South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:01 - Administration of program
Section 64:06:01:08 - Exemption certificates

Receipts from the sale of tangible personal property or any product transferred electronically are presumed to be exempt if the buyer has furnished an exemption certificate. A new exemption certificate is not needed for each sale.

Electricians, plumbers, and other similar contractors who maintain a retail store, in addition to contracting out their services, may purchase all electrical, plumbing, and related merchandise from jobbers, wholesalers, or manufacturers for resale and give an exemption certificate. All items removed from inventory and used in the performance of a contract are subject to use tax. Use tax on materials used in contract work must be paid on the cost of such materials.

Electricians, plumbers, and other similar contractors who are not retailers may not hold a tax permit, but may take credit on their excise tax return for amounts paid to suppliers as sales tax if the item purchased is later resold rather than used. Sales must then be reported and tax paid on the amount of the sale.

In order to purchase ingredient or component parts exempt from tax, processors and manufacturers must be licensed and must furnish their suppliers with exemption certificates.

General Authority: SDCL 10-45-47.1(4), 10-46-35.1(4), 10-46A-19(4), 10-46B-18(4).

Law Implemented: SDCL 10-45-2, 10-45-2.4, 10-45-61, 10-46-2, 10-46-2.2.