South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:01 - Administration of program
Section 64:06:01:08.04 - Services performed on property held for sale

Universal Citation: SD Admin Rules 64:06:01:08.04
Current through Register Vol. 50, page 114, March 25, 2024

The repair of tangible personal property held for sale or the installment of replacement parts in tangible personal property that is held for sale are considered to be services for resale. Receipts from the sale of services for resale are not subject to sales tax if the purchaser furnishes an exemption certificate.

General Authority: SDCL 10-45-47.1(3), 10-46-35.1(3).

Law Implemented: SDCL 10-45-1(10), 10-45-4, 10-45-4.1, 10-45-20, 10-46-2.1

Examples:

(1) Al's Used Cars, Inc., hires Ace Mechanic to install a rebuilt carburetor in one of its cars which is to be sold. Ace's fees are not subject to tax if Al gives Ace an exemption certificate.

(2) Al also has Ace repair a lawnmower which Al uses to mow his car lot. Ace's fees are subject to tax even though Al may eventually sell the lawnmower to a third party.

Disclaimer: These regulations may not be the most recent version. South Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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