South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:03 - Products - Interpretive rules
Section 64:06:03:11 - REA and RTA cooperatives
Rural electric cooperatives and mutual or cooperative telephone companies must pay sales or use taxes on purchases made by them for final use or consumption. These organizations must also collect and remit sales tax on all retail sales made by them. Electrical supplies purchased by rural electric cooperatives, mutual or cooperative telephone companies, or other centrally assessed utilities and specifically intended for use outside the city limits are not subject to municipal sales or use tax when stored within the city limits.
General Authority: SDCL 10-45-47.1, 10-46-35.1, 10-52-4.
Law Implemented: SDCL 10-45-2, 10-46-2, 10-52-2, 10-52-4.
Declaratory Ruling: A company which generates electricity for resale to local cooperatives must pay excise tax on the total gross receipts from sales within the state whether the power is delivered over facilities which it owns or over facilities owned by others. Secretary of Revenue Declaratory Ruling No. 77-11.