South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:03 - Products - Interpretive rules
Section 64:06:03:23 - Machinery and fixtures sold to manufacturers and other businesses
Gross receipts from sales of machinery, tools, bolts, and other equipment to a manufacturer, producer, or contractor and gross receipts from sales of furniture, fixtures, supplies, stationary, equipment, appliances, instruments, and tools to stores, shops, business establishments, offices, and professional people for use in carrying on their business or professional activities are taxable. Such sales are to final buyers or ultimate consumers and are not sales for resale. If sales tax is not paid to suppliers at the time of purchase, use tax must be paid directly to the department.
Purchases of tangible personal property or any product transferred electronically which by manufacture, compounding, or fabrication, becomes an integral part of other tangible personal property to be sold ultimately at retail are not subject to sales or use tax. Sellers of such property must obtain an exemption certificate.
General Authority: SDCL 10-45-47.1(3), 10-46-35.1(3).
Law Implemented: SDCL 10-45-2, 10-45-2.4, 10-45-61, 10-46-2.2, 10-46-9.