South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:03 - Products - Interpretive rules
Section 64:06:03:41 - Vending machines
An operator of vending machines must obtain a sales tax license to engage in the business of selling tangible personal property or any product transferred electronically at retail and must pay the sales tax rate on gross receipts from the operation of such machines. Vending machine owners may determine the average equivalent sales by dividing their total receipts by the percentage of the current tax rate. One license is sufficient for all the machines of one operator.
If the South Dakota sales tax has not been paid to a licensed retailer on the purchase of a vending machine, use tax must be paid on the cost of machines originally purchased for use in South Dakota and on the fair market value of machines not originally purchased for use in this state, but thereafter brought into the state.
General Authority: SDCL 10-45-47.1(3), 10-46-35.1(3).
Law Implemented: SDCL 10-45-2, 10-45-2.4, 10-46-2, 10-46-2.2.
Declaratory Ruling: Vending machine owners need not pay sales tax on total receipts, but may determine the average equivalent sales by dividing their total receipts by 1.03. (Opinion issued while sales tax was three percent.) Secretary of Revenue Declaratory Ruling No. 77-17.