South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:06 - Sales tax
Chapter 64:06:03 - Products - Interpretive rules
Section 64:06:03:43 - Water and gravel haulers
Operators of gravel pits are retailers of gravel subject to tax and the haulers of water, except bulk water for domestic use, are engaged in making taxable sales. When customers take delivery of gravel at the pit or water at the source of supply, the charge is subject to tax. If a customer employs a trucker who is a licensed carrier for hire to haul gravel or water, the seller shall report the tax on the charge for the gravel or water.
If operators of gravel pits or sellers of water deliver with their own truck or employ someone to deliver for them to a place designated by the buyer, the entire charge, including cost of delivery, is subject to sales tax.
If the operator or buyer uses the gravel in making a realty improvement, the gravel is subject to the state sales or use tax upon the greater of the purchase price or the fair market value even if the gravel is furnished by an exempt entity.
General Authority: SDCL 10-45-47.1, 10-46-35.1.
Law Implemented: SDCL 10-45-2, 10-45-19.3, 10-46-5.