South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:09 - Use tax
Chapter 64:09:01 - Interpretive rules
Section 64:09:01:06 - Exemption of raw materials and parts for manufacture of products to be sold at retail
Tangible personal property, including containers which, by means of fabrication, compounding, or manufacturing, become an integral or component part of other tangible personal property intended to be sold ultimately at retail and which is, at the time of the sale, subject to sales tax, is exempt from use tax when it is used to hold property that is subject to sales tax. If containers are used to hold property that is not subject to the sales tax or used by a service establishment in performing a service of its business, the containers are considered used or consumed by the operator of the business and not by the consumer; and in such cases the tax applies.
General Authority: SDCL 10-46-35.1.
Law Implemented: SDCL 10-46-9.