South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:09 - Use tax
Chapter 64:09:01 - Interpretive rules
Section 64:09:01:20 - Determination of age and value of tangible personal property

For the purposes of the exemption in SDCL 10-46-3, tangible personal property or any product transferred electronically must be more than seven years old as determined by its date of manufacture, if documented, or by the date of the purchase by the person bringing the property into this state. In the absence of independent documentary proof of the value of the tangible personal property or any product transferred electronically at the time it is brought into South Dakota, the value of the property is presumed to be the purchase price reduced by ten percent for each year of use of the property by the person bringing the property into this state. Statements, opinions, or depreciation schedules of the owner of the property are not independent documentary proof of the value of the property.

General Authority: SDCL 10-46-35.1.

Law Implemented: SDCL 10-46-3.

Example:

ABC Corporation, an Iowa manufacturer, purchased a conveyor on July 1, 1988, for $10,000. The conveyor was used in its Sioux City plant until January 1, 1991, at which time it was transported to ABC's new facility in South Dakota. There are no industry publications or used equipment digests which indicate the current value of the conveyor. The value of the conveyor for use tax purposes is $7,500 ($10,000 reduced by 25 percent).