South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:27 - Mineral tax
Chapter 64:27:01 - Mines and mining
Section 64:27:01:16 - Limitations of deductions
Deductions allowed in SDCL 10-39-45.2(6) are limited to expenditures incurred in production activities in this state.
General Authority: SDCL 10-39-49.
Law Implemented: SDCL 10-39-45.2(6).
Declaratory Ruling: The formula for determining net profit for mineral extraction tax on profit of minerals extracted in-state and shipped out-of-state for processing, where N = net profit, G = total gross yield, AS = in-state administrative costs and salaries, TS = South Dakota state and local taxes, CS = allowable costs incurred in-state, CO = allowable costs incurred out-of-state, and GS = gross yield from South Dakota minerals, is as follows:
N = GS - (AS + TS + CS) - CO x GS
G
Secretary of Revenue Declaratory Ruling No. 77-9.