ARSD Article 64:09 — USE TAX

REVENUE REVENUE

Chapter 64:09:01 Interpretive rules

ARSD 64:09:01:01 Use tax law -- Procedure

If property is purchased from a nonresident seller who is not licensed to collect use tax, the buyer shall pay the tax directly to the department when the property is brought into the state.

History

• Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 30 SDR 58, effective November 5, 2003.
• General Authority: SDCL 10-46-35.1(3).
• Law Implemented: SDCL 10-46-2, 10-46-4.

ARSD 64:09:01:02 Repealed

Collection of use tax by retailer -- Receipts given to purchaser.** Repealed.

History

• Source: SL 1975, ch 16, § 1; repealed, 11 SDR 1, effective July 19, 1984.

ARSD 64:09:01:03 Repealed

Liability of user for tax -- Return and payment.** Repealed.

History

• Source: SL 1975, ch 16, § 1; 7 SDR 80, effective February 22, 1981; repealed, 11 SDR 1, effective July 19, 1984.

ARSD 64:09:01:04 Exemption of property brought in for personal use of nonresident

The exemption from the use tax set forth in SDCL 10-46-8 applies to personal effects and household furniture. It does not apply to tangible personal property or any product transferred electronically brought into the state by a nonresident for use while engaged in the performance of a contract, or the establishment of a business, within the state.

History

• Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 35 SDR 48, effective September 8, 2008.
• General Authority: SDCL 10-46-35.1(3).
• Law Implemented: SDCL 10-46-8.

ARSD 64:09:01:05 Repealed

Exemption of newspaper print.** Repealed.

History

• Source: SL 1975, ch 16, § 1; 5 SDR 60, effective January 25, 1979; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 20 SDR 196, effective February 22, 1994; 21 SDR 219, effective July 1, 1995; repealed, 25 SDR 167, effective July 1, 1999.

ARSD 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.

History

• Source: SL 1975, ch 16, § 1; 7 SDR 80, effective February 22, 1981; 9 SDR 28, effective September 5, 1982; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995.
• General Authority: SDCL 10-46-35.1.
• Law Implemented: SDCL 10-46-9.

ARSD 64:09:01:07 Repealed

Property held for resale or use in another state.** Repealed.

History

• Source: SL 1975, ch 16, § 1; repealed, 5 SDR 60, effective January 25, 1979.

ARSD 64:09:01:08 Repealed

Property purchased for use in another state.** Repealed.

History

• Source: SL 1975, ch 16, § 1; 11 SDR 1, effective July 19, 1984; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 45 SDR 83, effective December 18, 2018.

ARSD 64:09:01:09 Property sold here used in interstate commerce

The fact that tangible personal property or any product transferred electronically is purchased in interstate or foreign commerce, does not exempt the storage, use, or other consumption of such property or product from use tax in this state after the shipment of property in interstate commerce has ended. After the property or product has come into the hands of the purchaser thereof for use, storage, or other consumption in this state, the interstate commerce has ceased and the property or product shall be taxed.

History

• Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 35 SDR 48, effective September 8, 2008.
• General Authority: SDCL 10-46-35.1(3).
• Law Implemented: SDCL 10-46-2, 10-46-2.2, 10-46-7.

ARSD 64:09:01:10 Repealed

Rental of property.** Repealed.

History

• Source: SL 1975, ch 16, § 1; 5 SDR 60, effective January 25, 1979; repealed, 11 SDR 1, effective July 19, 1984.

ARSD 64:09:01:11 Repealed

No refund of motor fuel tax when use or sales tax is not paid.** Repealed.

History

• Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; repealed by SL 1995, ch 53, § 5, effective July 1, 1995.

ARSD 64:09:01:12 Repealed

Packing containers subject to use tax.** Repealed.

Cross-Reference: Application of use tax to specific products and services, art 64:06.

History

• Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; repealed, 23 SDR 118, effective January 27, 1997.

ARSD 64:09:01:13 Repealed

Contractors -- Use tax license required.** Repealed.

History

• Source: 2 SDR 40, effective December 8, 1975; repealed, 7 SDR 80, effective February 22, 1981.

ARSD 64:09:01:14 Repealed

Nonresident contractors -- Copy of contract may be required to accompany application.** Repealed.

History

• Source: 2 SDR 40, effective December 8, 1975; repealed, 7 SDR 80, effective February 22, 1981.

ARSD 64:09:01:15 Repealed

Contractors -- Bond requirement.** Repealed.

History

• Source: 2 SDR 40, effective December 8, 1975; repealed, 7 SDR 80, effective February 22, 1981.

ARSD 64:09:01:16 Prime contractors -- Liability for tax

General contractors are liable for use tax due on all items of tangible personal property or any product transferred electronically used, stored, or consumed in the performance of their contract including those portions of the contract performed by subcontractors.

Declaratory Ruling: A contractor who installs a pipe organ in a church is subject to sales and use tax on the materials used in performance of the contract. Secretary of Revenue Declaratory Ruling No. 78-1.

History

• Source: 2 SDR 40, effective December 8, 1975; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 35 SDR 48, effective September 8, 2008.
• General Authority: SDCL 10-46-35.1(3).
• Law Implemented: SDCL 10-46-5.

ARSD 64:09:01:17 Repealed

Labor contract -- Materials used.** Repealed.

History

• Source: 6 SDR 44, effective November 8, 1979; 7 SDR 80, effective February 22, 1981; 13 SDR 129, 13 SDR 134, effective July 1, 1987; repealed, 20 SDR 103, effective January 10, 1994.

ARSD 64:09:01:18 Repealed

Fabrication costs.** Repealed.

History

• Source: 7 SDR 80, effective February 22, 1981; repealed, 9 SDR 28, effective September 5, 1982.

ARSD 64:09:01:19 Boats

A boat brought into this state by the manufacturer of the boat is not subject to use tax so long as the boat is solely for promotional or demonstrational purposes, title to the boat remains in the name of the manufacturer, and the promotional or demonstrational use of the boat does not extend beyond six months from the time the boat enters the state.

Examples:

(1) A boat manufacturer delivers a boat to a fishing guide in South Dakota to be used by the guide without charge to promote the manufacturer's product. The guide uses the boat in the guide's business, and, as agreed upon with the manufacturer, extols the boat's virtues to customers. The boat is not used solely for promotional or demonstrational purposes because the guide also uses it to transport clients for a fee. Therefore, the use of the boat is subject to use tax.

(2) A boat manufacturer sponsors a television series on walleye fishing on Lake Oahe. The manufacturer brings in a number of boats which are to be used without charge to those participating in the taping of the series. The boats are used solely to promote the manufacturer's product because they are an implement necessary for the production of the series. The series would not take place without sponsors, and the sponsors would not participate unless their products were showcased. The use is not subject to use tax.

History

• Source: 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995.
• General Authority: SDCL 10-46-35.1.
• Law Implemented: SDCL 10-46-2, 10-46-4.

ARSD 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.

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).

History

• Source: 18 SDR 3, effective July 14, 1991; 21 SDR 219, effective July 1, 1995; 35 SDR 48, effective September 8, 2008.
• General Authority: SDCL 10-46-35.1.
• Law Implemented: SDCL 10-46-3.

ARSD 64:09:01:21 Repealed

Definitions.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:22 Repealed

Nexus.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:23 Repealed

Criteria for remitting customer lists.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; 30 SDR 58, effective November 5, 2003; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:24 Repealed

Formats for customer lists.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; 30 SDR 58, effective November 5, 2003; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:25 Repealed

Required information for customer lists.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:26 Repealed

Time for submitting customer lists.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; 30 SDR 58, effective November 5, 2003; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:27 Repealed

Reimbursement of reasonable costs.** Repealed.

History

• Source: 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; 30 SDR 58, effective November 5, 2003; repealed, 35 SDR 48, effective September 8, 2008.

ARSD 64:09:01:28 Tax credit disallowed

The amount of use tax owed to this state by a taxpayer may not be reduced for sales or use taxes paid to another state pursuant to SDCL 10-46-6.1 and 10-46-34.1, if the sales or use tax paid to the other state was refunded to the taxpayer.

History

• Source: 30 SDR 40, effective September 29, 2003.
• General Authority: SDCL 10-46-35.1(3).
• Law Implemented: SDCL 10-46-6.1, 10-46-34.1.