Investor Presentaiton
Exemptions (cont.)
Other Exempt Transactions or Products (cont.)
Food Stamp Purchases - All food stamp purchases (SNAP) are not subject to sales tax.
Gasoline - Sales of gasoline, diesel fuels, gasohol, alcohol fuels, propane, kerosene, aviation fuel, jet fuel, and other
similar combustible fuels are not subject to sales tax as they are subject to South Dakota fuel tax.
Dyed diesel fuel used for agricultural purposes is not subject to
sales tax. However, propane and kerosene used for home
heating and other purposes would be subject to sales tax.
Off road use of dyed diesel fuel may be subject to sales tax.
Lottery Sales - South Dakota lottery tickets and video lottery
receipts are not subject to sales tax. A $12 amusement device
decal must be purchased for each machine and renewed by
June 30th of each year.
The sale of video lottery machines is subject to state sales tax but
not municipal tax.
Repairs - Repairs to products in inventory to be sold are not
subject to sales tax.
Taxable: Repair and replacement parts for leased products.
W.I.C. Authorized purchases made under the Child Nutrition
Act (W.I.C.) are not subject to sales tax.
Taxable Transactions
Sales to:
.
Churches
Membership
organizations such as
YMCA, YWCA, Boys
and Girls Scouts,
Lions Club or Jaycees
Civic and Nonprofit
Organizations
Schools, Colleges,
and Religious,
Benevolent, Fraternal,
and Charitable
Organizations for
fundraisers
Sales of:
Gifts and Premiums
Prepared Food,
Meals, or Drink
Repair and Service of
Products
Products Sold at
Auction
Warranty Parts and Service - Parts and services to fulfill an obligation of the manufacturer, providing no charge is
made to the customer are not subject to sales tax.
Charges to customer for parts, service, or deductibles are taxable.
Water - Bulk water for domestic use, water sold by water supply system for domestic, commercial, and industrial use are
not subject to sales tax.
Tax License Changes
License Cancellation - Sales tax licenses are NOT
transferable. File a final return and pay all tax due
when:
•
Business is closed;
•
Business is sold; or
•
Ownership of the business changes.
A change in ownership or legal organization requires a
new tax license (i.e. from one sole proprietor to another,
from a sole proprietor to a partnership, a change from
sole proprietor to a corporation, or a merger).
Partnership Changes - Information on any change in partners must be sent in writing to the department and must be
signed by all partners, including those leaving, entering, and staying in the partnership. Information must include:
•
•
The name, social security number, personal address, phone number, and effective date of change for any new
partner.
The name and effective date of separation for any partner leaving.
Corporations LLC, or LLP Changes - Information on any change in
corporate officers or members must be sent to the department. A change in
corporate officers or members does not require a new tax license.
All tax license changes can be
completed through an EPath account
at https://sd.gov/EPath.
Address Changes - Click here to fill out the change of address form online or notify the department in writing if the
mailing address or the business location changes. Include the new address information, effective date of the change, tax
license number, and business name.
South Dakota Department of Revenue
·
Sales and Use Tax Guide ⚫January 2022 • 13View entire presentation