S.D. Admin. R. 64:06:01:08.04

Current through Register Vol. 50, page 159, June 17, 2024

Section 64:06:01:08.04 - Services performed on property held for sale

The repair of tangible personal property held for sale or the installment of replacement parts in tangible personal property that is held for sale are considered to be services for resale. Receipts from the sale of services for resale are not subject to sales tax if the purchaser furnishes an exemption certificate.

S.D. Admin. R. 64:06:01:08.04

18 SDR 3, effective 7/14/1991; 21 SDR 219, effective 7/1/1995; 28 SDR 178, effective 7/1/2002; 33 SDR 226, effective 6/27/2007.

General Authority: SDCL 10-45-47.1(3), 10-46-35.1(3).

Law Implemented: SDCL 10-45-1(10), 10-45-4, 10-45-4.1, 10-45-20, 10-46-2.1

Examples:

(1) Al's Used Cars, Inc., hires Ace Mechanic to install a rebuilt carburetor in one of its cars which is to be sold. Ace's fees are not subject to tax if Al gives Ace an exemption certificate.

(2) Al also has Ace repair a lawnmower which Al uses to mow his car lot. Ace's fees are subject to tax even though Al may eventually sell the lawnmower to a third party.