S.D. Admin. R. 64:06:02:03.02

Current through Register Vol. 50, page 162, June 24, 2024

Section 64:06:02:03.02 - Advertising cooperatives

Gross receipts received by a franchiser as a cost share or a reimbursement for purchases of exempt advertising services made by the franchiser are not subject to sales tax if:

(1) The gross receipts are paid by a franchisee to its franchiser for exempt advertising services purchased by the franchiser for the franchisee's business or the franchise;

(2) The franchiser denotes the gross receipts as a cost share or reimbursement for exempt advertising services; and

(3) The franchiser has documentation verifying that the gross receipts were received as a cost share or reimbursement for a specific exempt advertising service purchased by the franchiser.

S.D. Admin. R. 64:06:02:03.02

24 SDR 97, effective 1/25/1998.

General Authority: SDCL 10-45-47.1.

Law Implemented: SDCL 10-45-2, 10-45-12.1, 10-45-20.