S.D. Admin. R. 64:06:02:08
Blacksmiths and welders are liable for tax on their receipts from the sales of tangible personal property and their services.
If a blacksmith makes or fabricates and sells a new article to a customer the blacksmith is liable for tax measured by the total gross receipts from the sale of this article, with no deduction for cost of production from the selling price.
Sales of tangible personal property to blacksmiths and welders, such as iron, steel, and metal for soldering for use either in manufacture of tangible personal property or in connection with repair work, are sales for the purpose of resale which are exempt from tax. Sales of oxygen, acetylene, blacksmith's coal or electrical energy are sales for consumption and taxable. Unless merchandise sold becomes an integral part in the manufacture or repair of personal property, the seller to the blacksmith must charge sales tax. If South Dakota sales tax has not been paid to a licensed vendor on supplies which do not become an integral part of the manufactured or repaired property, the cost of the supplies must be entered as a use tax item on the sales tax return.
S.D. Admin. R. 64:06:02:08
General Authority: SDCL 10-45-47.1.
Law Implemented: SDCL 10-45-5.