S.D. Admin. R. 64:06:02:16
Gross receipts from cleaning and pressing, dry cleaning, and laundry services are subject to sales tax. No deduction may be taken for items expended by an operator in providing the service.
Cleaning and pressing establishments must pay South Dakota sales tax to suppliers or use tax to the state on their solvents, cleaning fluids, equipment, and other supplies which are consumed by them in rendering their service. Bags and hangers which ultimately pass to the customer as part of the taxable charge may be purchased exempt from tax when purchased by the cleaning establishment.
Laundries are the consumers of electricity, any product transferred electronically, and other tangible supplies or equipment which they purchase for providing their service and must pay South Dakota sales tax to their suppliers on such items or use tax to the state. Soap which is dispensed to a customer and a charge made to a customer may be purchased exempt from tax as an item for resale, however the gross receipts from items of tangible property or any product transferred electronically dispensed by a laundry are subject to sales tax.
S.D. Admin. R. 64:06:02:16
General Authority: SDCL 10-45-47.1(3), 10-46-35.1(3).
Law Implemented: SDCL 10-45-5, 10-45-2.4, 10-46-2, 10-46-2.2.