S.D. Admin. R. 64:06:02:38.01
State sales tax and municipal sales tax on a towing service shall be determined by the destination of the vehicle towed.
S.D. Admin. R. 64:06:02:38.01
General Authority: SDCL 10-45-47.1, 10-52-4.
Law Implemented: SDCL 10-45-5, 10-45-5.2, 10-52-2, 10-52-4.
Examples:
(1) A's car breaks down in a rural area of South Dakota. A hires a towing service to tow the car into the nearest town for repairs. That town is located in South Dakota and has a municipal sales tax. The place of destination determines what tax is due, so both South Dakota sales tax and the town's sales tax apply.
(2) A's car breaks down in South Dakota. A is close to the Minnesota border, so A hires a towing service to tow the car into a Minnesota town for repairs. Neither South Dakota sales tax nor any South Dakota municipal sales tax applies.
(3) A's car breaks down in a rural area of South Dakota. A's home is located close by, but not within a municipality. A hires a tow truck from the nearest town to tow the car home. South Dakota sales tax applies to the towing service, but no municipal sales tax applies because the destination is not located within a municipality.