Statutes, codes, and regulations
South Dakota Administrative Rules
Title 64 - REVENUEArticle 64:06 - Sales tax
Chapter 64:06:03 - Products - Interpretive rules
Section 64:06:03:36 - Vendors of property used for premiums, advertising, and prizes

S.D. Admin. R. 64:06:03:36

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Current through Register Vol. 50, page 162, June 24, 2024
Section 64:06:03:36 - Vendors of property used for premiums, advertising, and prizes

Persons engaged in the business of selling tangible personal property and any product transferred electronically to purchasers who give such property away in the advertising of their business or products, as premiums in connection with the sale of any other property, as prizes, or for any other reason are engaged in the business of selling tangible personal property and products transferred electronically for use or consumption and not for resale. Such vendors must have a retail sales tax license and collect sales tax on all items used for advertising purposes, premiums, or prizes.

S.D. Admin. R. 64:06:03:36

SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective 7/1/1987; 16 SDR 76, effective 11/1/1989; 21 SDR 219, effective 7/1/1995; 35 SDR 48, effective 9/8/2008.

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

Law Implemented: SDCL 10-45-2, 10-45-2.4, 10-46-2, 10-46-2.2.

Example: A bar gives away beer hats to its customers as an advertising gimmick. The person selling the hats to the bar must collect and remit sales tax on the hats.