64:06:01:01.04Public and municipal corporations.

Gross receipts from sales to public or municipal corporations are exempt from sales tax. A public corporation or municipal corporation is one created by the state or a municipality, pursuant to authority granted by South Dakota law, for political purposes to act as an agency in the administration of civil government. The following are indicia of a public corporation or of a municipal corporation: (1) It performs a governmental function; (2) It is a nonprofit organization exempt from federal income tax; (3) It is licensed or chartered by a division of state or local government; (4) It is subject to inspection and audit accomplished or reviewed by a division of state or local government; and (5) Some statutory provision is made for the levy of state or local taxes for funding of some activity of the organization or for authority to spend funds raised by taxation.

Source: 2 SDR 40, effective December 8, 1975; 5 SDR 60, effective January 25, 1979; 13 SDR 129, 13 SDR 134, effective July 1, 1987; transferred from § 64:06:01:57, 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995.