64:06:01:08.03Sale of service for resale.

Section · Administrative Rules of South Dakota · View on sdlegislature.gov ↗

Services which are purchased by a service provider and delivered to a current customer in conjunction with the services contracted to be provided to the customer are considered to be for resale. Receipts from the sale of a service for resale by the purchaser are not subject to sales tax if the purchaser furnishes an exemption certificate. In order for the transaction to be a sale for resale, the following conditions must be present: (1) The service is purchased for or on behalf of a current customer; (2) The purchaser of the service does not use the service in any manner; and (3) The service is delivered or resold to the customer without any alteration or change.

Source: 18 SDR 3, effective July 14, 1991; 20 SDR 103, effective January 10, 1994; 21 SDR 219, effective July 1, 1995; 28 SDR 178, effective July 1, 2002; 33 SDR 226, effective June 27, 2007.

General Authority

SDCL 10-45-47.1 ↗
Amended by SB177 (2025) — Provide a sales and use tax refund for goods and services related to data center
Amended by SB138 (2023) — provide for the distribution of tax revenue from certain sales occurring on fair
Amended by HB1287 (2020) — provide exemption of certain taxes for certain nursing home providers and commun
SDCL 10-46-35.1 ↗

Law Implemented

SDCL 10-45-1 ↗
Amended by HB1281 (2026) — reduce the sales and use tax rates on food, to increase the rates for certain ta
Amended by SB164 (2024) — lower the state sales tax rate and the state use tax rate on food to zero percen
Amended by SJR510 (2024) — To refer to the voters the question of whether this state should lower the state
Amended by HB1075 (2023) — lower the state sales tax rate and the state use tax rate on food to zero percen
Amended by HB1095 (2023) — lower the state sales tax rate and the state use tax rate on food to two and one
Amended by HB1096 (2023) — lower the state sales tax rate and the state use tax rate on food to three and o
Amended by HB1159 (2023) — exempt feminine hygiene products from the state sales tax.
Amended by SB166 (2022) — reduce the rate of gross receipts tax on certain food.
Amended by SB104 (2021) — reduce the rate of sales tax on certain food.
Amended by HB1160 (2020) — to remove the tax exemption for cosmetic medical procedures.
SDCL 10-45-20 ↗
SDCL 10-45-4 ↗
SDCL 10-45-4.1 ↗
SDCL 10-46-2.1 ↗
Amended by HB1281 (2026) — reduce the sales and use tax rates on food, to increase the rates for certain ta
Amended by HB1308 (2026) — reduce certain property taxes for owner-occupied property, and to increase the r
Amended by SB99 (2026) — create the property tax local effort replacement fund, to reduce certain propert
Amended by SJR507 (2026) — proposing and submitting to the voters at the next general election, an amendmen
Amended by HB1019 (2025) — Eliminate certain property taxes levied on owner-occupied single-family dwelling
Amended by SB121 (2025) — Reduce maximum values for certain property taxes levied on owner-occupied single
Amended by SB164 (2024) — lower the state sales tax rate and the state use tax rate on food to zero percen
Amended by SJR510 (2024) — To refer to the voters the question of whether this state should lower the state
Amended by HB1137 (2023) — reduce certain gross receipts tax rates and a use tax rate, and to repeal a cond
Amended by HB1202 (2020) — revise provisions regarding certain sales and use tax rates.

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