64:06:02:03.02Advertising cooperatives.

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

Gross receipts received by a franchiser as a cost share or a reimbursement for purchases of exempt advertising services made by the franchiser are not subject to sales tax if: (1) The gross receipts are paid by a franchisee to its franchiser for exempt advertising services purchased by the franchiser for the franchisee's business or the franchise; (2) The franchiser denotes the gross receipts as a cost share or reimbursement for exempt advertising services; and (3) The franchiser has documentation verifying that the gross receipts were received as a cost share or reimbursement for a specific exempt advertising service purchased by the franchiser.

Source: 24 SDR 97, effective January 25, 1998.

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

Law Implemented

SDCL 10-45-12.1 ↗
Amended by HB1138 (2025) — Reduce a maximum property tax mill levy on owner-occupied single-family dwelling
Amended by HB1191 (2025) — Subject advertising services to a gross receipts tax, and to allocate proceeds t
Amended by HB1160 (2020) — to remove the tax exemption for cosmetic medical procedures.
Amended by HB1284 (2020) — create a road improvement priority fund and to provide for the distribution of t
SDCL 10-45-2 ↗
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 HB1247 (2022) — reduce the gross receipts tax rate on retail sales and service and a certain use
Amended by HB1327 (2022) — reduce certain gross receipts tax rates and a use tax rate, and to repeal a cond
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 HB1202 (2020) — revise provisions regarding certain sales and use tax rates.
SDCL 10-45-20 ↗

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