64:06:02:78Computer services -- Software.

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

The gross receipts from the sale of computer software, technical services and attendant appliances, equipment, and facilities are subject to the retail occupational sales tax. A computer is an electronic device that accepts information in digital or similar form and manipulates the information for a result based on a sequence of instructions. Computer software is a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. The following are examples of the services, appliances, equipment, and facilities which are taxable: (1) Tangible personal property or any product transferred electronically such as instructions, directions, models, and layout sheets which are elements of technical service transactions; (2) Designing and implementing of computer systems; (3) Designing of storage and data retrieval systems; (4) Consulting services; (5) Feasibility studies; (6) Evaluation of bids; (7) Providing of technical assistance; (8) Fees or access charges for access to data bases or networks; and (9) Fees or access charges for access to software, programs, or computer systems.

Source: 2 SDR 40, effective December 8, 1975; 7 SDR 80, effective February 22, 1981; 12 SDR 111, effective January 12, 1986; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005; 35 SDR 48, effective September 8, 2008.

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 10-45-2 ↗
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 10-45-2.4 ↗
SDCL 10-45-4 ↗
SDCL 10-45-5.2 ↗

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