64:07:01:20.02Installation

of piping in a fuel storage and dispensing project. The person installing piping owes contractors' excise tax on the gross receipts and use tax on the piping and other materials used in the project. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. If a separate contractor digs a trench for underground piping, that contractor owes contractors' excise tax on the gross receipts and use tax on the item. However, any item used by the contractor upon which sales or use tax was paid is not subject to use tax. The contractor digging the trench does not owe contractors' excise tax on the piping.

Source: 28 SDR 69, effective November 21, 2001.