ARSD § 64:06:01:08 — Exemption certificates

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64:06:01:08. Exemption certificates. Receipts from the
sale of tangible personal property or any product transferred electronically
are presumed to be exempt if the buyer has furnished an exemption certificate.
A new exemption certificate is not needed for each sale.
Electricians, plumbers, and other
similar contractors who maintain a retail store, in addition to contracting out
their services, may purchase all electrical, plumbing, and related merchandise
from jobbers, wholesalers, or manufacturers for resale and give an exemption
certificate. All items removed from inventory and used in the performance of a
contract are subject to use tax. Use tax on materials used in contract work
must be paid on the cost of such materials.
Electricians, plumbers, and other
similar contractors who are not retailers may not hold a tax permit, but may
take credit on their excise tax return for amounts paid to suppliers as sales
tax if the item purchased is later resold rather than used. Sales must then be
reported and tax paid on the amount of the sale.
In order to purchase ingredient or
component parts exempt from tax, processors and manufacturers must be licensed
and must furnish their suppliers with exemption certificates.