Interstate sales -- Originating in South Dakota

Tax does not extend to gross receipts from sales in which the seller is obligated under the terms of the agreement to make physical delivery of the goods sold, from a point in the state to a point outside the state, not to be returned to a point within the state. Written evidence of the contract of sale must be retained by the retailer to prove physical delivery was made outside South Dakota. Tax does not apply to receipts from a sale if the seller, by carrier or mail, delivers goods sold from a point in this state to a point outside the state on order of the buyer not to be returned to South Dakota. The most acceptable proof delivery was made outside the state will be:

# (1)

A bill of lading or weight bill made out to the seller's order and calling for delivery;

# (2)

An insurance receipt or registry issued by the United States postal department, or a post office department receipt; or

# (3)

A receipt of delivery signed by the seller's delivery agent showing the signature and address of the person outside this state who received the goods delivered. It is immaterial whether the goods are sold f.o.b. origin or f.o.b. destination.

Last amended: Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995. General Authority: SDCL 10-45-47.1(3). Law Implemented: SDCL 10-45-9.

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