ARSD § 64:06:02:08 — Blacksmiths and welders

Blacksmiths and
welders are liable for tax on their receipts from the sales of tangible
personal property and their services.
If a blacksmith makes or fabricates
and sells a new article to a customer the blacksmith is liable for tax measured
by the total gross receipts from the sale of this article, with no deduction
for cost of production from the selling price.
Sales of tangible personal property to
blacksmiths and welders, such as iron, steel, and metal for soldering for use
either in manufacture of tangible personal property or in connection with
repair work, are sales for the purpose of resale which are exempt from tax.
Sales of oxygen, acetylene, blacksmith's coal or electrical energy are sales
for consumption and taxable. Unless merchandise sold becomes an integral part
in the manufacture or repair of personal property, the seller to the blacksmith
must charge sales tax. If South Dakota sales tax has not been paid to a
licensed vendor on supplies which do not become an integral part of the
manufactured or repaired property, the cost of the supplies must be entered as
a use tax item on the sales tax return.