ARSD § 64:06:02:63 — Tire treading

The gross receipts from tire retreading are subject to sales tax. If tire retreading operators purchase second hand tires and retread
them, the sale of the tires is taxable. If the customer furnishes the tire, the
entire charge for retreading the tire is subject to
sales tax. Materials which become a part of a retread tire may be purchased
exempt from tax by the tire shop. Equipment and supplies which do not become a
part of a retread tire are subject to sales tax if purchased from a licensed
vendor by a tire shop.