ARSD § 64:06:02:75 — Lodging establishments

Sales of supplies
and equipment to a lodging establishment are taxable. Lodging establishments
are the consumers of supplies and equipment which are consumed or used by them
in rendering their services. If the sales tax on such items is not paid to a
South Dakota licensed supplier when they are purchased, the cost of such items
must be reported as a use tax item on the sales tax return. Examples of such
items include paper cups, plastic cups, laundry bags, soap, shower caps, toilet
tissue, facial tissue, shoe polish, toilet bands, stationary, consumables and
refreshments provided as a convenience to the guest, cleaning products, and
other items consumed on the premises by the lodging establishment.
Charges to a lodging establishment by
a laundry, linen, or towel supply company are taxable. A lodging establishment does not retail such
items but purchases them or uses the services for the purpose of providing
sleeping accommodations.
Laundry and dry cleaning establishments
must report tax on their charges for services to hotel, motel, or tourist home
guests even though payment is received from the hotel, motel, or tourist
home. Hotels, motels, and tourist homes
are considered agents for laundry and dry cleaning establishments and do not report tax to the department on receipts which are
collected for a laundry or dry cleaner.