ARSD § 64:06:03:01 — Agricultural products

Gross receipts from
sales of farm products by a farmer for resale are not subject to sales tax. If
a farmer holds out to the public as a seller of farm products and makes regular
sales to consumers, the farmer is in a retail business and must have a sales
tax license and report the tax on such sales. A farmer making occasional sales
of farm products to consumers is not required to have a sales tax license and
report sales tax on the sales.