South Dakota Administrative Rules — Title 64 (Revenue)

ARSD § 64:06:03:12 — Stock used for demonstration or personal use

Items temporarily withdrawn from stock for demonstration purposes are not
subject to tax at the time of withdrawal from stock. When such items are sold
at retail, the tax applies.
Property withdrawn for purposes other
than demonstration, such as for personal use or other commercial use, is
subject to the use tax when withdrawn. If it is later sold at retail, it is
subject to sales tax on the sale price without any deduction for the use tax
paid.

Last amended: Source: SL 1975, ch 16, § 1; 11 SDR 1, effective July 19, 1984; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995. General Authority: SDCL 10-45-47.1 , 10-46-35.1. Law Implemented: SDCL 10-45-2 , 10-46-2 , 10-46-4. Examples: (1) L, a lawn mower dealer, uses a mower from stock to mow the lawn around the establishment. L must pay use tax on the use of this mower. When the mower is later resold, L must collect and remit sales t

Source: official text