ARSD § 64:06:03:43 — Water and gravel haulers

Operators of
gravel pits are retailers of gravel subject to tax and the haulers of water,
except bulk water for domestic use, are engaged in making taxable sales. When
customers take delivery of gravel at the pit or water at the source of supply,
the charge is subject to tax. If a customer employs a trucker who is a licensed
carrier for hire to haul gravel or water, the seller shall report the tax on
the charge for the gravel or water.
If operators of gravel pits or sellers
of water deliver with their own truck or employ someone to deliver for them to
a place designated by the buyer, the entire charge, including cost of delivery,
is subject to sales tax.
If the operator or buyer uses the
gravel in making a realty improvement, the gravel is subject to the state sales
or use tax upon the greater of the purchase price or the fair market value even
if the gravel is furnished by an exempt entity.