Contractors as consumers of construction supplies

lrpr14533 lrpr14296
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2008-09-08T19:17:00Z
2008-09-08T19:17:00Z
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State of South Dakota
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10.6839
Clean
MicrosoftInternetExplorer4
64:07:01:13. Contractors as consumers of construction supplies. All contractors or subcontractors, regardless of the kind of contract, engaged in construction work, erecting buildings, building highways, or realty improvements are the consumers of materials and supplies purchased by them for use in their contract work.
Suppliers who are licensed under the South Dakota sales and use tax law must remit sales or use tax to the state on sales of materials and supplies to contractors. Contracts referred to in this section are those which do not constitute a sale of tangible personal property. Since they are not sales of tangible personal property, the contractor may not purchase for resale supplies and materials and must pay sales or use tax on the purchases. If the contract is a mixed contract in which some tangible personal property or any product transferred electronically is furnished, the contractor is considered the consumer of all property.