ARSD § 64:07:01:13 — Contractors as consumers of construction supplies

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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.