ARSD § 64:07:01:15 — Contracts with governmental agencies

64:07:01:15. Contracts
with governmental agencies. Contractors who have contracts with the United
States, the state of South Dakota, and governmental subdivisions have the same
sales or use tax liability on their purchases and materials as contractors have
with private concerns. They are not entitled to any refund of any South Dakota
sales or use tax which they may have paid. If the contractor does not buy in
the contractor's own right but is purchasing agent for the government with
title passing directly from the seller to the government, the sales or
purchases are not subject to sales tax. However, the contractor or
subcontractor is liable for use tax if the materials are used or consumed in
projects in this state. If a governmental body or sales tax exempt entity
furnishes construction materials used by the contractor in a contract, the
contractor has a use tax liability even though title never rested in the
contractor.