ARSD § 64:07:01:20 — Application of contractors' excise tax to projects involving items used to store and dispense fuel

64:07:01:20. Application
of contractors' excise tax to projects involving items used to store and
dispense fuel. Any contractor installing, performing maintenance upon, or
repairing items used to store and dispense fuel are subject to contractors'
excise tax.
Any contractor installing items used to store and dispense
fuel owe contractors' excise tax on the gross receipts and use tax on the items
installed and other materials used in the project. However, items used by the
contractor upon which sales or use tax was paid are not subject to use tax.
Any contractor performing maintenance upon or repairing
items used to store and dispense fuel owe contractors' excise tax on the gross
receipts and use tax on any material used to maintain or repair the items.
However, items used by the contractor upon which sales or use tax was paid are
not subject to use tax.
Typical components of a fuel
storage and dispensing system include:
(1) Fuel storage tank which may be located above
or below ground;
(2) Fuel storage tank foundation which the fuel
storage tank rests upon. The foundation may be located above or below ground;
(3) Fuel dispenser;
(4) Island which is the foundation upon which
the fuel dispenser is placed;
(5) Submersible pump
which moves the fuel from the tank to a dispenser;
(6) Pump housing which encloses the submersible
pump;
(7) Piping which connects the fuel dispensers to
the fuel storage tanks. Piping is also used to vent the fuel storage tank and
to fill the fuel storage tanks;
(8) Spill container which collects fuel that
overflows from the fill pipe. The spill container is usually underground,
connected to the fill pipe;
(9) Wiring which brings electricity from a power
source directly to the submersible pump, fuel dispensers, lights, monitors, and
other electrical equipment;
(10) Electronic monitor which determines the
amount of fuel in the tank. It may also detect leaks in the tank. The
electronic monitor is usually mounted on or inside the fuel storage tank;
(11) Electronic monitor display unit which
displays information collected by the electronic monitor. Typically the display
unit is similar to a computer screen and is located in a building used to
control the dispensing of the fuel;
(12) Canopy which is a shelter structure over
the fuel dispensers; and
(13) Lights which are installed on or near the
island, or on the canopy to illuminate the area.