Casual or occasional sales made by an individual who is not engaged in the business of selling at retail are not subject to the tax. Tax applies on sales made in the course of a regularly conducted retail business.

1. (1) A and her family are moving so she decides to sell some household items before leaving. She advertises that she is having a garage sale. She sells many of the things she advertised. She does not have to collect or remit sales tax on these items as she is a casual or occasional seller.
2. (2) Every summer B grows vegetables which he sells at a roadside stand. He must collect and remit sales tax on these sales as he is not a casual or occasional seller, but rather holds himself out to the public as a retailer.

Unless sales are of such a number, volume, or frequency as to indicate evasion of the tax, they are not taxable. A jobber or wholesaler who sells direct to a consumer is a retailer for that portion of the jobber's or wholesaler's business.

Each case must stand upon its own facts, but good faith is required. Taxability is the rule rather than the exception, and the rule of reason applies.

Examples:

Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995.

General Authority: SDCL 10-45-47.1.

Law Implemented: SDCL 10-45-2.