If merchandise is sold to a customer who finds a defect in the goods and secures an allowance on the purchase price, the seller may deduct from gross receipts any amount allowed for defects.

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

General Authority: SDCL 10-45-47.1.

Law Implemented: SDCL 10-45-2.