The sourcing rules in §§ 64:06:01:62 to 64:06:01:68, inclusive, apply regardless of the characterization of a product as tangible personal property, a product transferred electronically, or a service. The sourcing rules in §§ 64:06:01:62 to 64:06:01:68, inclusive, are used to determine a seller's obligation to collect and remit a sales or use tax with respect to the seller's retail sale of a product. These provisions do not apply to the obligation of a purchaser or lessee to pay tax on the use of a product. The sourcing rules in §§ 64:06:01:62 to 64:06:01:68, inclusive, do not apply to sales or use taxes on:

1. (1) The retail sale or transfer of watercraft, modular homes, manufactured homes, and mobile homes;
2. (2) The retail sale, excluding lease or rental, of motor vehicles, trailers, semitrailers, or aircraft that do not qualify as transportation equipment in § 64:06:01:68; and
3. (3) Telecommunication services. Telecommunication services are sourced according to §§ 64:06:02:90 to 64:06:02:92, inclusive.

Source: 29 SDR 177, effective July 2, 2003; 35 SDR 48, effective September 8, 2008.

General Authority: SDCL 10-45-108.

Law Implemented: SDCL 10-45-108.