Any lease or rental of motor vehicles, trailers, semitrailers, or aircraft that does not qualify as transportation equipment as defined in § 64:06:01:66 shall be sourced as follows:

1. (1) If the lease or rental requires recurring periodic payments, each periodic payment is sourced to the primary property location. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, provided that the use of this address does not constitute bad faith. This location may not be altered by intermittent use at different locations.

2. (2) If the lease or rental does not require recurring periodic payments, the payment is sourced as stated in § 64:06:01:63.

   This rule does not apply to the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis, or on the acquisition of property for lease.

Source: 29 SDR 177, effective July 2, 2003.

General Authority: SDCL 10-45-108.

Law Implemented: SDCL 10-45-108.