Gross receipts received by a retailer as a cost share or a reimbursement for purchases of exempt advertising services made by the retailer are not subject to sales tax if:
- (1) The gross receipts are paid by a manufacturer or supplier to the retailer for including the manufacturer's or supplier's identity in the retailer's advertisement;
- (2) The retailer denotes the gross receipts as a cost share or reimbursement for exempt advertising services; and
- (3) The retailer has documentation verifying that the gross receipts were received as a cost share or reimbursement for a specific exempt advertising service purchased by the retailer.
Source: 24 SDR 97, effective January 25, 1998.
General Authority: SDCL 10-45-47.1.
Law Implemented: SDCL 10-45-2 , 10-45-12.1 , 10-45-20.