Charges for connection of a satellite system for homeowner use are subject to sales tax. Contractor's excise tax must be remitted on all charges for the connection of a commercial system. The cost of installing poles or lines between the satellite dish and the building is subject to the contractor's excise tax.

1. (1) A, a homeowner, contracts with B to install a satellite dish in the homeowner's yard for personal use. The cost of installation and connection of the system are subject to sales tax.
2. (2) KSD, a television station, installs a satellite system for commercial purposes. The cost of installing and connecting the system are subject to contractor's excise tax.
3. (3) The Rest Easy motel installs a satellite system for use by its patrons. The installation and connection costs are subject to the contractor's excise tax.

Examples:

Source: 16 SDR 76, effective November 1, 1989; 21 SDR 219, effective July 1, 1995.

General Authority: SDCL 10-45-47.1 , 10-46A-19 , 10-46B-18.

Law Implemented: SDCL 10-45-5.2 , 10-46A-2 , 10-46B-2.