The laying of sod or the planting of seeds is subject to sales tax. If sodding or seeding is done in conjunction with earth moving or landscaping, it is subject to the contractor's excise tax.

1. (1) A retaining wall is installed, contouring of the yard is done, and the lawn is sodded under one contract. This is subject to excise tax.
2. (2) The contractor merely levels the dirt, then lays the sod. This is subject to sales tax.
3. (3) A contractor received the bid to put up a fence and seed the highway ditch in a single contract. This is subject to 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-1 , 10-46B-1.