The sale of food and all other items of tangible personal property or any product transferred electronically to hospital patients (except those sales exempted by SDCL 10-45-14.6), visitors, employees, officials, members, and others is subject to sales tax. Sales to patients of drugs prescribed by prescription are exempt. Sales tax on food furnished to patients shall be computed at $9.66 per patient day.

Newborn care is not included as patient care for purposes of sales tax on food furnished to patients.

If subsistence is allowed or granted to a hospital employee in lieu of salary, sales tax shall be remitted on the basis of $69 per person per month.

Declaratory Ruling: Public alcohol treatment facilities approved and funded by the state division of alcoholism are not political subdivisions of the state and are not exempt from sales tax. Secretary of Revenue Declaratory Ruling No. 80-4.

Source: 2 SDR 2, effective July 17, 1975; 7 SDR 80, effective February 22, 1981; 12 SDR 111, effective January 12, 1986; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 15 SDR 58, effective October 19, 1988; 21 SDR 219, effective July 1, 1995; 29 SDR 177, effective July 2, 2003; 35 SDR 48, effective September 8, 2008.

General Authority: SDCL 10-45-47.1(3).

Law Implemented: SDCL 10-45-2 , 10-45-2.4 , 10-45-14 , 10-45-14.1 , 10-45-14.6.