Gross receipts from sales of farm products by a farmer for resale are not subject to sales tax. If a farmer holds out to the public as a seller of farm products and makes regular sales to consumers, the farmer is in a retail business and must have a sales tax license and report the tax on such sales. A farmer making occasional sales of farm products to consumers is not required to have a sales tax license and report sales tax on the sales.

Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995.

General Authority: SDCL 10-45-47.1.

Law Implemented: SDCL 10-45-18.