Mining companies are the consumers of all materials and supplies purchased for their mining operations except property which becomes a component part of the product produced for resale. As consumers, the mining companies must pay sales tax to suppliers or use tax to the state.

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 , 10-46-35.1.

Law Implemented: SDCL 10-45-2 , 10-46-2.