General contractors are liable for use tax due on all items of tangible personal property or any product transferred electronically used, stored, or consumed in the performance of their contract including those portions of the contract performed by subcontractors.

Declaratory Ruling: A contractor who installs a pipe organ in a church is subject to sales and use tax on the materials used in performance of the contract. Secretary of Revenue Declaratory Ruling No. 78-1.

Source: 2 SDR 40, effective December 8, 1975; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 35 SDR 48, effective September 8, 2008.

General Authority: SDCL 10-46-35.1(3).

Law Implemented: SDCL 10-46-5.