Payments made by one member of the controlled group to another member of a controlled group which represent an allocation, reimbursement, or charge for services provided by or rendered by the members of the controlled group are specifically exempted from the provisions of this chapter and the computation of the tax imposed by it. The exemption provided in this section does not apply to the lease of tangible personal property or any product transferred electronically unless the sales or use tax has been paid on the property by the lessor.
S.D. Codified Laws § 10-45-20.1
Exemption of payments between members of controlled group--Exception
Applied in 1 court decision — leading case Midwest Railcar Repair, Inc. v. South Dakota Department of Revenue (2015)
Most recently applied in Midwest Railcar Repair, Inc. v. South Dakota Department of Revenue (November 2015)
Source: SL 1983, ch 93, § 1; SL 1989, ch 109, § 1; SL 2004, ch 95, § 1; SL 2008, ch 51, § 21.
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.