South Dakota § 10-46-2.1 Tax on use of services--Exemptions--Related corporation defined.

South Dakota Statutes

§ 10-46-2.1 — Tax on use of services--Exemptions--Related corporation defined.

South Dakota § 10-46-2.1

Title 10TAXATION

Ch. 10-45DUSE TAX

This text of South Dakota § 10-46-2.1 (Tax on use of services--Exemptions--Related corporation defined.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 10-46-2.1 (2026).

Text

For the privilege of using services in South Dakota, except those types of services exempted by § 10-46-17.3 , there is imposed on the person using the service an excise tax equal to four and two-tenths percent of the value of the services at the time they are rendered. However, this tax may not be imposed on any service rendered by a related corporation, as defined in subdivision 10-43-1 (11), for use by a financial institution, as defined in subdivision 10-43-1 (4); or on any service rendered by a financial institution, as defined in subdivision 10-43-1 (4), for use by a related corporation as defined in subdivision 10-43-1 (11). For the purposes of this section, the term, related corporation, includes a corporation, which together with the financial institution, is part of a controlled 

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For the privilege of using services in South Dakota, except those types of services exempted by § 10-46-17.3 , there is imposed on the person using the service an excise tax equal to four and two-tenths percent of the value of the services at the time they are rendered. However, this tax may not be imposed on any service rendered by a related corporation, as defined in subdivision 10-43-1 (11), for use by a financial institution, as defined in subdivision 10-43-1 (4); or on any service rendered by a financial institution, as defined in subdivision 10-43-1 (4), for use by a related corporation as defined in subdivision 10-43-1 (11). For the purposes of this section, the term, related corporation, includes a corporation, which together with the financial institution, is part of a controlled group of corporations, as defined in 26 U.S.C. § 1563 as in effect on January 1, 1989, except that the eighty percent ownership requirements set forth in 26 U.S.C. § 563(a)(2)(A) for a brother-sister controlled group are reduced to fifty-one percent. For the purpose of this chapter, services rendered by an employee for the use of the employer are not taxable. For the privilege of using services in South Dakota, except those types of services exempted by § 10-46-17.3 , there is imposed on the person using the service an excise tax equal to four and one-half percent of the value of the services at the time they are rendered. However, this tax may not be imposed on any service rendered by a related corporation as defined in subdivision 10-43-1 (11) for use by a financial institution as defined in subdivision 10-43-1 (4) or on any service rendered by a financial institution as defined in subdivision 10-43-1 (4) for use by a related corporation as defined in subdivision 10-43-1 (11). For the purposes of this section, the term related corporation includes a corporation which together with the financial institution is part of a controlled group of corporations as defined in 26 U.S.C. § 1563 as in effect on January 1, 1989, except that the eighty percent ownership requirements set forth in 26 U.S.C. § 563(a)(2)(A) for a brother-sister controlled group are reduced to fifty-one percent. For the purpose of this chapter, services rendered by an employee for the use of his employer are not taxable.

Legislative History

SL 1979, ch 84, § 6D; SL 1980, ch 325, § 21; SL 1983, ch 97, § 2; SL 1987, ch 98, § 10; SL 1988, ch 106, § 1; SL 1989, ch 110, § 2; SL 2016, ch 65, § 9, eff. June 1, 2016; SL 2023, ch 32, § 9.