Sales Tax Exemption

SDCL 10-45-10 exempts from sales tax the sale of products and services to the following governmental entities.

  • Indian Tribes
  • United States government agencies
  • State of South Dakota and public or municipal corporations of the
    State of South Dakota
  • Municipal or volunteer fire or ambulance departments
  • Public schools, including K-12, universities, and technical institutes
    that are supported by the State of South Dakota or public or municipal
    corporations of South Dakota

Government entities must provide an exemption certificate to the vendor or the vendor must keep documentation
to show the purchase was paid from government funds. Documentation may include a purchase order or a check stub.

SDCL 10-45-10.   Exempt sales to states, municipalities, charities and Indian tribes. There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal property and the sale, furnishing or service of electrical energy, natural and artificial gas and communication service to the United States, to the State of South Dakota or to any other state of the United States or the District of Columbia if the other state provides a reciprocal exemption for South Dakota, to public or municipal corporations of the State of South Dakota or of any other state of the United States or the District of Columbia if the other state provides a reciprocal exemption to South Dakota public or municipal corporations, to any nonprofit charitable organization which devotes its resources exclusively to the relief of the poor, distressed or underprivileged, and has been recognized as an exempt organization under §   501(c)(3) of the Internal Revenue Code, or to any Indian tribe.

For more information contact the Department of Revenue at 1-800-TAX-9188 or visit their website
at http://dor.sd.gov.

Click here for a copy of the Department of Revenue letter regarding Sales Tax Exemption. You must
have Acrobat Reader 4.0 or higher to open the file.

Click here for the Department of Revenue Certificate of Exemption form and instructions. You
must have Acrobat Reader 4.0 or higher to open the file.