10-46-2.1. Tax on use of services--Exemptions--Related corporation defined.
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/sd/title-10/chapter-10-46/10-46-2-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.