S.D. Admin. R. 64:07:01:02
Gross receipts includes the total amount received in consideration of the performance of a realty improvement contract without deductions for any expenses. If a contractor chooses to include the amount of the tax in the contract price, this amount may not be deducted in determining taxable receipts. For purposes of SDCL chapter 10-46 B, gross receipts does not include any internal charges or allocations among or between a parent telecommunications company subject to tax under SDCL chapter 10-33 and any wholly-owned subsidiaries thereof or between two subsidiaries that are both wholly owned by the same parent company if the recipient of the services is a telecommunications company subject to tax under SDCL chapter 10-33.
S.D. Admin. R. 64:07:01:02
General Authority: SDCL 10-46A-19, 10-46B-18.
Law Implemented: SDCL 10-33-26, 10-46A-4, 10-46B-4.
Revenue Ruling: Contractors must pay the contractors' excise tax on receipts from work done for the state and other governmental entities. The tax is to be computed on the total receipts received regardless of whether the receipt is characterized as material, labor, overhead, profit or excise tax. Secretary of Revenue's Revenue Ruling No. 79-3.