S.D. Admin. R. 64:27:01:16

Current through Register Vol. 51, page 67, December 16, 2024

Section 64:27:01:16 - Limitations of deductions

Deductions allowed in SDCL 10-39-45.2(6) are limited to expenditures incurred in production activities in this state.

S.D. Admin. R. 64:27:01:16

2 SDR 21, effective 9/18/1975; 13 SDR 129, 13 SDR 134, effective 7/1/1987; 21 SDR 219, effective 7/1/1995.

General Authority: SDCL 10-39-49.

Law Implemented: SDCL 10-39-45.2(6).

Declaratory Ruling: The formula for determining net profit for mineral extraction tax on profit of minerals extracted in-state and shipped out-of-state for processing, where N = net profit, G = total gross yield, AS = in-state administrative costs and salaries, TS = South Dakota state and local taxes, CS = allowable costs incurred in-state, CO = allowable costs incurred out-of-state, and GS = gross yield from South Dakota minerals, is as follows:

N = GS - (AS + TS + CS) - CO x GS

G

Secretary of Revenue Declaratory Ruling No. 77-9.