- Supreme Court Ruling Impact: A recent South Dakota Supreme Court decision has clarified that use tax applies to untaxed materials stored in the state, not just when they are used in projects, changing previous interpretations of state law.
- Immediate Tax Liability: As a result of this ruling, the South Dakota Department of Revenue mandates that contractors and businesses purchasing materials out-of-state must now pay use tax upon storage of those materials in South Dakota.
- Change from Previous Law: Previously, contractors could delay use tax payments until the materials were utilized in a project; however, the new ruling establishes immediate tax liability upon storage, impacting how businesses manage their tax obligations.
Source Deloitte
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