South Dakota DOR Issues Contractor’s Excise Tax Guide

The South Dakota Department of Revenue July 1 issued a contractor’s excise tax guide. Individuals and entities entering into a contract for construction services or engaging in services that include the construction, building, installation, or repair of a fixture to real property must have a contractor’s excise tax license. A two percent contractor’s tax on gross receipts is imposed on primary contractors engaged in construction services or realty improvement projects. The guide includes information on: 1) the types of contractors and associated tax liabilities and exemptions; 2) the sales and use tax treatment of products and services purchases; 3) examples ...