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State of South Dakota
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EIGHTY-SEVENTH SESSION
LEGISLATIVE ASSEMBLY, 2012
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147T0513
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SENATE BILL NO. 61
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Introduced by: Senators Begalka, Bradford, Frerichs, Hansen (Tom), Hundstad, Lederman,
Maher, Novstrup (Al), Olson (Russell), Rave, Rhoden, and Sutton and
Representatives Greenfield, Brunner, Deelstra, Dennert, Feickert, Gosch,
Hawley, Hoffman, Hubbel, Jensen, Kloucek, Lucas, Magstadt, Nelson
(Stace), Olson (Betty), Rausch, Russell, Sigdestad, Street, Stricherz, Tornow,
Tulson, and Verchio
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FOR AN ACT ENTITLED, An Act to exempt the production of certain plants and sod from
sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as
follows:
The production of any sod and any nursery, greenhouse, food-bearing, and ornamental plant
is considered an agricultural purpose. If the sod and plants are raised with the intent to be
ultimately sold at retail, the following products are hereby specifically exempted from the tax
imposed by chapter 10-45, if the products are directly used in the production of the sod or
plants:
(1) Any pesticide as defined in § 38-20A-1 and any product or substance used in
conjunction with the pesticide as enumerated in § 10-45-16.1;
(2) Commercial fertilizer as defined in subdivision 38-19-1(5); and
(3) Fuel for agricultural purposes as defined in § 10-45-19.
No horticultural enterprise may receive the exemption pursuant to this section unless the
horticultural enterprise is a resident nurseryman, as defined in subdivision 38-24B-1(11),
licensed by the South Dakota Department of Agriculture; a permanent standing greenhouse
operating for more than three months per year, in which the main enterprise is the raising of
plants from a seed, seedling, plug, or cutting to finish as a saleable product; a grower of sod as
defined in subdivision 38-24B-1(14); or a commercial grower of fruits and vegetables if the
products are ultimately offered for sale at retail.
Section 2. That chapter 10-46 be amended by adding thereto a NEW SECTION to read as
follows:
The production of any sod and any nursery, greenhouse, food-bearing, and ornamental plant
is considered an agricultural purpose. If the sod and plants are raised with the intent to be
ultimately sold at retail, the following products are hereby specifically exempted from the tax
imposed by chapter 10-46, if the products are directly used in the production of the sod or
plants:
(1) Any pesticide as defined in § 38-20A-1 and any product or substance used in
conjunction with the pesticide as enumerated in § 10-45-16.1;
(2) Commercial fertilizer as defined in subdivision 38-19-1(5); and
(3) Fuel for agricultural purposes as defined in § 10-45-19.
No horticultural enterprise may receive the exemption pursuant to this section unless the
horticultural enterprise is a resident nurseryman, as defined in subdivision 38-24B-1(11),
licensed by the South Dakota Department of Agriculture; a permanent standing greenhouse
operating for more than three months per year, in which the main enterprise is the raising of
plants from a seed, seedling, plug, or cutting to finish as a saleable product; a grower of sod as
defined in subdivision 38-24B-1(14); or a commercial grower of fruits and vegetables if the
products are ultimately offered for sale at retail.