FOR AN ACT ENTITLED, An Act to exempt certain postage and markup for handling from sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 10-45-94 be amended to read as follows:
    10-45-94. There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, the gross receipts received by a direct mail service for the cost of United States postage paid by the direct mail service if the cost of postage, including any markup that is reasonable and customary in the seller's industry, is listed by the direct mail service as a separate line item on the customer's bill.

    For the purposes of this section, a direct mail service is any business that prepares direct mail.
    Section 2. That subdivision (4) of § 10-45-1 be amended to read as follows:

            (4)    "Delivery charges," charges by the retailer for preparation and delivery to a location designated by the purchaser of tangible personal property, any product transferred electronically, or services including transportation, shipping, postage, handling,

crating, and packing. The term does not include postage for direct mail;

    Section 3. That subdivision (3) of § 10-46-1 be amended to read as follows:

            (3)    "Delivery charges," charges by the retailer for preparation and delivery to a location designated by the purchaser of tangible personal property, any product transferred electronically, or services including transportation, shipping, postage, handling, crating, and packing. The term does not include postage for direct mail;