ENTITLED, An Act to
revise certain sales and use tax provisions related to products and
substances associated with the application of pesticides and to clarify the definition of
pesticides.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That
§
10-45-16.2
be amended to read as follows:
10-45-16.2.
There are specifically exempted from the tax imposed by this chapter, gross
receipts from the rental of devices primarily used to apply fertilizers
,
and
pesticides,
and herbicides
and insecticides
as defined in
§
38-20A-1,
for agricultural purposes, if sales tax or use tax was paid
upon the original purchase of the device.
Section
2.
That
§
10-46-17.5
be amended to read as follows:
10-46-17.5.
The use in this state of
insecticides, herbicides,
pesticides
, rodenticides, and
fumigants
as defined in
§
38-20A-1
to be used exclusively for agricultural purposes is specifically
exempted from the tax imposed by this chapter.
Any product or substance to be used in
conjunction with the application or use of pesticides for agricultural purposes is also exempt.
These products or substances include adjuvants, surfactants, ammonium sulfate, inoculants, drift
retardants, water conditioners, seed treatments, foam markers, and foam dyes. Equipment for the
application of pesticides and related products and substances is not exempt.
The tax imposed by
this chapter on endoparasiticides and ectoparasiticides shall be deposited in the veterinary student
tuition and animal disease research and diagnostic laboratory fund to be used for veterinary student
tuition grants and the operations and activities conducted by the State Animal Disease Research
and Diagnostic Laboratory established in § 13-58-13.
Section
3.
That chapter
10-46
be amended by adding thereto a NEW SECTION to read as
follows:
There is specifically exempted from the provisions of this chapter and from the computation
of the amount of tax imposed by it, the rental of devices primarily used to apply fertilizers and
pesticides, as defined in
§
38-20A-1, for agricultural purposes.