CHAPTER 47

(HB 1081)

Parts and labor for agricultural machinery and equipments
exempt from sales and use tax.


         ENTITLED, An Act to  exempt from the sales and use taxes certain maintenance items used on agricultural machinery and equipment and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 10-45-3.4 be amended to read as follows:

     10-45-3.4.   There are exempted from the provisions of this chapter and the tax imposed by it, gross receipts from the sale of parts the following:

             (1)    Parts or repairs on machinery or equipment which are clearly identifiable as used primarily for agricultural purposes, including irrigation equipment, if the part replaces a farm machinery or irrigation equipment part assigned a specific or generic part number by the manufacturer of the farm machinery or irrigation equipment ; and

             (2)    Maintenance items and maintenance services used on machinery or equipment which are clearly identifiable as used primarily for agricultural purposes, including irrigation equipment .

     Section  2.  That § 10-46-17.6 be amended to read as follows:

     10-46-17.6.   There are exempted from the provisions of this chapter and the tax imposed by it, the use of parts the following:

             (1)    Parts or repairs on machinery or equipment which are clearly identifiable as used primarily for agricultural purposes, including irrigation equipment, if the part replaces a farm machinery or irrigation equipment part assigned a specific or generic part number by the manufacturer of the farm machinery or irrigation equipment ; and

             (2)    Maintenance items and maintenance services used on machinery or equipment which are clearly identifiable as used primarily for agricultural purposes, including irrigation equipment .

     Section  3.  Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 2, 2006
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