Sales and use tax reciprocity on farm equipment.
ENTITLED, An Act to
provide reciprocity for sales, use, or gross receipts tax paid on farm
equipment purchased in another state or political subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
be amended by adding thereto a NEW SECTION to read as
The amount of any use tax imposed with respect to the sale or lease of farm machinery,
attachment units, and irrigation equipment shall be reduced by the amount of any sales, use, or
gross receipts tax previously paid by the taxpayer with respect to the property on account of
liability to another state or its political subdivisions. If the sales, use, or gross receipts tax of the
other state is less than the tax of this state, the taxpayer is liable for the payment of the balance to
this state. However, no credit may be given under this section if that state does not reciprocally
grant a credit for taxes paid on similar tangible personal property.
Signed February 1, 2007