SDCL § 10-59-31: Reduction of taxes, interest, and penalty upon bona fide misunderstanding and good faith effort.

The secretary may reduce or abate the taxes, interest, and penalty relating to certain transactions in cases where the taxpayer can show that there is bona fide misunderstanding of the application of the taxes to the transactions, and that the taxpayer made a good faith effort to determine the taxability of the transactions through communications with the department.