{"data":{"id":"us-sd/sdcl-10-46-2.1--2","jurisdiction":"us-sd","citation":"SDCL § 10-46-2.1","heading":"Tax imposed on use of services--Exemptions--Related corporation defined.","body":"For the privilege of using services in South Dakota, except those types of services exempted by § 10-46-17.3, there is imposed on the person using the service an excise tax equal to four and one-half percent of the value of the services at the time they are rendered. However, this tax may not be imposed on any service rendered by a related corporation as defined in subdivision 10-43-1(11) for use by a financial institution as defined in subdivision 10-43-1(4) or on any service rendered by a financial institution as defined in subdivision 10-43-1(4) for use by a related corporation as defined in subdivision 10-43-1(11). For the purposes of this section, the term related corporation includes a corporation which together with the financial institution is part of a controlled group of corporations as defined in 26 U.S.C. § 1563 as in effect on January 1, 1989, except that the eighty percent ownership requirements set forth in 26 U.S.C. § 563(a)(2)(A) for a brother-sister controlled group are reduced to fifty-one percent. For the purpose of this chapter, services rendered by an employee for the use of his employer are not taxable.","path":["TITLE 10. TAXATION","CHAPTER 10-46. USE TAX"],"source_url":"https://sdlegislature.gov/Statutes/10-46-2.1","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:56Z","sha256":"ed360be34fab2a7cb31b7f092fcbd1f6118dc2f91092827a519d5b28abd04bb1","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-10-46-2.1","next":"us-sd/sdcl-10-46-2.2"},"notice":"GroundRules: Original legal text. Not legal advice."}