Sales Tax Articles
Sales Tax State Activity Update - March 2007
A Bouncing Bundle of Telecom Services Examined in South Dakota
The Governor of South Dakota, Mike Rounds (R.), has approved legislation revising the definition of bundling for sales tax purposes.
Sales tax applies to the entire gross receipts received from the sale of a bundled transaction.
However, if a bundled transaction includes any of the following:
- Telecommunication services
- Ancillary services
- Internet access
- Audio or video programming services
Then the portion of the price attributable to the nontaxable sales will be subject to tax unless the provider can identify by reasonable and verifiable standards such portion from its books and records kept in the regular course of business.
(H.B. 1047, signed by the Governor on 2/7/07)
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