Sales Tax State Activity Update - May 2004

Transportation Services Exempt from Sales Tax in South Dakota

A recently enacted House Bill by the Utah Legislators exempts gross receipts of certain transportation services from sales and use tax. The Bill amends § 10-45-12.1 by exempting trucking and courier services, except for air. In addition, sales and use tax on transportation services within the state is repealed. § 10-45-12.1 also exempts the following:

• Railroad transportation.
• Local and suburban passenger transportation.
• Establishments primarily engaged in transportation on rivers and canals.
• Establishments primarily engaged in air transportation, certified carriers.
• Establishments primarily engaged in air transportation, noncertified carriers.
• Airplane, helicopter, balloon, dirigible, and blimp rides for amusement or sightseeing.
• Pipelines, except natural gas.
• Rental of railroad cars.
• Rentals of motor vehicles as defined by § 32-5-1 leased under a single contract for more than twenty-eight days.
  
  

The full text of the Bill is available at: http://legis.state.sd.us/sessions/2004/bills/HB1180enr.pdf

(House Bill 1180, Signed by the Governor 03/09/2004{Effective 90 days from date of Signature}) 05/04

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