10-46A-2.1. Subcontractors--Definition--Certificate issued by prime contractor--Tax liability--Misuse of certificate--Government entities not to issue certificates.
For the purpose of this chapter, a subcontractor is a person contracting with a prime contractor to perform all or part of a realty improvement the prime contractor has contracted to perform. For highway construction projects, a subcontractor includes any person contracting with a prime contractor to perform any of the following services as part of the project: traffic control, striping, flagging, operation of pilot cars, signing, landscaping, seeding, sodding, mulching, and erosion control. A prime contractor shall issue a certificate to a subcontractor showing the prime contractor's valid contractors' excise tax license number. The form shall be prescribed by the secretary of revenue. Any subcontractor who fails to retain a certificate and a record of project designations is considered a prime contractor and is subject to tax under this chapter. Any person not a prime contractor who provides a certificate is liable for tax equal to the amount of tax the person accepting the certificate would have been liable for if the certificate had not been issued. The tax is due at the time the person accepting the certificate would have been required to pay the tax. In addition to any tax or interest due, persons who are not prime contractors providing certificates are liable for a penalty of ten percent of the tax. The United States, the State of South Dakota, or any other state or public or municipal corporation in this state may not issue a certificate.
Source: SL 1984, ch 92, §6; SL 1990, ch 94; SL 2003, ch 272 (Ex. Ord. 03-1), §82; SL 2011, ch 1 (Ex. Ord. 11-1), §161, eff. Apr. 12, 2011.
Structure South Dakota Codified Laws
Chapter 46A - Realty Improvement Contractor's Excise Tax
Section 10-46A-1.1 - Effective date--Application to contracts, sales and change orders.
Section 10-46A-1.2 - Contracts subject to tax imposed by chapter 10-46B.
Section 10-46A-1.3 - Tax measured by gross receipts upon accrual basis.
Section 10-46A-1.4 - Payment of tax on cash basis.
Section 10-46A-1.5 - Taxes on receipts of worthless accounts.
Section 10-46A-2 - Prime contractors and subcontractors subject to tax.
Section 10-46A-2.2 - Prime contractor--Definition.
Section 10-46A-3 - Total contract price as basis of tax--Purchased materials.
Section 10-46A-4 - Gross receipts defined--Items not deductible.
Section 10-46A-7 - Administration of tax--Sales tax provisions applicable.
Section 10-46A-8 - Report and payment of tax.
Section 10-46A-11 - Municipal tax on contractors--Rate--Restitution.
Section 10-46A-12.2 - When building permit not required.
Section 10-46A-13.1 - Violation of chapter as criminal offense--Classification.
Section 10-46A-14 - Restriction on application of rate increase.
Section 10-46A-15 - Contractor's excise tax license required--Application.
Section 10-46A-16 - Issuance of license--Assignment prohibited.
Section 10-46A-17 - Refusal to issue license for failure to pay tax--Bond.
Section 10-46A-18 - Exemption for floor laying.
Section 10-46A-18.1 - Exemption of repair shops, locksmiths, and locksmith shops.