5-21-3. Surety bond to cover use tax liability--Amount of liability.
If a contract is entered into for the construction, alteration, or repair of improvements to be located in this state, including public improvements, and the contractor or subcontractor furnishes surety for the faithful performance of the contract, there is hereby imposed an additional obligation upon the surety to the State of South Dakota that the contractor or subcontractor shall promptly pay all taxes which may accrue to the State of South Dakota under the provisions of chapters 10-46, 10-46A, and 10-46B. For the purposes of this section and §5-21-4 the term, surety, means a bond or undertaking executed by a surety company authorized to do business in the State of South Dakota.
Source: SL 1957, ch 479, §§1, 2; SDC Supp 1960, §65.0702-1; SL 1992, ch 48, §1.
Structure South Dakota Codified Laws
Title 5 - Public Property, Purchases and Contracts
Chapter 21 - Performance Bonds For Public Improvement Contracts
Section 5-21-1 - Surety bond required--Obligation of prompt payment of laborers and materialmen.
Section 5-21-1.1 - Waiver of performance security requirement on contracts under certain amount.
Section 5-21-1.3 - Waiver of performance security requirement for emergency procurement.
Section 5-21-3 - Surety bond to cover use tax liability--Amount of liability.
Section 5-21-8 - Personal and public notice to creditors of action on public contractor's bond.