An Act to exempt feminine hygiene products from the state sales tax.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 10-45-1 be AMENDED:
10-45-1. Terms used in this chapter mean:
(1) "Agricultural purposes," the producing, raising, growing, or harvesting of food or fiber upon agricultural land, including dairy products, livestock, and crops. The services of custom harvesters, chemical applicators, fertilizer spreaders, hay grinders, and cultivators are considered agricultural purposes. The harvesting of timber on land within the state is considered an agricultural purpose;
(2) "Business," any activity engaged in by any person or caused to be engaged in by such person with the object of gain, benefit, or advantage, either direct or indirect;
(3) "Candy," any preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. The term, candy, does not include any preparation containing flour and does not require refrigeration;
(4) "Delivery charges," charges by the retailer for preparation and delivery to a location designated by the purchaser of tangible personal property, any product transferred electronically, or services including transportation, shipping, postage, handling, crating, and packing. The term does not include postage for direct mail;
(5) "Feminine hygiene products," tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property designed for feminine hygiene in connection with the human menstrual cycle, but does not include soaps and cleaning solutions, shampoos, toothpastes, mouthwash, antiperspirants, and suntan lotions and screens;
(5)(6) "Food"
and "food ingredient," any substance, whether in liquid,
concentrated, solid, frozen, dried, or dehydrated form, that is sold
for ingestion or chewing by humans and is consumed for its taste or
nutritional value. The term, food, does not include alcoholic
beverages, tobacco, or prepared food;
(6)(7) Repealed
by SL 2007, ch 56, 1.
(7)(8) "Person,"
any individual, firm, copartnership, joint adventure, association,
limited liability company, corporation, municipal corporation,
estate, trust, business trust, receiver, the State of South Dakota
and its political subdivisions, or any group or combination acting as
a unit;
(8)(9) "Prepared
food," any food sold in a heated state or heated by the seller;
two or more food ingredients mixed or combined by the seller for sale
as a single item; or food sold with eating utensils provided by the
seller, including plates, knives, forks, spoons, glasses, cups,
napkins, or straws. A plate does not include a container or packaging
used to transport the food.
Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part 401.11 of its Food Code as of January 1, 2003, so as to prevent food borne illnesses;
(8A)(10) "Product
transferred electronically," any product obtained by the
purchaser by means other than tangible storage media. A product
transferred electronically does not include any intangible such as a
patent, stock, bond, goodwill, trademark, franchise, or copyright.
(9)(11) "Relief
agency," the state, and county, municipality or district
thereof, or any agency engaged in actual relief work;
(10)(12) "Retail
sale" or "sale at retail," any sale, lease, or rental
for any purpose other than for resale, sublease, or subrent;
(11)(13) "Retailer,"
any person engaged in the business of selling tangible goods, wares,
or merchandise at retail, or the furnishing of gas, electricity,
water, and communication service, and tickets or admissions to places
of amusement and athletic events as provided in this chapter, and the
sale at retail of products transferred electronically. The term also
includes any person subject to the tax imposed by 10-45-4
and 10-45-5.
The isolated or occasional sale of tangible personal property or any
product transferred electronically at retail by a person who does not
hold himself or herself out as engaging in the business of selling
such tangible personal property or products transferred
electronically at retail does not constitute such person a retailer;
(12)(14) "Sale,"
any transfer, exchange, or barter, conditional or otherwise, in any
manner or by any means whatsoever, for a consideration;
(13)(15) "Soft
drinks," any nonalcoholic beverages that contain natural or
artificial sweeteners. The term, soft drinks, does not include any
beverage that contains milk or milk products, soy, rice of similar
milk substitutes, or greater than fifty percent of vegetable or fruit
juice by volume;
(14)(16) "Tangible
personal property," personal property that can be seen, weighed,
measured, felt, or touched, or that is in any other manner
perceptible to the senses. The term includes electricity, water, gas,
steam, and prewritten computer software.
Section 2. That chapter 10-45 be amended with a NEW SECTION:
There are exempted from this chapter and from the tax imposed by it, gross receipts from the sale of feminine hygiene products.