An Act to provide exemption of certain taxes for certain nursing home providers and community service providers.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 10-45-14 be AMENDED:
10-45-14. Exemption for educational institutions and hospitals--Exceptions--Limitations--Requirement.
There are specifically exempted
from the provisions of this chapter and from the computation of the
amount of tax imposed by it, the gross receipts from sales of
tangible personal property, any product transferred electronically,
and services to and for use by religious educational institutions,
private educational institutions currently recognized as exempt under
section 501(c)(3) of the Internal Revenue Code as in effect on
January 1, 2011,
and
nonprofit, charitable hospitals,
nonprofit long-term care facilities, long-term care facilities
operated by a nonprofit, charitable hospital, and nonprofit community
service providers
when purchases are made by authorized officials, payment made from
the institution funds and title to the property retained in the name
of such institution. For the purposes of this section, a private
educational institution shall be defined as an institution currently
recognized as exempt under section 501(c)(3) of the Internal Revenue
Code as in effect on January 1, 2011, maintaining a campus physically
located within this state; and accredited by the South Dakota
Department of Education or the North Central Association of Colleges
and Schools. For the purposes of this section, a religious
educational institution shall be defined as an institution currently
recognized as exempt under section 501(c)(3) of the Internal Revenue
Code as in effect on January 1, 2011, that maintains a campus
physically located within this state.
This exemption does not extend to sales to or purchases of tangible personal property or any product transferred electronically for the personal use of officials, members or employees of such institutions or to sales to or purchases of tangible personal property or any product transferred electronically used in the operation of a taxable retail business.
The exemption provided in this section does not, in any manner, relieve the institution from the payment of the additional and further license fee imposed on the registration of motor vehicles.
Each institution claiming this exemption shall prepare and maintain a list of all purchases on which the exemption was claimed, fully itemized, showing name and address of vendors, description of property purchased, date or dates of purchase, purchase price, and brief explanation of use or intended use.
Section 2. That 10-45-47.1 be AMENDED:
10-45-47.1. Promulgation of rules.
The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning:
(1) Licensing, including bonding and filing license applications;
(2) The filing of returns and payment of the tax;
(3) Determining the application of the tax and exemptions;
(4) Taxpayer record-keeping
requirements;
and
(5) Determining auditing methods; and
(6) The defining of the entities that qualify as a nonprofit long-term care facility or a nonprofit community service provider for an exemption under 10-45-14.