TITLE 11  --  TAXATION

 Chapter 11.01 - Municipal Sales Tax

CHAPTER 11.01 - MUNICIPAL SALES TAX 

11.01.01 Purpose.  The purpose of this Chapter is to provide additional needed revenue for the municipality by imposing a municipal retail sales and use tax pursuant to SDCL 10-52, and acts amendatory thereto. 

11.01.02 Effective Date and Enactment of Tax.  From and after July 1, 1997, there is hereby imposed as a municipal retail occupational sales and service tax upon the privilege of engaging in business a tax measured by Two Percent (2%) on the gross receipts of all persons engaged in business within the jurisdiction of the municipality who are subject to the South Dakota Retail Occupational Sales and Service Tax, SDCL 10-45 and acts amendatory thereto.  Tax will not be applied to items specifically exempt under SDCL 10-52-2.6.  Items exempt from city tax under SDCL 10-52-2.6 include:  farm machinery and irrigation equipment, parts and repairs for farm machinery, agricultural animal health products and medicines, and intrastate trucking and garbage hauling (Industries 4212 and 4214 of the Standard Industrial Classification Manual). 

11.01.03 Special Tax Rate.  Notwithstanding the rate of tax established in Section 2, the rate of tax upon sales of food as defined by the Food Stamp Act of 1977 as amended through January 1, 1983, is One Percent (1%). 

11.01.04 Exemption.  There are hereby exempt from the tax imposed by this ordinance gross receipts from construction materials delivered to a truck of a construction company for use outside municipal limits. 

11.01.05 Use Tax.  In addition there is hereby imposed an excise tax on the privilege of use, storage and consumption within the jurisdiction of the municipality tangible personal property or services purchased from and after July 1, 1997, at the same rate as the municipal sales and service tax upon all transactions or use, storage and consumption which are subject to the South Dakota Use Tax Act, SDCL 10-46, and acts amendatory thereto. 

11.0106  Collection.  Such tax is levied pursuant to SDCL 10-52 and acts amendatory thereto, and shall be collected by the South Dakota Department of Revenue in accordance with rules and regulations applicable to the State Sales Tax and under such additional rules and regulations as the Secretary of Revenue of the State shall lawfully prescribe. 

11.01.07 Interpretation.  It is the intention of this Chapter and the taxes levied hereunder that the same shall be interpreted and construed in the same manner as all sections of the South Dakota Retail Occupational Sales and Service Act, SDCL 10-45 and acts amendatory thereto and the South Dakota Use Tax, SDCL 10-46 and acts amendatory thereto, and that this shall be considered a similar tax except for the rate thereof to that tax. 

11.01.08 Use of Revenue.  Any revenue received under Section 2 of this ordinance in excess of the amount received if the rate of tax is One Percent (1%) may be used only for capital improvement, land acquisition, the funding of public ambulances and medical emergency response vehicles, public hospitals or nonprofit hospitals with fifty or fewer licensed beds, the transfer to the special 911 fund authorized by 34-45-12, the purchase of fire fighting vehicles and equipment, and debt retirement.  These expenditures may be financed through a sale-leaseback agreement. 

11.0109 Penalty.  Any person failing or refusing to make reports on payments prescribed by this Chapter and the rules and regulations relating to the ascertainment and collection of the tax herein levied shall be guilty of a misdemeanor and upon conviction shall be fined not more than $200 or imprisoned not more than thirty (30) days or both such fine and imprisonment.  In addition, all such collection remedies authorized by SDCL 10-45, and acts amendatory thereto, and SDCL 10-46, and acts amendatory thereto are hereby authorized for the collection of these excise taxes by the Department of Revenue.