Telecommunications gross receipts tax effective July 1 Beginning July 1, South Dakota will impose an additional tax on certain wireless, cellular, and mobile radio services.
The 4 percent tax will apply to the gross receipts on the retail sale of intrastate and interstate telecommunications services if the customer's place of primary use is located in South Dakota; the tax applies regardless of where the service actually originates or terminates.
According the S.D. Department of Revenue and Regulation, the tax will be imposed on wireless personal communications services, wireless local loop services, enhanced special mobile radio services, fixed wireless services, and cellular services that provide two-way communication.
The tax will not apply to specialized mobile radio service, non-network two-way radio telephone service, private mobile radio service, one-way cable television service, or two-way cable system subscriber interaction that may be required for the selection of video or other programming services.
For the purposes of this gross receipts tax, a sale at retail does not include special access or toll-free incoming calls or the sale of any telecommunications service from one telecommunications company to another telecommunications company if the service is resold or becomes a component part of the sale by the second company.
For more information on this and other South Dakota taxes, call the Department of Revenue and Regulations toll-free phone center at 1-800-TAX(829)-9188.