ENTITLED, An Act to
restrict public corporations from making purchases from any retailer that
fails to collect and remit sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That chapter
5-18
be amended by adding thereto a NEW SECTION to read as
follows:
No public corporation may purchase any goods or services from any retailer that meets the
definition of a retailer or a retailer maintaining a place of business in the state, pursuant to
subdivisions 10-46-1(8) and (9), if the retailer or any affiliate of the retailer fails or refuses to collect
and remit the sales and use tax on any sale delivered by any means to a location within this state.
The Department of Revenue shall provide a list to public corporations of any retailer that fails to
collect and remit the sales and use tax. For the purposes of this section, the term, affiliate, is any
person who directly or indirectly owns or controls, is owned or controlled by, or is under common
ownership or control with, another person. No public corporation is liable for the breach of any
duty required of the public corporation by the provisions of this Act if the breach, error, act, or
omission is made in good faith. The provisions of this Act do not apply to any emergency purchase
made pursuant to
§
5-18-3.1, or to any purchase made pursuant to
§
5-18-18.1, 5-18-18.2, or 5-18-
9.4, or to any contract for the construction of a new building or the remodeling or addition to an
existing building or a contract for any other public improvement which involves the expenditure of
twenty-five thousand dollars or more made pursuant to
§
5-18-3.