|Posted on September 27, 2011 at 12:15 AM|
THIS INFORMATION HAS BEEN COPIED FROM AN EMAIL SENT BY SOUTH DAKOTA
Pilot Car Services
Pilot car services can be taxable services in South Dakota. The purchase of a pilot car to notify oncoming traffic of over-width loads, slow moving vehicles, or other traffic hazards are subject to sales tax. The service remains taxable regardless of where the service ends if the origin of the trip is in South Dakota. Pilot car services which originate in another state but pass through or end in South Dakota are not subject to South Dakota sales tax.
Example: A pilot car is hired to lead an over-sized load from Sioux Falls, South Dakota, to Denver, Colorado. South Dakota state sales tax plus Sioux Falls municipal sales tax apply because the origin of the trip is in South Dakota.
Pilot car services are often purchased by highway contractors to lead motorists through construction zones. These services are exempt when the prime contractor of the project provides a Prime Contractors’ Exemption Certificate to the service provider. Without the exemption certificate the services are subject to the contractors’ excise tax.
For more information about the tax-ability of pilot car services you can call toll free 800-829-9188
Our website to apply for a sales tax license is www.state.sd.us/taxapp.
Toll free: 1-800-829-9188