Tax Tip Tuesday: Farm Machinery

Tax Tip Tuesday: Farm Machinery

South Dakota Retailers Association

Did you know….While South Dakota imposes sales or use tax on most products and services sold, purchases of farm machinery, attachment units or irrigation equipment are subject to a 4.5% state ag excise tax instead of the sales tax when those items are used exclusively for agricultural purposes.

Those purchases are not subject to municipal tax.

Read more in this handy South Dakota Department of Revenue Publication: http://dor.sd.gov/Taxes/Business_Taxes/Publications/PDFs/Tax%20Facts/Ag%20Equipment.pdf or call the Department at 800.829.9188.

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