Gross receipts from garbage or solid waste disposal services are subject to the state’s 4% sales tax, but statutorily exempted from municipal sales taxes. Garbage disposal services include collection of recyclables and hazardous wastes, and tipping fees or landfill charges are included in the gross receipts calculation. In addition, the tax applies regardless of whether the dumping site is inside or outside the state if collection occurs in South Dakota. All consumable tangible items used to perform disposal services are also subject to the tax. However, solid waste services performed for exempt entities, such as schools, state and federal agencies, tribal entities, or non-profit hospitals, are not subject to the tax. (Tax Facts #175, South Dakota Department of Revenue & Regulation, July 2004)