South Dakota promotional allowances exempt from tax.

In South Dakota, a store that sells gasoline, grocery items, and cigarettes received promotional allowances from manufacturers, distributors, and wholesalers. These allowances were not subject to tax as long as they were received in conjunction with a contract that required the store to display the product or signage of the manufacturer, distributor, or wholesaler is a certain place and specified manner. (Declaratory Ruling Rev 04-04, Department of Revenue and Regulation, February 4, 2004)

Posted on October 22, 2004