Rule 64:06:02:07 Barber and beauty shops.
64:06:02:07. Barber and beauty shops. Taxable gross
receipts of barber and beauty shops include items of merchandise sold to
customers and the service performed for a customer.
Each shop must have one sales tax
license, and each beautician or barber in a shop need not apply for a sales tax
license, unless the beautician or barber is an independent contractor under the
criteria set forth in � 64:06:02:07.01. At the end of each reporting
period a sales tax return will be mailed by the department and only one sales
tax return must be filed for each shop.
Barber and beauty shops are the
consumers of supplies and equipment which are consumed or used by them in
rendering their services. If the sales tax on such items is not paid to a South
Dakota licensed supplier when purchased, then the cost of such items must be
reported as a use tax item on the sales tax return. Such items include
clippers, shampoos, rinses, and other items consumed on the premises by the
barber or beauty shop. Items sold to customers for their use off the premises
may be purchased from suppliers exempt from sales tax because they are
purchases for resale.
SL 1975, ch 16, � 1; 11 SDR
1, effective July 19, 1984; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 16 SDR
76, effective November 1, 1989; 21 SDR 219, effective
July 1, 1995.
Authority:SDCL 10-45-47.1, 10-46-35.1.
Implemented:SDCL 10-45-4.1, 10-45-5, 10-45-25, 10-46-2.
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