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A 2% contractor's excise tax is imposed on the gross receipts of all prime and subcontractors engaged in construction services or reality improvement projects. The work must be for the utility company and the prime contractor must receive payment directly from the utility company to be taxed under SDCL 10-46B.
General Contractor License Requirements in Sioux Falls, SDTake and passing the Construction Supervisor Examination.Secure an Excise Tax Number.Maintain a $20,000 Compliance Bond.Provide a Certificate of Liability Insurance with a minimum of $300,000.More items...
In South Dakota, there are no statewide licensing requirements for general contractors.
Traditional Goods or Services Goods that are subject to sales tax in South Dakota include physical property, like furniture, home appliances, and motor vehicles. The purchase of prescription medication and gasoline are tax-exempt. South Dakota is unique in the fact that almost all services are taxable.
An individual must be licensed before starting work in South Dakota. All contractors must be licensed regardless of the amount of the receipts they have or the amount of tax due.