2003-03 Imposing Municipal Sales, Service & Use Tax

Last Updated: Thursday, 17 December 2015


Ordinance 03-2003 

Imposing Municipal Sales, Service and Use Tax 

(Also Repeals Ordinance 04-91)


Section 1. Purpose:


The purpose of this Ordinance is to repeal Ordnances 192, 03-85, 08-87 and 05-89 and put into effect this tax Ordinance to bring the Municipality of Newell into compliance with recent changes made in the State Law.


Section 2. Effective Date and Enactment of Tax:


From and after the First of January, 2004, there is hereby imposed as a Municipal retail occupational sales and service tax upon the privilege of engaging in business a tax measured by two (2%) percent on the gross receipts of all persons engaged in business within the jurisdiction of the Municipality of Newell, who are subject to the South Dakota Retail Occupational Sales and Service Tax, SDCL 10-45 and acts amendatory thereto. Tax will not be applied to items specifically exempt under SDCL 10-52-2.5, 10-52-11 and 10-52-12. Items exempted from municipal tax include: Farm Machinery and Irrigation Equipment, parts or Repairs for Farm Machinery, Agricultural Animal Health Products and Medicine.


Transportation Service, Collection and Disposal of Solid Waste, Veterinarian and Animal Specialty Services and Air Transportation.


Section 3. Use Tax:


In additional there is hereby imposed an excise tax on the privilege of use, storage and consumption within the jurisdiction of the municipality of tangible personal property or services purchased from and after the first of January 2004, at the same rate as the municipal sales and services tax upon all transactions or use, storage and consumption which are subject to the South Dakota Use Tax Act, SDCL 10-46, and acts amendatory thereto.


Section 4. Collection:


Such tax is levied pursuant to authorization granted by SDCL 10-52 and acts amendatory thereto, and shall be collected by the south Dakota Department of Revenue and Regulation in accordance with the same rules and regulations applicable to the State Sales Tax and under such additional rules and regulations as the Secretary of Revenue and Regulations of the State of South Dakota shall lawfully prescribe.



Section 5. Interpretation:



It is declared to be the intention of this Ordinance and the taxes levied hereunder that the same shall be interpreted and construed in the same manner as all Sections of the South Dakota Retail Occupational Sales and Service Act, SDCL 10-45 and acts amendatory thereto and the South Dakota Use Tax, SDCL 10-46 and acts mandatory hereto, and that this shall be considered a similar tax except for the rate thereof to that tax.



Section 6. Penalty:



Any person failing or refusing to make reports or payments prescribed by this Ordinance and the Rules and Regulations relating to the ascertainment and collection of the tax herein levied shall be guilty of a misdemeanor and upon conviction shall be fined not more than two hundred ($200.00) dollars or imprisonment in the county jail for thirty (30) days or both such fine and imprisonment. In addition, all such collection remedies authorized by SDCL


10-45, and acts amendatory thereto, and SDCL 10-46, and acts amendatory thereto authorized for the collection of these excise taxes by the Department of Revenue and Regulation.



Section 7. Separability:



If any provision of this Ordinance is declared unconstitutional or the application  thereof to any person or circumstances held invalid the constitutionality of the remainder of the Ordinance and applicability thereof to other persons or circumstances shall not be affected hereby.