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Excise Tax

It seems that about the time I think I have this tax figured out a new scenario comes along and I am researching it once more.  I finally had it explained to me in a way that made sense.  This is a Contractors tax.  If a contractor performs work – it is going to be excise taxable.  There are no exceptions as to who the customer is, even if it is a government entity. If the work is performed in South Dakota it is excise taxable.  The only time you would not pay excise tax is if you are a sub-contractor and the prime contractor is paying the tax. (Be sure and have the prime contractor complete SD EForm 1346 – Prime Contractors’ Exemption Certificate). Qualified Utility Projects do not fall under this classification.  Prime contractors cannot issue exemption certificates for these jobs so the sub-contractor would be responsible for reporting and paying their own excise tax.  Just remember, someone always has to pay the excise tax.

Jeanette Stearns

Jeanette Stearns

Jeanette started at KTLLP in October 2015. She is an Associate in the Accounting Services Department of the Spearfish Office and a QuickBooks ProAdvisor. She has over 24 years of experience.
Jeanette Stearns

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