South Dakota Code § 10-45-20.2

Exemption of payments between members of controlled group--Reimbursement for third
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party services to group.
Payments made by one member of a controlled group to another member of a controlled group which represent an allocation, reimbursement or charge for third
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party services rendered to the controlled group and upon which a sales or use tax has been paid may not be considered as gross receipts under this chapter.

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