South Dakota Code § 32-5-128

Exemption from excise tax for motor vehicles leased to tax exempt entities
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Any motor vehicle purchased by a lessor that is to be leased for more than twenty
-
eight days by an entity exempted in §§
32-5-42
and
32-5-42.1
is exempt from the excise tax levied by §§
32-5B-1
and
32-5B-1.1
. If the lease is terminated and the motor vehicle is subsequently leased to a nonexempt entity, tax shall be assessed unless otherwise exempted.

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