(A)   The purpose of this subchapter is to remove the obsolete sentences and comply with state law. Tax will not be applied to items specifically exempt under SDCL §§ 10-52-11 and 10-52-12. Items exempted from municipal tax include: farm machinery and irrigation equipment, parts or repairs from farm machinery, agricultural animal health products and medicine, passenger transportation service, collection and disposal of solid waste, veterinarian and animal specialty services and air transportation.
   (B)   In addition to gross receipts exempted by state law, and therefore from tax imposed hereunder, except for transportation as herein provided for, there are hereby specifically exempted from the provisions of this subchapter and from computation of the amount of tax imposed by it:
      (1)   Farm machinery and irrigation equipment used exclusively for agricultural purposes;
      (2)   Gross receipts from vending machines, including, but not limited to, pinball machines, photographs and all other mechanical devices for amusement; and
      (3)   Receipts from sales to a construction company or materials and supplies which are incorporated into and become part of projects outside of the town limits are exempt from municipal sales and use tax even if delivery is made to a truck of the construction company within the town.
(1992 Code, § 11-1-4) (Ord. 31, § 12-1.4, passed 10-1-1975; Am. Ord. 11-1-4, passed 9-21-2005)