In addition to gross receipts exempted by state law and therefore from tax imposed hereunder, there are specifically exempted from the provisions of this subchapter and from computation of the amount of tax imposed by it the following:
   (A)   Farm machinery and irrigation equipment used exclusively for agricultural purposes;
   (B)   Gross receipts from vending machines, including but not limited to pinball machines, phonographs and all other mechanical devices for amusement;
   (C)   Sales of tangible personal property and taxable services to purchasers residing or doing business outside the city provided that delivery is made to the purchaser outside the city by common carrier or by the conveyance of the seller or by the United States mail, and provided that the articles so purchased and delivered are used outside the city. Receipts from sales to a construction company of materials and supplies which are incorporated into and become part of projects outside the city limits are exempt from Municipal Sales and Use Tax, even if delivery is made to a truck of the construction company within the city, and mining companies using materials in their own operations outside the municipality shall be exempt from Municipal Sales and Use Tax on those materials; and
   (D)   One percent of the tax shall not be applicable to parts or repairs on machinery or equipment, which are clearly identifiable as used primarily for agricultural purposes as tax pursuant to SDCL § 10-46E if the part replaces a farm machinery part assigned a specific or generic part number by the manufacturer of the farm machinery, farm machinery or equipment tax pursuant to SDCL § 10-46E, and agricultural animal health products and medicines and gross receipts from selling food, as defined by the Food Stamp Act of 1977 (Pub. L. No. 95-113), codified at 7 U.S.C. § 2012(g), as amended through January 1, 1983, and rules promulgated pursuant thereto.
(Prior Code, § 20-103)