1006. SUBCONTRACTORS.

For the purpose of this Chapter, a subcontractor is a person contracting with a prime contractor to perform all or part of a realty improvement the prime contractor has contracted to perform. A prime contractor subject to the tax imposed by Section 1003 shall issue a certificate to a subcontractor showing the prime contractor’s valid contractor’s excise tax license number. The form shall be prescribed by the Tax Commission. Any subcontractor who fails to obtain a certificate and a record of project designations is considered a prime contractor and is subject to tax imposed by Section 1003 unless it is subject to the tax imposed by Section 1002. Any person accepting the certificate would have been liable for it if the certificate had been issued. The tax is due at the time the person accepting the certificate would have been required to pay the tax. In addition to any tax and interest due, persons providing certificates, who are not prime contractors, are liable for a civil penalty of ten percent of the tax. The United States, the Rosebud Sioux Tribe, the State of South Dakota, or any other state, or any public or municipal corporation within the Rosebud Reservation may not issue a certification.