Effective July 1, 2005, the State of South Dakota has amended Section 10-45-30 of its tax law to read that a bad debt means the same as the term is defined in the Internal Revenue Code. According to the bill, for sales tax purposes, when computing the amount of tax due, a seller may deduct bad debts from the total amount upon which the tax is calculated for any return. Furthermore, a taxpayer who is not required to file Federal income tax returns may also take a bad debt deduction. The bill states that a seller may allocate its bad debts among states if the books and records of the seller claiming the bad debt can support such allocation. (State of South Dakota, H.B. 1037, effective July 1, 2005)