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South Dakota Sales Tax

On this page you will find handy sales and use tax information about South Dakota.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to South Dakota that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

4.200% The state has reduced rates for sales of certain types of items. Sales and deliveries to certain Indian reservations are subject to the Tribal sales, use and excise taxes in lieu of the state sales, use and excise tax. City sales tax may still apply.
Range of Local Rates

0% – 10% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
AFFILIATE NEXUS

7/1/2011
REPORTING REQUIREMENTS

7/1/2011
ECONOMIC NEXUS

11/1/2018 – injunction lifted – see state notice and state webpage
MARKETPLACE NEXUS

3/1/2019
Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

258 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period. EFT remitters: 23rd of the month following the reporting period.
Exemption Information
RESALE CERTIFICATE

South Dakota Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: advertising services, state and local fair admission, prescription drugs, medical devices, certain agricultural products

 

Entity types of exemptions: Indian tribes, United States government agencies, South Dakota governments including state, county and municipal, municipal or volunteer fire or ambulance departments, public schools, including K-12, universities and technical institutes, non-profit hospitals, relief agencies, South Dakota religious and private schools

 

South Dakota Exemption Certificate Forms
State Links
State Tax Web Page

South Dakota Department of Revenue
Rate Look-Up Page

South Dakota Sales Tax Rate Look-Up
Registration Link

Register for South Dakota Sales Tax
History & Fun Facts
HISTORY

The South Dakota retail sales tax was enacted in 1935 and extended to services and professions in 1965. The South Dakota use tax was enacted in 1939.

 

South Dakota amended it sales and use tax laws to conform with the Streamlined Sales and Use Tax Agreement in 2003.
FUN FACTS
  • South Dakota, like its northern sister state, has an impressive groundbreaking United States Supreme Court case which changed the entire landscape of sales tax collection in the United States – South Dakota v. Wayfair, Inc. Maybe you’ve heard of it?

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

South Dakota Enacts State Sales and Use Tax Rate Increase

South Dakota increased its sales and use tax rate, effective 06/01/16. More…

South Dakota Enacts Economic Nexus Legislation

South Dakota enacted economic nexus legislation, effective 05/01/16. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

South Dakota Collection Allowance Available January 1, 2014

Effective January 1, 2014, a collection allowance of 1.5% of the tax due is available for South Dakota retailers who timely file and pay tax returns electronically through the Department of Revenue. The allowance is not to exceed $70 for…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

South Dakota Enacts Bills for Affiliate Nexus and Remote-Seller Reporting Requirements

The South Dakota governor signed an “affiliate nexus” bill into legislation as well as legislation regarding remote-seller reporting requirements, effective July 1, 2011.

South Dakota Amends Provisions Governing Imposition of Tax on Telecommunications Services and Ancillary Services

Effective July 1, 2009, South Dakota amends taxation provisions to specifically apply the state’s tax on gross receipts to all intrastate, interstate, and international telecommunications services that originate and terminate in South Dakota, or that originate or terminate in the…

Rental of Storage Units Not Taxable in South Dakota

The South Dakota Supreme Court found the owners of a self-storage facility not liable for sales tax. The South Dakota Department of Revenue argued that the taxpayer’s business qualified as warehousing and storage, a taxable service under statutory tax law.…

South Dakota Products Transferred Electronically Subject to Tax

Effective July 1, 2008, South Dakota revised provisions apply sales and use tax to all sales, leases, or rentals of any product transferred electronically if (1) the sale is to an end user, (2) the sale is to a person…

South Dakota Amends Time Period for Exemption Certificates

If a seller has not obtained an exemption certificate or all relevant data for exemption certificates for South Dakota sales and use tax, the seller may, within 120 days following a request for substantiation, either prove that the transaction was…

South Dakota Taxability of Blueprint Purchases by Architects for Resale

A South Dakota Department of Revenue and Regulation publication discusses the sales and use tax liability of an architect’s purchases of blueprints for resale to the owner of the project. There are no South Dakota provisions allowing a service provider…

South Dakota Introduces Resolution to Urge Congressional Support of SSUTA.

On February 11, 2005 the South Dakota Senate introduced Concurrent Resolution No. 5, which would urge Congress to sponsor and support the Streamlined Sales and Use Tax Agreement. The Senate’s argument for the Agreement is based upon revenue losses as…

South Dakota Governor Signs Bill Providing for Sales and Use Tax Refunds to Certain Fabricators.

The South Dakota Governor has signed H.B. 1142, which provides for certain fabricators to apply for a sales and use tax refund. The bill, which becomes effective July 1, 2005, states that a contractor or subcontractor licensed pursuant to Chapter…

South Dakota Creates Bid Calculator for Contractors and Discusses Tax Responsibilities of Specialty Builders.

Citing the significant increase in new home building in a recent edition of South Dakota Taxation News, the South Dakota Department of Revenue and Regulation discussed the addition of a bid calculator for contractors. The Department stated that since they…

South Dakota Amends Bad Debt Deduction for Sales and Use Tax Purposes.

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,…