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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

New threshold: July 1, 2023
MARKETPLACE NEXUS

3/1/2019

New threshold: July 1, 2023
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?

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,…

South Dakota House of Representatives passes Streamlined Sales Tax legislation.

The South Dakota House of Representatives has recently passed House Bills 1033 and 1044 for review by the South Dakota Senate. House Bill 1033 would enact an amnesty that would relieve a seller of liabilities associated with uncollected or unpaid…

South Dakota promotional allowances exempt from tax.

In South Dakota, a store that sells gasoline, grocery items, and cigarettes received promotional allowances from manufacturers, distributors, and wholesalers. These allowances were not subject to tax as long as they were received in conjunction with a contract that required…

South Dakota clarifies taxation of moving and storage services.

The South Dakota Department of Revenue and Regulation stated that moving services are exempt from sales tax as of July 1, 2004, and that packing, unpacking, loading, unloading, and storage are also exempt if performed as part of the transportation…

South Dakota explains application of taxes to mobile, manufactured, modular, and sectional homes

Effective July 1, 2004 used and new manufactured homes built to Housing and Urban Development (HUD) standards, and placed on a temporary foundation, must be titled and are subject to a 3% initial registration fee if the homes are to…

South Dakota use tax due on some purchases over the Internet.

Items or services purchased by South Dakota residents over the Internet may have use tax due. This use tax is typically due if the purchaser (1) didn’t pay sales tax when purchasing the items or (2) the sales tax paid…

Retailers providing goods or services to South Dakota must be registered to collect tax.

There is a law in South Dakota preventing public corporations from buying goods or services from retailers who meet the definition of a retailer or a retailer maintaining a place of business in the state if the retailer or any…

South Dakota allowed to use private collection agencies and attorneys.

The Governor of South Dakota signed into law H.B. 1042 allowing the state to use private collection agencies and attorneys to collect on delinquent accounts. This new practice will be effective July 1, 2004. The secretary of revenue will oversee…

South Dakota has outlined taxpayer requirements in relation to sales and use taxes for those planning to do business in the state.

The outline reads, “…Every person, partnership, corporation or other organization that sells, rents, or leases taxable items or performs taxable services in South Dakota must apply for a sales tax license. You must be licensed before making sales in South…

South Dakota bundled telecommunication services.

When a telecommunication transaction is a bundled together with taxable and nontaxable services, the nontaxable part will be subject to tax unless the provider can “reasonably identify the nontaxable portion from its books and records kept in the regular course…

South Dakota imposes 4% sales tax on interstate telecommunications.

Beginning May 1, 2003, interstate telecommunication services originating or terminating and billed to an address in South Dakota are subject to the 4% state sales tax. However, the tax will not be applicable to (1) any 800 number or 800…

South Dakota sign and advertising business exemptions.

In South Dakota, legislators have exempted tangible personal property used by sign and advertising businesses if the tangible personal property becomes an integral part of the final product and the product is installed somewhere outside of the state by the…

South Dakota retail restriction.

Public corporations in South Dakota are barred from purchasing goods or services from any retailer or affiliate of the retailer that does not remit South Dakota sales and use taxes. Specific exceptions may be allowed. (H.B. 1261, Laws 2003, effective…

South Dakota exemption certificates.

Effective July 1, 2002, resale certificates will replace exemption certificates used to avoid sales tax on a purchase. (H.B. 1001)

South Dakota revises rates.

Effective January 1, 2006, the sales and use tax rate on the sale, resale, or lease of farm machinery and irrigation equipment increases from 3% to 4%. (H.B. 1001)

South Dakota service exemptions repealed.

Effective July 1, 2002, exemptions provided for waste disposal, veterinarian, and ground and air transportation services are repealed. However, as of January 1, 2006, when tangible personal property and/or passengers are transported, this service may only be taxed if the…