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 each reporting period.The allowance applies to all taxes reported on the sales tax return form, including sales tax, use tax, tourism tax, municipal sales tax, telecommunications gross receipts tax, excise tax on farm machinery, amusement device tax, motor vehicle leasing tax, intermediate care facility tax, Sioux Falls lodging tax, and tax collection agreement taxes. It does not apply to contractors’ excise tax returns. The allowance is not available to licensed retailers who have outstanding tax returns or outstanding tax balances due or those who do not file and pay electronically.Any individual who has selected a certified service provider (CSP) as its agent is not entitled to the collection allowance credit if the CSP receives a monetary allowance as provided by the Streamlined Sales and Use Tax Agreement for performing the retailer’s sales and use tax functions in South Dakota. (Release, South Dakota Department of Revenue, November 6, 2013)

Posted on November 26, 2013