On February 13, 2023, South Dakota Governor Kristi Noem signed Senate Bill 30 into law, which eliminates the 200-transaction threshold from South Dakota’s economic nexus threshold, effective July 1, 2023. Prior to the bill’s enactment, South Dakota’s economic nexus threshold was gross revenue of $100,000 or 200 or more separate transactions in the previous or current calendar year. The economic nexus threshold will now be gross revenue of $100,000 in the previous or current calendar year, effective July 1, 2023. This is potentially good news for smaller remote sellers making sales into South Dakota whose sales don’t exceed $100,000 in a calendar year but whose transaction count exceeds 200.
This follows similar developments in other states that have removed the transaction count from their economic nexus threshold, such as California, Colorado, Massachusetts and more. We may continue to see more states dropping the transaction count from their economic nexus threshold. For our previous tips on South Dakota’s economic nexus threshold, click here and here.
(Senate Bill 30, Laws 2023)