South Dakota Senate Bill 43 Sets New Compliance Timeline for Remote Sellers and Marketplace Providers

South Dakota’s Senate Bill 43, signed into law on February 18, 2025, sets a clear timeline for when remote sellers and marketplace providers must register and begin collecting sales tax. Under the law, businesses that meet South Dakota’s tax thresholds must begin registering and collecting sales tax on the first day of the first full month that starts at least 30 days after they qualify by crossing the threshold.

Here’s an example timeline:

  • March 15, 2025: A business meets the sales tax thresholds.
  • April 15, 2025: The business has at least 30 days to prepare.
  • May 1, 2025: The business must register and begin collecting sales tax.

This delayed start gives businesses time to prepare for compliance. Tax professionals should be aware of this timeline to avoid premature registration and ensure timely tax collection.

For more background on South Dakota’s economic nexus legislation, click here. (S.B. 43, South Dakota Legislature, Laws 2025)

Posted on March 13, 2025