On March 28, 2025, South Dakota Governor Larry Rhoden signed legislation that will suspend South Dakota’s tax collection allowance credit for filing returns and remitting taxes electronically. Effective from July 1, 2025, until June 30, 2028, the state’s tax allowance credit for filing returns and remitting tax electronically is suspended.
Some states provide taxpayers with a credit or “vendor’s discount” to incentivize timely tax filing or filing taxes electronically. Effective July 1, 2025, until June 30, 2028, South Dakota taxpayers who file electronically will no longer receive the tax allowance credit. (H.B. 1037, Laws 2025, effective July 1, 2025)