South Dakota Temporarily Lowers Sales Tax Rate

South Dakota is lowering its sales and use tax rate for four years under a bill signed into law by the governor. Governor Kristi Noem signed H.B. 1137; the legislation is stated as an act to reduce certain gross receipts tax rates and the use tax rate, and to repeal a conditional reduction of certain gross receipts tax rates. This house bill is reducing the rate from 4.5% to 4.2%. The reduced rate will be effective from July 1, 2023 – June 30, 2027.

Governor Kristi Noem advocates for permanent tax relief but acknowledges that this temporary legislation is better than none at all – as stated in a letter to Speaker of the House Hugh Bartels, R-Watertown.

(SD H.B. 1137, Effective July 1, 2023)

Posted on March 30, 2023