Items or services purchased by South Dakota residents over the Internet may have use tax due. This use tax is typically due if the purchaser (1) didn’t pay sales tax when purchasing the items or (2) the sales tax paid to another state was less then what should have been paid in South Dakota. Almost all services and merchandise sold in South Dakota are subject to the state sales and use tax. The state is working harder to let taxpayers know about the use tax simply because it loses out on large amounts of tax dollars when buyers go out of state via the Internet or through catalogs to make their purchases. (South Dakota Department of Revenue and Regulation, SD Tax Facts #316, Sales and Use Tax, January 1, 2004)