​Quick hit: South Dakota state sales tax dropping starting July 1

​Quick hit: South Dakota state sales tax dropping starting July 1

05/25/2023 Tags: Announcements, In the News

If your business collects South Dakota state sales tax, make sure your accounting software is up to date on July 1.

That’s when the state’s sales tax rate decreases from 4.5% to 4.2%.

The state tax rates affected by the changes are:

  • Sales and use tax
  • Excise tax on farm machinery and farm attachment units
  • Amusement device tax
  • Motor vehicle gross receipts tax

The drop is a result of House Bill 1137, which includes a sunset clause that repeals the reduction on June 30, 2027.

Speaking of sales tax, there’s also been a change for remote seller registration criteria that starts July 1.

Only remote sellers with more than $100,000 in gross sales in South Dakota in the previous or current calendar year have to be licensed and remit South Dakota sales tax. That’s a change from the previous rule, which included a 200-or-more-transactions threshold.

Questions about sales tax or accounting software updates? Let us know.

Other Useful News



At Casey Peterson, LTD, we understand not everyone loves the complexities of accounting like we do. That's what sets us apart from the rest. Our CPAs, accountants, and financial advisors truly love numbers, solving problems, and creating business and financial strategies for our clients.

We’re looking for clients who believe in good customer service — clients who want CPAs, accountants, and financial advisors who are big-picture thinkers and ethical problem solvers. We’re looking for relationships, not transactions.

If you want the same, we should talk.

Contact Us