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.