SD Department of Revenue offers additional guidance on remote seller law

The Nov. 1 deadline is a result of Senate Bill 1, which was signed into law at the conclusion of last week’s special legislative session. South Dakota’s remote seller law applies to businesses without a physical presence in South Dakota that meet one or both of the following criteria in the previous or current calendar year:

·         The business’s gross revenue from sales into South Dakota exceeded $100,000.

·         The business made sales for delivery into South Dakota in 200 or more separate transactions.

“South Dakota has been at the forefront in achieving tax fairness throughout the nation, and we look forward to the next step in this process,” said Department of Revenue Secretary Andy Gerlach. “The Nov. 1 start date not only allows remote sellers ample time to obtain licensing, but it also provides fairness to our brick and mortar businesses during the holiday season.”

The Department of Revenue encourages any business that wishes to obtain licensing prior to the Nov. 1 deadline to do so. The Department of Revenue offers a free, online sales tax license application, which is available at http://sd.gov/taxapp.

Remote sellers who do business in multiple states may also register through the Streamlined Sales Tax Project. The Streamlined Sales Tax Project offers free licensing through its 23-member states and is available at www.streamlinedsalestax.org.

“The Department of Revenue will continue to be a resource to businesses of all sizes during this process,” Gerlach said. “We also encourage our in-state businesses who sell products online to contact the department if they have questions about how remote seller laws in other states apply to them.”

Additional information and frequently asked questions are available at the department’s dedicated remote seller webpage, http://sd.gov/remoteseller. The department will also provide assistance through its website’s live chat feature or over the phone at 1-800-829-9188.