As of Nov.1, 2018, South Dakota required remote sellers who meet certain thresholds to obtain licensing and remit applicable taxes, so the state Department of Revenue is reminding consumers to make sure their online purchases include state and municipal sales taxes.
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.
If sales tax is not charged, South Dakotans owe use tax. Use tax is also due if the sales tax paid to another state was lower than what would have been paid in South Dakota—in this case the difference in the two amounts is how much use tax is owed.
The Department of Revenue offers an online option for South Dakotans to file and pay use tax with a credit card or ACH debit transaction. This feature requires no account registration and can be accessed by visiting http://dor.sd.gov then clicking the online use tax payment button under e-services.
If consumers make a purchase from a remote seller and feel they are not charged the correct amount of sales tax, please contact the Department of Revenue by email at bustax@state.sd.us or toll free at 1-800-829-9188. When contacting the department, provide business specifics such as its website.
For more information on South Dakota’s remote seller law, visit http://sd.gov/remoteseller.
