Frequently Asked Questions

How do I pay use tax?

Licensed businesses report use tax liability on line 2 of their sales tax return or line 6 of their contractors' excise tax return. Additional city use tax due should be included with city sales taxable receipts.

Individuals who wish to file a one-time use tax payment should complete the Use Tax Form and mail it with the payment of tax due to the nearest revenue office listed on the form. Click here for the use tax form (PDF).



I am starting a new business. What do I need to do?

Information regarding licenses and permits can be found by clicking here.



Do I need to be licensed with the Department of Revenue?

There is no threshold to reach before a license is needed; if you are operating a taxable business, a license is needed.

If you are conducting business in South Dakota you need a license even if you do not have a physical location.

If you have nexus then all your sales in South Dakota are taxable (including online and catalog sales) and you must be licensed with the Department of Revenue.

Nexus is created through use of *sales representatives, service representatives, delivery trucks, contracts for realty improvements.

*This list is not all inclusive. If you would like a determination regarding nexus please contact the department at (800) 829-9188.



I'm a vendor at a special event. Do I need to be licensed?

Sturgis Rally vendors must register here. You do not need a permanent sales tax license if this is the only event you are selling at in South Dakota.

If you are selling at three or less events per year you do not need to obtain a permanent sales tax license. The organizer of the event should provide you with a Special Event Tax Return, which will be returned to the local revenue office listed on the form. Please call the local revenue office in which the event is held if you do not receive a Special Event Sales Tax Return.

Vendors that continuously attend events in South Dakota (more than 3 per year) or make sales outside of events should apply for a sales tax license.

Farmer's market vendors should complete a Special Event Sales Tax return at the end of the season. The event organizer should provide you with this form. Tourism tax is NOT due on receipts received from farmer's market sales unless the farmer's market is located on the site of a visitor attraction (i.e. Falls Park in Sioux Falls). Call (800) 829-9188 (800) 829-9188if you are unsure if a venue is a visitor attraction.



What is a Federal ID (FEIN) number?

Information regarding Federal Employer Identification Numbers can be found by visiting www.irs.gov.



I have no sales to report. Should I file a business tax return?

Yes. All returns due on your license must be filed by the due date regardless of the tax liability. If a return is filed late, even if there is no tax due, it may be subject to a $10 minimum penalty.



I am late on filling and/or paying my taxes. What do I do now?

Past due returns and payments can be made online through EPath. This system will automatically calculate interest and penalty for you.

If you do not have an online filing account through EPath you can contact the department at (800) 829-9188 (800) 829-9188 for the return forms and assitance with calculating interest and penalty.



How can I amend a return that was filed with a mistake?

Amended returns can be processed online through EPath

If you do not have an online filing account through EPath you can contact the department at (800) 829-9188 (800) 829-9188 for the necessary forms.



What is the definition of Gross Receipts?

Information regarding Gross Receipts can be found by clicking here.



What is the municipal gross receipts (bed, board, and booze) tax?

Cities can impose a general sales tax rate of up to 2%. This is in addition to the State's 4% sales tax rate. Cities may also impose an additional 1%, over and above their general rate, for any or all of the following:

  • Lodging
  • Alcohol
  • Eating Establishments
  • Admissions

Additional information on this tax can be found on page 9 of the Municipal Tax Guide.



How is tax reported for sales in Special Jurisdictions (Indian Land)?

All tax collected in a Special Jurisdiction is reported on the state tax return using the code assigned to that Special Jurisdiction. The tax remitted is then distributed between the State and Tribal Governments based on the tax collection agreements.

Some cities located in Special Jurisdictions impose municipal sales and use taxes that are reported in addition to the Special Jurisdiction tax. For a list of these cities, please refer to our Tribal publication.



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