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Sales & Use Tax Laws & Regulations

Retail Sales and Service Tax

Laws associated with the 4.5% state sales tax can be found in SDCL 10-45.

 

Administrative Rules for Sales Tax in Chapter 64:06

 

Use Tax

If you purchase products or services from a vendor who is not licensed to collect South Dakota sales tax, you may owe use tax. For a complete list of laws please see SDCL 10-46.

 

Administrative Rules for Use Tax in Chapter 64:09

 

Filing Requirements

Business who obtain a license with the Department will be notified how frequently they are required to file returns. Returns may be filed either through our online Filing & Tax Payment portal, or on a paper return that is pre-printed return which is supplied by the Department. Regardless of the filing frequency the return is due by the 20th of the following month. For example, a return for the January reporting period is due by February 20th. For paper filers, the payment is due at the same time as the return. Returns filed past the due date are subject to penalty and interest charges. For electronic filers, once the returns have been completed you will be asked to set up your payment option and date. Electronic payments are due on or before the 25th of the month. If a due date falls on a Saturday, Sunday, or legal holiday, the next business day is the due date.

 

Collection Allowance

Businesses who file and pay their sales or use tax returns electronically are eligible to receive a collection allowance of 1.5% of the tax due, not to exceed $70, each reporting period. No allowance is given on contractor’s excise tax returns or if you have an outstanding tax obligation.

 

Payment Options

Online Payments

Business who pay their tax obligations through our online Filing & Tax Payment portal or Make A Payment may pay using ACH Debit, or Credit Card (Visa, Mastercard & Discover)

ACH Debit

This option allows business owners to provide bank information and our system sweeps the account on the designated date.

ACH Credit

This payment option requires business owners to contact their bank to have a payment sent electronically to the Department.

 

Payment by Check

Payments are permitted via check. Please send payments to the Department of Revenue; Anderson Building; Mail Stop 5055; Pierre, SD 57501.

 

Over the Phone

Call 1 (800) 829-9188 to make a payment by ACH Debit or Credit Card.

 

Cash

If you are paying with cash we recommend that you visit one of our offices and meet with an agent. We do not recommend that you send cash through the mail.

 

Late Filing Fees

Payments received are applied first to the oldest tax obligation, once all of the tax is paid, the payments are applied to the oldest interest charge until all interest charges are satisfied, then the oldest penalty charge until the balance is paid in full.

 

Penalty Charges

A penalty of 10% (.10) of the tax liability is assessed if a return is not received within 30 days following the month the return is due. The minimum penalty is $10 and is assessed even if no tax is due.

 

Interest Charges

An interest charge of 1% (.01) will be assessed each month on any past due tax until the tax is paid in full. (A minimum of $5.00 interest is due the first month).

 

Filed Return Corrections

Businesses are allowed to file amended returns if the correction is made within 36 months of the original due date. If you have an account in our online Filing & Tax Payment portal, you may amend your returns one time through the portal. If you file by paper or are not able to amend the return through the online Filing & Tax Payment portal, please call 1 (800) 829-9188 to request an amended return form.