South Dakota Enacts Remote Seller Collection Rules

South Dakota has enacted sales and use tax collection requirements for remote sellers who meet certain sales thresholds.

Remote Seller Collection

Under the new rules, a retailer must collect sales and use tax in South Dakota, even if it does not have a physical presence in the state, if:

  1. the seller’s gross revenue from the sale of tangible personal property, any product transferred electronically, or services delivered into South Dakota exceeds $100,000; or
  2. the seller sold tangible personal property, any product transferred electronically, or services for delivery into South Dakota in 200 or more separate transactions.

The rules impose the collection requirement if seller meets either of the criteria in the previous or current calendar year.

Collection Start Date

Sellers are responsible for collecting the tax beginning on May 1, 2016.

Constitutional Challenges to the Law

The legislation also provides an expedited appeals process for any challenges to the constitutionality of the law.

S.B. 106, Laws 2016, effective March 22, 2016, and applicable as noted above

News Release, California Department of Tax and Fee Administration, November 3, 2017
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AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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