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:
- 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
- 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