Tax & Accounting Blog

South Dakota Use Tax Notification Guidance

Indirect Tax, Sales and Use Tax, Sales Tax Nexus April 12, 2011

The South Dakota Department of Revenue has issued guidance for non-collecting retailers making sales into South Dakota. Due to the passage of SB146 out-of-state retailers that are not required to collect sales tax and that have annual gross sales into South Dakota of $100,000 or more will be required to give notice to customers on the billing statement and receipt that South Dakota use tax is due to the South Dakota Department of Revenue on non-exempt purchases of tangible personal property, services and products transferred electronically. This requirement becomes effective on July 1.

Affected retailers will at that time be required to place certain specific information on their websites or catalogs and invoices. Retailers required to provide a similar notice for another state in addition to South Dakota are permitted to provide a consolidated notice so long as the notice includes the required information, specifically references South Dakota, and meets the placement requirements of the notice.

The guidance provides the specific details of what must be included and where that information must be displayed.

South Dakota Sales Tax Public Notice for Non-Collection Retailers,South Dakota, (Apr. 1, 2011)