RAPID CITY, S.D. (KEVN) - If you haven’t noticed yet, when you check out from an online retail site you should see a slight hike in costs. That’s because South Dakota now requires remote sellers to remit sales taxes.
South Dakota’s requirement applies to businesses without a physical presence in the state that meet certain criteria:
• Gross revenue from sales into South Dakota exceed $100,000
• The business made sales for delivery into South Dakota in at least 200 transactions
If consumers make a purchase from a remote seller and feel they are not charged the correct amount of sales tax, contact the Department of Revenue by email or toll free at 1-800-829-9188. When contacting the department, provide business specifics such as its website.
If sales tax is not charged, South Dakotans still owe use tax. Use tax is also due if the sales tax paid to another state was lower than what would have been paid in South Dakota—in this case the difference in the two amounts is how much use tax is owed.
The Department of Revenue offers an online option for South Dakotans to file and pay use tax with a credit card or ACH debit transaction. This feature requires no account registration and can be accessed by visiting http://dor.sd.gov then clicking the online use tax payment button under e-services.
For more information on South Dakota’s remote seller law, visit http://sd.gov/remoteseller.