South Dakota Sales Tax Continues to Evolve

Bradley Feimer
May 5, 2023

When South Dakota first adopted its thresholds for determining what remote sellers would become obligated to collect and remit their sales tax, the state specified that it would apply to companies that had, on an annual basis, $100,000 in gross sales or engaged in 200 or more separate transactions into the state. Once the Wayfair case was decided in South Dakota’s favor, many states, viewing those thresholds as a sort of “safe harbor,” adopted similar requirements in a rolling succession.

However, in the intervening years, states have reconsidered these rules and adjusted their thresholds in ways that better suit their local economies. Similarly, South Dakota enacted Senate Bill 30, which removes the 200-transaction count threshold, effective July 1, 2023. While South Dakota did not specifically perform a revenue impact analysis, it seems likely that both the governor and the legislature were confident that excusing the smallest sellers from sales tax compliance would not significantly impact their tax coffers. In fact, an argument could be made that excluding small sellers increases department of revenue efficiency. After all, small sellers with little tax resources are likely to have more questions and make more mistakes.

It remains to be seen as to whether this recent change to threshold requirements will again lead to a trend for ease of administration for small sellers in other jurisdictions across the country.

Take Action

Want to know more about South Dakota sales tax? Connect with our team for the details.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Bradley Feimer

Bradley Feimer is Regulatory Counsel at Sovos. Within Sovos’s Regulatory Analysis function, Bradley focuses on domestic sales tax, international Value Added Tax, and Global Sales Tax. Bradley received a B.A. in English from The Ohio State University and J.D. at Suffolk University Law School. Bradley is a member of the Massachusetts Bar.
Share This Post

North America Sales & Use Tax
June 1, 2023
3 Things to Remember if You Get a Sales Tax Notice

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

North America Unclaimed Property
May 30, 2023
How to Set Up a Successful Unclaimed Property Program

Unclaimed property compliance can be difficult and overwhelming. Clients often ask what they should be doing to ensure they are compliant with the various laws and regulations. It isn’t easy, especially if you have multiple property types such as checks, credits or customer accounts that have the potential to become unclaimed property in multiple states. […]

North America ShipCompliant
May 30, 2023
How Hold At Locations Improve Your Customers’ Wine Delivery Experience

Direct-to-consumer shipping wine lovers enjoy the convenience of having their favorite vinos shipped to their front door. But what happens when, for whatever reason, they aren’t available to accept their wine deliveries? Whether they aren’t available during the day or they don’t have someone 21 or older available to sign for their package, these challenges […]

North America Sales & Use Tax
May 30, 2023
Identifying Sales Tax Liabilities and Why They Matter

By Steve Claflin, CLA It’s incredible that it has now been five years since the landmark Wayfair decision. It seems like just yesterday we were reading the case, alerting clients and tracking the ever-developing state guidance. Unfortunately, many companies still are not familiar with their sales tax filing obligations caused by economic nexus, or they […]

North America ShipCompliant
May 25, 2023
Out-of-State Breweries Gain Self Distribution, DtC Rights in Oregon

Under a settlement agreement, breweries located outside of Oregon now have more options for selling into the Beaver State, including direct-to-consumer (DtC) shipping and self-distribution to retailers. The settlement arose out of a lawsuit filed by a group of Washington breweries last year challenging Oregon laws that limited beer self-distribution to in-state breweries and DtC […]