New Sales and Use Tax Guide for South Dakota
- Jan 16, 2013 | Gail Cole
The South Dakota Department of Revenue has released an updated Sales and Use Tax Guide, which provides basic descriptions of the state's various taxes. South Dakota does not have personal income tax, corporate tax, or unitary tax. The state sales and use tax rate is 4%.
The guide explains the following points:
Tangible Personal Property
"[S]ales tax applies to the gross receipts of all retail sales, including the sale, lease, or rental of tangible personal property or any product transferred electronically, and the sale of services."
"Sales tax applies where the customer receives the product or service."
Electronically delivered products are taxed based on the customer address on file, or, in the event there is no address on file, "where the product is first available for transmission by the seller."
Personal care services, such as haircuts, massages, etc, are taxed at the location where the service is performed.
Services on products, such as repair services, are taxed at the location wherethe product is delivered to the customer.
Lease or rental products are taxed where the customer receives the product, or, in the event it is moved, where it is moved.
Use tax is due on all products or services used, stored, or consumed in South Dakota if South Dakota sales tax was not paid.
In South Dakota, municipalities may impose municipal sales and use tax up to 2%. This tax applies to the same products and services as the state sales and use tax.
The guide goes on to explain a variety of other taxes, including, but not limited to:
- Motor Vehicles Lease and Rentals;
- Wireless Gross Receipts Tax; and
- Sales and Use Tax on Indian Country.