Avalara Taxrates > Blog > Sales Tax News > South Dakota Tax Refund Program - Avalara

South Dakota Tax Refund Program


 South Dakota: Are All 6 Requirements for Tax Refund Met?

The South Dakota Department of Revenue has published an information bulletin on the state's Tax Refund and Tax Delay Payment Program.

Sales tax refunds may be available for "licensed contractors and subcontractors who are fabricators if ALL six of the following criteria are met:"

  • "Sales or use tax was paid by the contractor or subcontractor requesting the refund;"
  • The items upon which the sales and use tax was paid were purchased by the person seeking the refund;
  • "The items upon which the sales and use tax was paid were fabricated by the contractor or subcontractor in South Dakota;"
  • "The fabricated item was used outside of South Dakota by the contractor or subcontractor in the performance of a contract:"
  • "The fabricated item is not returned to South Dakota;" and
  • "The fabricated item is exempt from sales or use tax in the state where the contract is performed."

If all of the above conditions are met, 100% of the sales or use tax may be refunded. The refund window is 36 months "of the date the material is taken out of state."

The department underscores that the publication is a guide only, and asks interested parties to contact the DOR with specific questions.

Get Free Tax Rate Tables

South Dakota State Rates

photo credit: jimbowen0306 via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.