South Dakota: Sales Tax on Returnable Containers
- Sales Tax News
- Apr 20, 2015 | Gail Cole
Retailers in South Dakota are required to charge sales tax on deposits for returnable (reusable) containers.
According to the South Dakota Department of Revenue, the tax is refunded to the customer upon the return of the container unless one of the following is true:
- The container is not identified as the retailer’s by some means, such as a stamp or logo.
- The retailer does not identify or keep records regarding which customers have their containers.
- “The retailer returns the deposit on any container returned regardless of where the container was obtained by the customer.”
- The retailer does not attempt to retrieve containers that are not returned voluntarily.
- Ownership of the container passes to the customer.
Additional details are available in the department’s April e-newsletter.
Don’t make sales tax any more complicated than it already is. Instead, simplify sales tax management by implementing automated sales tax Software-as-a-Service. Learn how it works.