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South Dakota: Sales Tax on Returnable Containers


 South Dakota sales tax would probably apply to the charge for this reusable bottle.

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.

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photo credit: It's nearly Christmas! via photopin (license)


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.