Avalara Taxrates > Blog > Sales Tax Rate Changes > South Dakota sales tax rate change June 2016 - Avalara

South Dakota sales tax rate increase June 1, 2016

 The South Dakota state sales tax rate, June 1, 2016.

The state sales and use tax rate in South Dakota will increase from 4% to 4.5%, effective June 1, 2016.

The new rate applies to the following:

  • Amusement device tax
  • Farm machinery excise tax
  • Sale, lease, or rental of tangible personal property, products transferred electronically, and services

The 4.5% rate also applies to Indian Country, “where there is a tax collection agreement,” beginning June 1, 2016.

Construction materials

For prime contractors, the bid or award date determines the applicable sales tax rate for the entire project, including materials purchased by subcontractors. The 4% state rate applies to materials for entire project bids made prior to June 1, 2016. The 4.5% rate applies to all materials for projects bids made on or after June 1, 2016.

See the South Dakota Department of Revenue for additional information.

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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.