Department of Revenue Updates System for Sales Tax Increase The South Dakota State sales and use tax rate increases from 4 percent to 4.5 percent starting on June 1, 2016. The South Dakota Department of Revenue has been making changes to its tax collection software, forms and publications to account for the one-half percent sales and use tax increase created by House Bill 1182. “Our goal is to make this transition as easy as possible for taxpayers,” Department of Revenue Secretary Andy Gerlach said. “We are currently changing our software, forms and publications and communicating with stakeholders to answer any questions about the new sales and use tax rate.” South Dakota sales or use tax applies to the gross receipts of all retail sales, including the sale, lease or rental of products and services. Doug Schinkel, Director of Business Tax, said “Plainly put, if you are currently paying 4% state sales tax, on June 1st you will begin paying 4.5% sales tax.” For more information, visit the Department of Revenue website at http://dor.sd.gov/ and click the link regarding the state sales and use tax increase. For additional assistance, please call the Department of Revenue Taxpayer Assistance Center at 800-829-9188 or email at bustax@state.sd.us.
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