SALT Report 3820 – The South Dakota state sales and use tax rate will increase from 4 percent to 4.5 percent on June 1, 2016. The new state sales and use tax rate applies to sales and rentals of tangible personal property, products transferred electronically, services, farm machinery purchases and amusement devices. The rate increase also applies to transactions which occur within the special jurisdictions on Indian country. Municipal sales taxes are not affected by this tax increase.
Doug Schinkel, Director of Business Tax said, “Simply put, all transactions that are currently subject to the 4 percent state sales or use tax rate, will be subject to the 4.5 percent sales or use tax rate effective June 1, 2016.”
This increase is expected to raise $107.4 million.
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