For Immediate Release: Monday, May 23, 2016
Contact: Jonathan Harms, Communications Director, 605-773-3311

South Dakota sales tax increases on June 1

PIERRE, S.D. – The South Dakota state sales and use tax rate will increase from 4 percent to 4.5 percent on June 1.

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.

“During the planning and implementation for the new sales tax rate, our goal has been to make the transition as easy as possible for taxpayers,” Department of Revenue Secretary, Andy Gerlach said.

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.”

Taxpayers with questions may call the South Dakota Department of Revenue Taxpayer Assistance Center at (800) 829-9188.

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