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Collection Allowance Credit Available January 1

For immediate release:   Wednesday, November 6, 2013


For more information:  Doug Schinkel, Director, Business Tax Division, 605.773.3311



Collection Allowance Credit Available January 1


PIERRE, S.D.  – Beginning Jan. 1, 2014, participating retailers will be eligible to claim a collection allowance credit when filing and paying their sales tax as imposed by chapter 10-45, under a law passed by the 2013 South Dakota Legislature.


Senate Bill 51 established the collection allowance credit of 1.5 percent of the tax due, not to exceed $70 for each reporting period, to taxpayers who timely file and pay tax returns electronically through the Department of Revenue.


“Retailers who want to receive this credit must sign up to file and pay taxes electronically through EPath, our online tax file and pay system,” states Doug Schinkel, director of Business Tax Division. “Information on electronic tax filing and how you can create an EPath account is available online at http://dor.sd.gov/epath/.”


The collection allowance applies to all taxes reported on the sales tax return form including sales tax, use tax, tourism tax, municipal sales taxes, telecommunications gross receipts tax, excise tax on farm machinery, amusement device tax, motor vehicle leasing tax, intermediate care facility tax, Sioux Falls lodging tax and tax collection agreement taxes.


Licensees who have outstanding tax returns, who have outstanding tax balances due to the Department or those that do not file and pay electronically will not receive the allowance. In addition, the allowance does not apply to contractors’ excise tax returns. 


Do you have questions on electronic tax return filing or the collection allowance credit? Contact the South Dakota Department of Revenue at bustax@state.sd.us or call 800-829-9188.