South Dakota Department of Revenue readying sales tax reduction

On July 1st, South Dakota’s sales tax rate will decrease from 4.5 percent to 4.2 percent.

A press release from the Department of Revenue says they are working diligently to account for the three-tenth percent sales tax decrease created by House Bill 1137.

The state tax rates affected by the changes are: the general sales and use tax; the excise tax on farm machinery and farm attachment units, the amusement device tax and
the motor vehicle gross receipts tax.

Department of Revenue Secretary Michael Houdyshell says it is their intent to make this transition as easy as possible for those reporting taxes. He says the department is updating forms, publications, and software.

The law calls for the tax reduction to end after four years.


April 4, 2023