South Dakota Proposes Raising the State Sales Tax Rate and Eliminating Collection Allowance

2025 SD Legislation Proposed Sales Tax Increase

The South Dakota legislature for 2025 is proposing two bills that may affect your business

HB 1019 : Eliminate Certain Property Taxes Levied on Owner-Occupied Single-Family Dwellings, and to Increase Certain Gross Receipts Tax Rates and Use Tax Rates.

HB 1037 : Repealing the Tax Collection Allowance Credit for Filing Returns and Remitting Taxes Electronically.

Dakota Business Tax LLC is here to help

At Dakota Business Tax LLC, we can better help ensure that what you are being taxed on is truly taxable, taxed under the correct tax laws, or what items can and should be removed from a tax assessment. The taxability of products or services is not always as clear-cut as they appear to be. It can be a challenge for any business on their own to determine what taxes they truly owe.

As a former South Dakota State Sales, Use, and Contractors’ Excise Tax Auditor for over 24 years, I bring an unparalleled understanding, expertise, and insight into the application of South Dakota tax law and audit procedures. I know how to correctly explain how an item or service is used so that the Auditor or Revenue Agent understands that a non-taxable item or service is truly non-taxable. It’s not just understanding South Dakota’s laws, it’s also understanding the administrative rules, court cases, and past state decisions.

Contact Dakota Business Tax LLC today at contact@dbtllc.com or call us at (605) 389-7345 to see how our South Dakota Audit Assistance & Defense and Consultation & Advisory services can help you, your business, or your clients, and to answer any questions you may have.