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Understanding Sales Tax on Services in South Dakota: What Merchants Need to Know

  • Majority of U.S. states charge sales tax on tangible personal property and digital goods
  • States are now looking to generate revenue by taxing services
  • South Dakota has a state sales tax rate of 4.2%
  • Services are taxable by default in South Dakota
  • Examples of taxable services include personal services and repair services
  • There are exemptions for services in South Dakota, such as health, educational, and agricultural services
  • Consult with a sales tax professional to determine if your business services are subject to state sales tax

Source: taxjar.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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