25.262.12 100th Legislative Session 1027
2025 South Dakota Legislature
House Bill 1027
Introduced by: The Chair of the Committee on Taxation at the request of the Department of Revenue
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to repeal obsolete provisions pertaining to noncollecting retailers. 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2
Section 1. That § 10-63-1 be REPEALED. 3
Terms used in this chapter mean: 4
(1) "De minimis online auction website," any online auction website that facilitates 5
total gross sales in South Dakota in the prior calendar year of less than one hundred 6
thousand dollars and reasonably expects South Dakota sales in the current 7
calendar year will be less than one hundred thousand dollars; 8
(2) "De minimis retailer," any noncollecting retailer that made total gross sales in 9
South Dakota in the prior calendar year of less than one hundred thousand dollars 10
and reasonably expects South Dakota sales in the current calendar year will be less 11
than one hundred thousand dollars; 12
(3) "Noncollecting retailer," any retailer, not currently registered to collect and remit 13
South Dakota sales and use tax, who makes sales of tangible personal property, 14
services, and products transferred electronically from a place of business outside 15
of South Dakota to be shipped to South Dakota for use, storage, or consumption 16
and who is not required to collect South Dakota sales or use taxes; 17
(4) "Online auction website," a collection of web pages on the Internet that allows any 18
person to display tangible personal property, services, or products transferred 19
electronically for sale which is purchased through a competitive process where a 20
participant places a bid with the highest bidder purchasing the property, service, 21
or product when the bidding period ends; 22
(5) "South Dakota purchaser," any purchaser that purchases tangible personal 23
property, services, or products transferred electronically to be shipped or 24
transferred to South Dakota. 25
Section 2. That § 10-63-2 be REPEALED. 26 25.262.12 2 1027
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Overstrikes indicate deleted language.
Pursuant to this chapter, each noncollecting retailer shall give notice that South 1
Dakota use tax is due on nonexempt purchases of tangible personal property, services, or 2
products transferred electronically and shall be paid by the South Dakota purchaser. The 3
notice shall be readily visible and contain the information as follows: 4
(1) The noncollecting retailer is not required, and does not collect South Dakota sales 5
or use tax; 6
(2) The purchase is subject to state use tax unless it is specifically exempt from 7
taxation; 8
(3) The purchase is not exempt merely because the purchase is made over the 9
Internet, by catalog, or by other remote means; 10
(4) The state requires each South Dakota purchaser to report any purchase that was 11
not taxed and pay tax on the purchase. The tax may be reported and paid on the 12
South Dakota use tax form; and 13
(5) The use tax form and corresponding instructions are available on the South Dakota 14
Department of Revenue website. 15
Section 3. That § 10-63-3 be REPEALED. 16
The notice required by § 10-63-2 on a website shall occur on a page necessary to 17
facilitate the applicable transaction. The notice shall be sufficient if the noncollecting 18
retailer provides a prominent linking notice that reads as follows: "See important South 19
Dakota sales and use tax information regarding the tax you may owe directly to the State 20
of South Dakota." The prominent linking notice shall direct the purchaser to the principal 21
notice information required by § 10-63-2. 22
The notice required by § 10-63-2 in a catalog shall be part of the order form. The 23
notice shall be sufficient if the noncollecting retailer provides a prominent reference to a 24
supplemental page that reads as follows: "See important South Dakota sales and use tax 25
information regarding the tax you may owe directly to the State of South Dakota on page 26
____." The notice on the order form shall direct the purchaser to the page that includes 27
the principal notice required by § 10-63-2. 28
Section 4. That § 10-63-4 be REPEALED. 29
For any internet purchase made pursuant to this chapter the invoice notice shall 30
occur on the electronic order confirmation. The notice shall be sufficient if the noncollecting 31
retailer provides a prominent linking notice that reads as follows: "See important South 32
Dakota sales and use tax information regarding the tax you may owe directly to the State 33 25.262.12 3 1027
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Overstrikes indicate deleted language.
of South Dakota." The invoice notice link shall direct the purchaser to the principal notice 1
required by § 10-63-2. If the noncollecting retailer does not issue an electronic order 2
confirmation, the complete notice shall be placed on the purchase order, bill, receipt, sales 3
slip, order form, or packing statement. 4
For any catalog or phone purchase made pursuant to this chapter the complete 5
notice shall be placed on the purchase order, bill, receipt, sales slip, order form, or packing 6
statement. 7
Section 5. That § 10-63-5 be REPEALED. 8
For any internet purchase made pursuant to this chapter, notice on the check-out 9
page fulfills both the website and invoice notice requirements simultaneously, the notice 10
shall be sufficient if the noncollecting retailer provides a prominent linking notice that 11
reads as follows: "See important South Dakota sales and use tax information regarding 12
the tax you may owe directly to the State of South Dakota." The check -out page notice 13
link shall direct the purchaser to the principal notice required by § 10-63-2. 14
If a retailer is required to provide a similar notice for another state in addition to 15
South Dakota, the retailer may provide a consolidated notice so long as the notice includes 16
the information contained in § 10-63-2, specifically references South Dakota, and meets 17
the placement requirements of this section. 18
Section 6. That § 10-63-6 be REPEALED. 19
A noncollecting retailer may not state or display or imply that no tax is due on any 20
South Dakota purchase unless the display is accompanied by the notice required by § 10-21
63-2 each time the display appears. If a summary of the transaction includes a line 22
designated "sales tax" and shows the amount of sales tax as zero, this constitutes a display 23
implying that no tax is due on the purchase. This display shall be accompanied by the 24
notice required by § 10-63-2 each time it appears. 25
Notwithstanding the limitation in this section, if a noncollecting retailer knows that 26
a purchase is exempt from South Dakota tax pursuant to South Dakota law, the 27
noncollecting retailer may display or indicate that no sales or use tax is due even if the 28
display is not accompanied by the notice required by § 10-63-2. 29
Section 7. That § 10-63-7 be REPEALED. 30 25.262.12 4 1027
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Overstrikes indicate deleted language.
With the exception of notification on an invoice, the provisions of this chapter apply 1
to online auction websites. 2
Section 8. That § 10-63-8 be REPEALED. 3
A de minimis retailer and a de minimis online auction website are exempt from the 4
notice requirements provided by this chapter. 5
Section 9. That § 10-63-9 be REPEALED. 6
No criminal penalty or civil liability may be applied or assessed for failure to comply 7
with the provisions of this chapter. 8