South Dakota 2025 Regular Session

South Dakota House Bill HB1027 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25.262.13 100th Legislative Session 1027
	1	+	25.262.12 100th Legislative Session 1027
2	2
3	3
4	4		2025 South Dakota Legislature
5	5		House Bill 1027
6		-	ENROLLED
7		-
8		-	AN ACT
9		-
10		-
11		-	ENTITLED An Act to repeal obsolete provisions pertaining to noncollecting retailers.
12		-	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
13		-	Section 1. That § 10-63-1 be REPEALED.
14		-	Section 2. That § 10-63-2 be REPEALED.
15		-	Section 3. That § 10-63-3 be REPEALED.
16		-	Section 4. That § 10-63-4 be REPEALED.
17		-	Section 5. That § 10-63-5 be REPEALED.
18		-	Section 6. That § 10-63-6 be REPEALED.
19		-	Section 7. That § 10-63-7 be REPEALED.
20		-	Section 8. That § 10-63-8 be REPEALED.
21		-	Section 9. That § 10-63-9 be REPEALED. 25.262.13 2 1027
22		-	HB1027 ENROLLED
23		-	An Act to repeal obsolete provisions pertaining to noncollecting retailers.
24		-
25		-
26		-
27		-
28		-	I certify that the attached Act originated in
29		-	the:
30		-
31		-	House as Bill No. 1027
32		-
33		-
34		-
35		-	Chief Clerk
36		-
37		-
38		-
39		-
40		-	Speaker of the House
41		-
42		-	Attest:
43		-
44		-
45		-
46		-
47		-	Chief Clerk
48		-
49		-
50		-
51		-
52		-	President of the Senate
53		-
54		-	Attest:
55	6
56	7
57	8
58	9
59	10
60		-	Secretary of the Senate
61	11
	12	+	Introduced by: The Chair of the Committee on Taxation at the request of the Department of Revenue
62	13
63		-
64		-	House Bill No. 1027
65		-	File No. ____
66		-	Chapter No. ______
67		-
68		-
69		-
70		-	Received at this Executive Office
71		-	this _____ day of _____________,
72		-
73		-	2025 at ____________M.
74		-
75		-
76		-
77		-	By
78		-	for the Governor
79		-
80		-
81		-	The attached Act is hereby
82		-	approved this ________ day of
83		-	______________, A.D., 2025
84		-
85		-
86		-
87		-
88		-
89		-	Governor
90		-
91		-	STATE OF SOUTH DAKOTA ,
92		-	ss.
93		-	Office of the Secretary of State
94		-
95		-
96		-	Filed ____________, 2025
97		-	at _________ o'clock __M.
98		-
99		-
100		-
101		-
102		-
103		-	Secretary of State
104		-
105		-
106		-
107		-	By
108		-	Asst. Secretary of State
109		-
110		-
	14	+	Underscores indicate new language.
	15	+	Overstrikes indicate deleted language.
	16	+	An Act to repeal obsolete provisions pertaining to noncollecting retailers. 1
	17	+	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2
	18	+	Section 1. That § 10-63-1 be REPEALED. 3
	19	+	Terms used in this chapter mean: 4
	20	+	(1) "De minimis online auction website," any online auction website that facilitates 5
	21	+	total gross sales in South Dakota in the prior calendar year of less than one hundred 6
	22	+	thousand dollars and reasonably expects South Dakota sales in the current 7
	23	+	calendar year will be less than one hundred thousand dollars; 8
	24	+	(2) "De minimis retailer," any noncollecting retailer that made total gross sales in 9
	25	+	South Dakota in the prior calendar year of less than one hundred thousand dollars 10
	26	+	and reasonably expects South Dakota sales in the current calendar year will be less 11
	27	+	than one hundred thousand dollars; 12
	28	+	(3) "Noncollecting retailer," any retailer, not currently registered to collect and remit 13
	29	+	South Dakota sales and use tax, who makes sales of tangible personal property, 14
	30	+	services, and products transferred electronically from a place of business outside 15
	31	+	of South Dakota to be shipped to South Dakota for use, storage, or consumption 16
	32	+	and who is not required to collect South Dakota sales or use taxes; 17
	33	+	(4) "Online auction website," a collection of web pages on the Internet that allows any 18
	34	+	person to display tangible personal property, services, or products transferred 19
	35	+	electronically for sale which is purchased through a competitive process where a 20
	36	+	participant places a bid with the highest bidder purchasing the property, service, 21
	37	+	or product when the bidding period ends; 22
	38	+	(5) "South Dakota purchaser," any purchaser that purchases tangible personal 23
	39	+	property, services, or products transferred electronically to be shipped or 24
	40	+	transferred to South Dakota. 25
	41	+	Section 2. That § 10-63-2 be REPEALED. 26 25.262.12 2 1027
	42	+	Underscores indicate new language.
	43	+	Overstrikes indicate deleted language.
	44	+	Pursuant to this chapter, each noncollecting retailer shall give notice that South 1
	45	+	Dakota use tax is due on nonexempt purchases of tangible personal property, services, or 2
	46	+	products transferred electronically and shall be paid by the South Dakota purchaser. The 3
	47	+	notice shall be readily visible and contain the information as follows: 4
	48	+	(1) The noncollecting retailer is not required, and does not collect South Dakota sales 5
	49	+	or use tax; 6
	50	+	(2) The purchase is subject to state use tax unless it is specifically exempt from 7
	51	+	taxation; 8
	52	+	(3) The purchase is not exempt merely because the purchase is made over the 9
	53	+	Internet, by catalog, or by other remote means; 10
	54	+	(4) The state requires each South Dakota purchaser to report any purchase that was 11
	55	+	not taxed and pay tax on the purchase. The tax may be reported and paid on the 12
	56	+	South Dakota use tax form; and 13
	57	+	(5) The use tax form and corresponding instructions are available on the South Dakota 14
	58	+	Department of Revenue website. 15
	59	+	Section 3. That § 10-63-3 be REPEALED. 16
	60	+	The notice required by § 10-63-2 on a website shall occur on a page necessary to 17
	61	+	facilitate the applicable transaction. The notice shall be sufficient if the noncollecting 18
	62	+	retailer provides a prominent linking notice that reads as follows: "See important South 19
	63	+	Dakota sales and use tax information regarding the tax you may owe directly to the State 20
	64	+	of South Dakota." The prominent linking notice shall direct the purchaser to the principal 21
	65	+	notice information required by § 10-63-2. 22
	66	+	The notice required by § 10-63-2 in a catalog shall be part of the order form. The 23
	67	+	notice shall be sufficient if the noncollecting retailer provides a prominent reference to a 24
	68	+	supplemental page that reads as follows: "See important South Dakota sales and use tax 25
	69	+	information regarding the tax you may owe directly to the State of South Dakota on page 26
	70	+	____." The notice on the order form shall direct the purchaser to the page that includes 27
	71	+	the principal notice required by § 10-63-2. 28
	72	+	Section 4. That § 10-63-4 be REPEALED. 29
	73	+	For any internet purchase made pursuant to this chapter the invoice notice shall 30
	74	+	occur on the electronic order confirmation. The notice shall be sufficient if the noncollecting 31
	75	+	retailer provides a prominent linking notice that reads as follows: "See important South 32
	76	+	Dakota sales and use tax information regarding the tax you may owe directly to the State 33 25.262.12 3 1027
	77	+	Underscores indicate new language.
	78	+	Overstrikes indicate deleted language.
	79	+	of South Dakota." The invoice notice link shall direct the purchaser to the principal notice 1
	80	+	required by § 10-63-2. If the noncollecting retailer does not issue an electronic order 2
	81	+	confirmation, the complete notice shall be placed on the purchase order, bill, receipt, sales 3
	82	+	slip, order form, or packing statement. 4
	83	+	For any catalog or phone purchase made pursuant to this chapter the complete 5
	84	+	notice shall be placed on the purchase order, bill, receipt, sales slip, order form, or packing 6
	85	+	statement. 7
	86	+	Section 5. That § 10-63-5 be REPEALED. 8
	87	+	For any internet purchase made pursuant to this chapter, notice on the check-out 9
	88	+	page fulfills both the website and invoice notice requirements simultaneously, the notice 10
	89	+	shall be sufficient if the noncollecting retailer provides a prominent linking notice that 11
	90	+	reads as follows: "See important South Dakota sales and use tax information regarding 12
	91	+	the tax you may owe directly to the State of South Dakota." The check -out page notice 13
	92	+	link shall direct the purchaser to the principal notice required by § 10-63-2. 14
	93	+	If a retailer is required to provide a similar notice for another state in addition to 15
	94	+	South Dakota, the retailer may provide a consolidated notice so long as the notice includes 16
	95	+	the information contained in § 10-63-2, specifically references South Dakota, and meets 17
	96	+	the placement requirements of this section. 18
	97	+	Section 6. That § 10-63-6 be REPEALED. 19
	98	+	A noncollecting retailer may not state or display or imply that no tax is due on any 20
	99	+	South Dakota purchase unless the display is accompanied by the notice required by § 10-21
	100	+	63-2 each time the display appears. If a summary of the transaction includes a line 22
	101	+	designated "sales tax" and shows the amount of sales tax as zero, this constitutes a display 23
	102	+	implying that no tax is due on the purchase. This display shall be accompanied by the 24
	103	+	notice required by § 10-63-2 each time it appears. 25
	104	+	Notwithstanding the limitation in this section, if a noncollecting retailer knows that 26
	105	+	a purchase is exempt from South Dakota tax pursuant to South Dakota law, the 27
	106	+	noncollecting retailer may display or indicate that no sales or use tax is due even if the 28
	107	+	display is not accompanied by the notice required by § 10-63-2. 29
	108	+	Section 7. That § 10-63-7 be REPEALED. 30 25.262.12 4 1027
	109	+	Underscores indicate new language.
	110	+	Overstrikes indicate deleted language.
	111	+	With the exception of notification on an invoice, the provisions of this chapter apply 1
	112	+	to online auction websites. 2
	113	+	Section 8. That § 10-63-8 be REPEALED. 3
	114	+	A de minimis retailer and a de minimis online auction website are exempt from the 4
	115	+	notice requirements provided by this chapter. 5
	116	+	Section 9. That § 10-63-9 be REPEALED. 6
	117	+	No criminal penalty or civil liability may be applied or assessed for failure to comply 7
	118	+	with the provisions of this chapter. 8