South Dakota is making changes to its tax rules effective July 1, 2023. The state sales tax rate will be temporarily reduced from 4.5% to 4.2% until June 30, 2027. Additionally, the economic nexus threshold used to determine whether remote sellers are required to charge South Dakota sales tax is being updated. The previous threshold of $100,000 in gross sales or 200 or more separate transactions in the state will no longer include the 200 or more transactions threshold starting July 1, 2023.
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