Sales tax rate decrease July 1

On July 1, 2023, South Dakota’s tax rate will decrease from 4.5 percent to 4.2 percent.

The three-tenth percent sales tax decrease was created by House Bill 1137.

The state tax rates affected by the changes are:

• Sales and use tax;

• Excise tax on farm machinery and farm attachment units;

• Amusement device tax; and,

• Motor vehicle gross receipts tax.

HB 1137 includes a sunset clause which repeals the rate reduction effective June 30, 2027.