Establish a timeframe within which a remote seller and marketplace provider must register and remit sales tax.
Summary
Senate Bill 43 creates a short grace period for certain out-of-state and online sellers before they must begin registering and remitting South Dakota sales tax. Under the bill, a remote seller that meets the state’s economic nexus criteria is not required to register and remit tax until the first day of the first month that begins at least 30 days after the seller meets those criteria. The same 30-day timing rule is extended to marketplace providers that meet the applicable marketplace nexus criteria.
The bill is a narrow administrative change to South Dakota’s sales tax enforcement framework. It does not change who is subject to tax, but it clarifies when the obligation to register and start remitting begins under chapters 10-45, 10-46E, and 10-52 for remote sellers and under chapters 10-45 and 10-52 for marketplace providers. In practical terms, it gives affected businesses a brief window to comply after crossing the threshold that triggers South Dakota tax obligations.
Impact
SB43 amends South Dakota’s sales tax statutes by adding new sections to chapters 10-64 and 10-65, creating a uniform 30-day delay before registration and remittance duties begin for qualifying remote sellers and marketplace providers. The bill affects online retailers, marketplace facilitators, and the Department of Revenue by setting a clear compliance timeline tied to economic nexus thresholds rather than immediate registration upon qualification.
Sentiment
The bill appears to have been broadly supported and noncontroversial. All recorded committee votes were unanimous, and the final floor vote passed overwhelmingly, 65-2. The absence of committee transcript debate suggests the measure was viewed as a technical or administrative clarification rather than a major policy change.
Contention
There is little evidence of substantive opposition in the available record. The only notable point of potential concern is the balance between tax administration and compliance burden: the bill gives remote sellers and marketplace providers a short grace period to register and remit after meeting nexus criteria, which may be seen as helpful for compliance but could also delay tax collection slightly. The recorded votes show almost no resistance, indicating any disagreement was minimal.