South Dakota has introduced House Bill 1182.
This new legislation would increase the sales, use, and excise tax on farm machinery and amusement device tax rate from 4.0% to 4.5%.
If passed the rate increase would be effective, June 1, 2016. The purpose of this new legislation is for increasing education funding, reducing property taxes, and to declare an emergency.
According to the House Bill, the rate increase would affect a myriad of businesses that sell tangible personal property and service providers. Businesses that could be affected include retailers, service providers, oil and gas services, utility providers, telecommunication service providers, places of amusement that charge admissions, operators of amusement devices, events that charge admission such as athletic contests, passenger transportation providers, tangible personal property rentals, electronically delivered tangible personal property, providers of ancillary services, farm machinery leases, and irrigation equipment used exclusively for agricultural purposes.
Sales tax rates by jurisdiction are changing constantly and continue to grow in complexity. Most SMBs have limited tax expertise in-house. Compliance is key to avoid expensive audits and penalties. Learn more about Vertex Cloud.