South Dakota after Wayfair: a 100,000 dollar test for sellers, and a state rate that changes on July 1, 2027
South Dakota wrote the law that changed online sales tax for everyone. Its 2016 statute asked remote sellers that delivered more than 100,000 dollars of goods into the state, or made 200 or more separate transactions, to collect its tax, and the case over that statute reached the Supreme Court. Today the codified rule is simpler: a seller with no physical presence in South Dakota must collect when its gross revenue from sales delivered there passes 100,000 dollars in the previous or current calendar year, and the codified text no longer carries a transaction count. The state's own rate is the second thing a seller should watch. The statute that sets it reads four and two-tenths percent today, and a second version of the same section, marked effective July 1, 2027, reads four and one-half percent. This page walks through the test, the registration deadline the Department of Revenue publishes, the rate change, and a progress bar plan for an order threshold that survives a tax change because Shopify counts product prices, not tax, toward a minimum. It also uses two South Dakota events as planning dates: the Sturgis Motorcycle Rally in August 2027 and the Custer State Park Buffalo Roundup in September. This is not tax advice; confirm with the South Dakota Department of Revenue.
A progress bar that survives the July 2027 rate change
Shipping
South Dakota has 75,811 square miles of land and fewer than a million residents, and 42.8 percent of them lived in rural areas in 2020, so a delivery promise here is mostly a promise about distance, not about density. The tax side is more concrete. A seller without a physical presence collects once its gross revenue from South Dakota deliveries passes 100,000 dollars in the previous or current calendar year, registers by the first day of the month at least thirty days later, and files state and municipal tax on one return. A marketplace that facilitates the sales is the one the Department says must remit.
Source: U.S. Census Bureau: State Area Measurements (2010)
Source: U.S. Census Bureau: State urban and rural population, 2020 and 2010
Source: South Dakota Legislative Research Council: SDCL 10-64-2 (codified law)
Source: South Dakota Department of Revenue: Remote Seller Bulletin (August 2025)
Source: South Dakota Department of Revenue: Sales and Use Tax
- Now, before the threshold
Pull your last twelve months of orders shipped to South Dakota addresses and add up gross revenue, product prices and any services. The test is 100,000 dollars in the previous or current calendar year, so you can see how far you are from it before a registration date arrives.
Source: South Dakota Legislative Research Council: SDCL 10-64-2 (codified law)
- The month after you cross 100,000 dollars
Register by the first day of the month that starts at least thirty days after the day you crossed. The Department's own example is a seller that passes the amount on May 28 and begins collecting on July 1. Sell through a marketplace that facilitates the sale and the Department says the marketplace is the one that remits.
Source: South Dakota Department of Revenue: Remote Seller Bulletin (August 2025)
- Before July 1, 2027
Set your free shipping or gift progress bar on a product-price threshold, not a tax-inclusive total. Shopify's Help Center says its minimum purchase amounts count product prices only and never taxes, so a shopper's progress does not move when the statute's rate changes from four and two-tenths to four and one-half percent. Check that your tax settings pick up the new rate on that date.
- Friday, August 6 to Sunday, August 15, 2027
Plan a single offer for the Sturgis Motorcycle Rally window that the City of Sturgis lists. Its dates fall between your July rate change and the autumn, so state the offer's end date on the bar and keep the same threshold you used in July instead of launching a second one in the middle of the rally.
- September 2027, once the park posts the date
The Game, Fish and Parks page listed only the 2026 roundup, on September 25, 2026. Wait for the 2027 date before you print it. When it posts, run a short bar-based offer in the week around it and measure the order value against the same week of the quarter before.
Source: South Dakota Game, Fish and Parks: Custer State Park Buffalo Roundup
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Questions merchants ask
- What is South Dakota's remote seller threshold today?
- SDCL 10-64-2 sets it at gross revenue above one hundred thousand dollars from sales delivered into South Dakota in the previous or current calendar year, and the codified text states no transaction count. The Department's August 2025 bulletin says the same. The 200 transactions in the 2016 Act that the Supreme Court described are not in the codified section's text today. This is not tax advice; confirm with the Department of Revenue.
- What did the Supreme Court decide about South Dakota's law?
- The Court overruled the physical presence rule from Quill and National Bellas Hess, held that the nexus was clearly sufficient on the economic and virtual contacts of the sellers in the case, and sent other Commerce Clause questions back to the state courts. South Dakota's statute itself says no obligation to collect applied before November 1, 2018.
- What is the state sales tax rate on July 1, 2027?
- The Legislative Research Council serves two versions of SDCL 10-45-2. The current one reads four and two-tenths percent. A second version marked effective July 1, 2027 reads four and one-half percent, citing SL 2023 ch 32. If the Legislature changes it before that date, the statute site is where the change will appear first, so check it before you reset your tax settings. Municipal tax of 1 to 2 percent comes on top, per the Department's guide.
- Do I file state and city sales tax separately?
- No. The Department's Remote Seller Bulletin says South Dakota state and municipal taxes are reported and paid on the same sales tax return, so a seller that is registered files one return that covers both.
- Does the Buffalo Roundup have a 2027 date?
- Not on the Game, Fish and Parks page when we checked on October 10, 2026. It lists the 2026 roundup for September 25, 2026 and describes a herd of approximately 1,300 buffalo. This page treats September 2027 as a month-level window and the date as unposted.
The year at a glance
Related reading
Dates to plan around
- State sales tax version of SDCL 10-45-2 effective: four and one-half percentSouth Dakota Legislative Research Council: SDCL 10-45-2 (version effective July 1, 2027)
- 87th Sturgis Motorcycle RallyCity of Sturgis: Sturgis Motorcycle Rally, Dates
Facts and sources
In the Court's description, South Dakota's 2016 Act (S. 106) covered sellers that, annually, deliver more than 100,000 dollars of goods or services into the State or engage in 200 or more separate transactions, and the Act forecloses retroactive application of its requirement.
Cornell Legal Information Institute: South Dakota v. Wayfair, Inc., No. 17-494 (June 21, 2018) (accessed October 10, 2026)
The Court held that the physical presence rule of Quill and National Bellas Hess was overruled, said the nexus was clearly sufficient on the economic and virtual contacts of the sellers sued, and remanded other Commerce Clause claims to be addressed in the first instance by the state courts.
Cornell Legal Information Institute: South Dakota v. Wayfair, Inc., No. 17-494 (June 21, 2018) (accessed October 10, 2026)
SDCL 10-64-2 requires a seller with no physical presence in South Dakota to follow the sales tax chapters as if it had one when its gross revenue from tangible personal property, products transferred electronically or services delivered into South Dakota exceeds one hundred thousand dollars in the previous or current calendar year; the codified text states no transaction count, and its history lists SL 2016 ch 70 and SL 2023 ch 38.
South Dakota Legislative Research Council: SDCL 10-64-2 (codified law) (accessed October 10, 2026)
SDCL 10-64-6 says no obligation to collect or remit the sales tax required by the remote seller chapter may be applied before November 1, 2018.
South Dakota Legislative Research Council: SDCL 10-64-6 (codified law) (accessed October 10, 2026)
The Department's August 2025 Remote Seller Bulletin says a remote seller must register by the first day of the month that starts at least thirty days after the threshold is met, and gives an example in which gross revenue passes 100,000 dollars on May 28 and collection begins on July 1; a business that meets the threshold in the previous calendar year must collect for the following year.
South Dakota Department of Revenue: Remote Seller Bulletin (August 2025) (accessed October 10, 2026)
SDCL 10-45-2, as the Legislative Research Council serves it for today, imposes a tax of four and two-tenths percent on the gross receipts of retail sales of tangible personal property, and cites SL 2023 ch 32 as its latest amendment.
South Dakota Legislative Research Council: SDCL 10-45-2 (codified law, current version) (accessed October 10, 2026)
The Legislative Research Council's site serves a second version of SDCL 10-45-2 labelled Effective July 1, 2027 in which the tax is four and one-half percent, citing SL 2023 ch 32 sections 1 and 19.
South Dakota Legislative Research Council: SDCL 10-45-2 (version effective July 1, 2027) (accessed October 10, 2026)
The Department's July 2026 Sales and Use Tax Guide lists the state sales and use tax at 4.2 percent and the municipal sales and use tax at 1 to 2 percent, and its Remote Seller Bulletin says state and municipal taxes are reported and paid on the same sales tax return.
South Dakota Department of Revenue: Sales and Use Tax Guide (July 2026) (accessed October 10, 2026)
The Department's sales tax page says that as of March 1, 2019 marketplace providers have been required to license their business and remit applicable sales tax on all sales they facilitate into South Dakota.
South Dakota Department of Revenue: Sales and Use Tax (accessed October 10, 2026)
The City of Sturgis' rally site lists the 87th Sturgis Motorcycle Rally for August 6th to August 15th, 2027 and the 88th for August 4th to August 13th, 2028.
City of Sturgis: Sturgis Motorcycle Rally, Dates (accessed October 10, 2026)
The state Game, Fish and Parks page for the annual Custer State Park Buffalo Roundup lists the 2026 roundup for September 25, 2026, starting at 9:30 a.m. Mountain time, describes a herd of approximately 1,300 buffalo, and lists no 2027 date.
South Dakota Game, Fish and Parks: Custer State Park Buffalo Roundup (accessed October 10, 2026)
Shopify's Help Center says the minimum purchase amount for a Buy X get Y discount counts product prices only, so shipping costs and taxes are never included in the amount, and that products count at their full price before any other discount is applied.
Shopify Help Center: Buy X get Y discounts (accessed October 10, 2026)
South Dakota has 75,811 square miles of land area.
U.S. Census Bureau: State Area Measurements (2010) (accessed October 10, 2026)
The Census Bureau's Vintage 2025 estimate puts South Dakota's resident population at 935,094 on July 1, 2025, up from the April 2020 estimates base of 886,656.
U.S. Census Bureau: Vintage 2025 state population estimates (accessed October 10, 2026)
In the 2020 Census urban and rural file, 379,320 of South Dakota's 886,667 residents lived in rural areas, which is 42.8 percent.
U.S. Census Bureau: State urban and rural population, 2020 and 2010 (accessed October 10, 2026)
Not tax advice. Confirm current rules with the state revenue department before you rely on a date or an exemption.
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