South Dakota DOR Clarifies Sales Tax on Shipping and Transportation Charges

The South Dakota Department of Revenue (DOR) has published a tax fact sheet explaining when shipping and transportation charges are subject to sales and use tax in the state. The publication clarifies that retailers’ charges for delivery and handling of taxable products are subject to the state sales tax and applicable municipal sales taxes when delivered within the state. Delivery charges for non-taxable products remain exempt from taxation. The publication also details how to calculate the taxable portion of delivery charges for mixed shipments containing both taxable and non-taxable items and provides specific rules for various transportation services, including moving ...