Monday, December 2, 2013

Collection Allowance - Starting January 1, 2014

Would you like to receive an allowance for paying your taxes?  Then, sign-up for a Collection Allowance starting January 1, 2014.  The collection allowance applies to all taxes reported on the sales tax return form including sales tax, use tax, tourism tax, municipal sales taxes, telecommunications gross receipts tax, excise tax on farm machinery, amusement device tax, motor vehicle leasing tax, intermediate care facility tax, Sioux Falls lodging tax and tax collection agreement taxes.

  • You will have to file and pay your sales tax returns electronically and on time to receive this.

  • The Allowance is 1.5% of the tax due, not to exceed $70 for each reporting period.

  • Allowances are not given on Contractors' Excise Tax returns.

  • No Allowance for licensees that are past due on:  Sales Tax, Contractors' Excise Tax, Motor Fuel Tax, or 911 Surcharge account, or that file paper returns.
Find out more information about electronic tax filing here.
Licensees who have outstanding tax returns, who have outstanding tax balances due to the Department or those that do not file and pay electronically will not receive the allowance. In addition, the allowance does not apply to contractors’ excise tax returns.

Do you have questions on electronic tax return filing or the collection allowance credit? Contact the South Dakota Department of Revenue at or call 800-829-9188.