South Dakota Updates Their Economic Nexus Threshold
The State of South Dakota has revised its economic nexus provisions. Effective July 1, 2023, the state is removing the "200 or more separate transactions" threshold from the law for out-of-state remote sellers.
Once effective, if out-of-state sellers exceed $100,000 in gross revenue in the previous or current calendar year in South Dakota, they will be required to follow "all applicable procedures and requirements of law as if the seller had a physical presence."
It is important to note that South Dakota did not state that this would be effective immediately, nor do they discuss a retroactive application effective July 1, 2023. While it is not determined if South Dakota will do this, in many instances, states still pursue companies for the periods prior to the new statutes using old states from the prior periods.