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South Dakota Corporate Tax Exemption

 

STEPS TO APPLYING FOR TAX EXEMPTION IN SOUTH DAKOTA

Is my South Dakota non-profit corporation eligible for any state tax exemptions?

Possibly. South Dakota doesn’t have a state corporate tax. But an SD nonprofit corporation could qualify for sales and use tax exemption.

How does a South Dakota non-profit qualify for a sales and use tax exemption?

South Dakota is extremely picky about what entities qualify for a sales and use tax exemption, and how a nonprofit qualifies is somewhat complicated. First, the nonprofit must be deemed a SD nonprofit corporation will be mailed a permit that the organization can use when purchasing items for the organization to avoid paying sales tax.

Do any other South Dakota organizations qualify for sales tax exemptions?

Yes. They are as follows:

  • Government entities.
  • Nonprofit hospitals.
  • 501c3 religious and educational organizations.
  • Agricultural products and services.

For any of the entities above to qualify for the exemption, they must file an Exemption Certificate with the South Dakota Department of Revenue and Regulation.

South Dakota tax contact info:

South Dakota Department of Revenue and Regulation
445 E. Capitol Avenue
Pierre, SD 57501-3185
Phone: 1-800-TAX-9188
Website: www.dor.sd.gov

Additional Resources:

South Dakota Taxes

This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.

This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation. 

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