Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for South Dakota.

February 24, 2026

South Dakota Eliminates Bank Franchise Tax Adjustments for Bad Debts

Authored by: Brian Meier, MSA and Katie Nguyen, CPA

South Dakota has enacted legislation removing several long standing adjustments related to bad debt deductions under the state’s bank franchise tax regime. The new law disallows prior income modifications that required addbacks or subtractions when bad debts were written off, recovered, or recalculated due to a change in federal methods. By eliminating these adjustments, the state aims to simplify tax reporting and streamline conformity with federal treatment of bad debts for affected financial institutions.

If you have questions about state bad debt adjustments, consult Withum’s SALT Team to evaluate your next steps.

December 17, 2024

South Dakota Governor Proposal to Eliminate E-filing Incentive and Grocery Tax

Authored by: Breea Boylan, MSA, CPA and Courtney Easterday, MSA

South Dakota Governor Kristi Noem’s budget lays out proposals for the remainder of fiscal year 2025 and fiscal year 2026. The Governor proposed to eliminate the incentive for businesses to electronically file sales tax returns as the electronic filing process has become the general business practice, and thus the incentive is no longer necessary. The Governor also proposes a permanent elimination on the groceries sales tax.

If you have questions about state sales tax compliance and taxability, please reach out to a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.