- All gross sales, both taxable and exempt
- Electronically transferred products and services delivered into South Dakota
- Sales made through a registered marketplace facilitator still count toward the remote seller's own threshold
- South Dakota does not publish an explicit exclusion list. Because the threshold includes exempt transactions, sellers whose products are primarily exempt should still monitor gross revenue carefully.
Affiliate Nexus
South Dakota's affiliate nexus provisions are codified in SDCL Chapter 10-45, which defines when an out-of-state retailer is considered engaged in business in the state. A remote seller meets that standard if it holds a substantial ownership interest of more than 10% equity in an in-state entity and satisfies at least one of three additional conditions: it sells the same or substantially similar product line under the same business name as that in-state retailer; it has a related in-state entity with a distribution or warehouse facility that delivers goods to South Dakota consumers; or it contracts with an in-state entity to provide installation, maintenance, or repair services for South Dakota customers.
South Dakota also applies a rebuttable controlled-group presumption: if any member of a seller's controlled group already has nexus in South Dakota, all other members of that controlled group are presumed to have nexus as well. This presumption can be rebutted with sufficient contrary evidence. South Dakota has no standalone click-through nexus statute.
Physical Nexus
Any physical presence in South Dakota creates nexus immediately, regardless of sales volume. Under SDCL Chapter 10-45, nexus-creating activities include maintaining a retail store, office, warehouse, or any other place of business in the state; holding leased or owned real property; employing a salesperson, agent, or independent contractor who solicits orders in South Dakota; making deliveries into the state using company-owned vehicles rather than a common carrier or U.S. mail; and storing inventory in a South Dakota third-party warehouse, including fulfillment through Amazon FBA with no safe harbor.
Exhibiting or soliciting at a trade show in South Dakota also creates physical nexus. Attending a trade show solely as a non-selling spectator does not. A South Dakota-based employee who is not involved in making sales does not independently trigger physical nexus.
Trailing Nexus
South Dakota has no formally published trailing nexus policy. When a seller closes South Dakota operations or falls below the $100,000 annual threshold, the state has not codified a defined period during which nexus continues after the triggering condition ends.
