An Analysis of the South Dakota Retail Sales Tax

The overall objective of the study was to analyze the structure and adequacy of the South Dakota retail sales tax. The following specific objectives guided the research. 1. To analyze the tax structure of the State of South Dakota and the revenue and expenditure patterns of the state over the past 10 years as an indication of the overall adequacy of the tax structure. 2. To examine the characteristics of the South Dakota sales and use tax with emphasis on the tax base. 3. To examine the sales tax in relation to principles of tax equity. 4. To estimate the income elasticity of the sales and use tax to serve as an indication of sales and use tax adequacy. 5. To analyze structural changes in the base of the tax as to their effect on adequacy and equity. 6. To project sales and use tax revenue on the basis of the method used to estimate income elasticity