Home – SD to Finally Begin Collecting Remote Sales Taxes

SD to Finally Begin Collecting Remote Sales Taxes

Nearly three months after winning approval from the U.S. Supreme Court to collect sales taxes from out-of-state sellers that do substantial business in the state, South Dakota will finally start doing so in November.


Despite the favorable SCOTUS ruling in South Dakota v. Wayfair in June, the state has been blocked from enforcing its 2016 law (SB 106) making out-of-state sellers with over $100,000 in sales or 200 or more transactions in the state subject to the state’s sales tax by a state court injunction.


But under a bill (SB 1 a) passed in special session and signed into law last week by Gov. Dennis Daugaard (R), that injunction will be lifted - the companies involved in the case will be exempted from the state’s remote sales tax requirements, pending further legal proceedings - and the state will begin enforcing SB 106, in accordance with the Wayfair decision, on Nov. 1, before the start of the busy holiday season.


“Today we are able to implement that win and turn it into a better law for South Dakota, a better even playing field for those doing business in their home communities, who have stores and have been paying property taxes and sales taxes all these years now won’t have unfair competition from online,” the governor said. (For more on this issue see last week’s Cap J spotlight story.) (KSFY [SIOUX FALLS], ABC NEWS)