State details next steps after online sales tax ruling
July 27, 2018
This piece was submitted by the Sioux Falls Area Chamber of Commerce.
Gov. Dennis Daugaard might call a special legislative session following the recent U.S. Supreme Court decision of South Dakota v. Wayfair.
The governor’s chief of staff, Tony Venhuizen, said Daugaard has informed legislative leaders that a special session might be needed to expedite the ruling’s implementation.
Venhuizen discussed the Wayfair ruling Wednesday with the Legislature’s budget-writing committee. South Dakota currently can’t enforce its requirement that out-of-state retailers collect sales taxes as state-level legal proceedings continue.
In addition, state law requires that a 2016 sales tax hike for teacher pay be scaled back if the state is able to collect tax on the online purchases. This was enacted as part of a compromise to fund teacher pay, which helped to secure the vote for passage. However, post-Wayfair, the law needs to be revisited to clarify how it should be implemented.
Venhuizen detailed what’s next and what the ruling means for South Dakota in this podcast through the Sioux Falls Area Chamber of Commerce.
