Sept. 12: Governor Calls Special Session to Address Implementation of Sales Tax on Remote Sellers

Sept. 12: Governor Calls Special Session to Address Implementation of Sales Tax on Remote Sellers

South Dakota Retailers Association  

News release issued by the Governor's Office on August 7, 2018:

Gov. Dennis Daugaard has called a special legislative session to consider legislation that would expedite implementation of the recent U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. and allow the state to enforce the obligation of remote sellers to collect and remit sales tax.

After consulting with legislative leaders from both political parties, the Governor is calling the special session for Wednesday, Sept. 12, 2018, at the State Capitol in Pierre.  

“South Dakota led the fight for tax fairness, which culminated with our historic win before the U.S. Supreme Court in June,” said Gov. Daugaard. “Thanks to that victory, other states are implementing tax changes as soon as Oct. 1, and I will be proposing legislation to allow South Dakota to join them.”

Draft legislation is currently being prepared by the South Dakota Department of Revenue, in consultation with the Attorney General’s office, and will be made available for review prior to the special session.

The following information is courtesy the South Dakota Department of Revenue:

Remote Sellers

The United States Supreme Court issued a decision June 21, 2018, which permits South Dakota to collect sales tax from remote sellers. The South Dakota Department of Revenue is committed to keeping an open dialogue with the business community as we implement this historic decision.

While the U.S. Supreme Court ruled in South Dakota's favor, the South Dakota Department of Revenue is currently unable to enforce 2016's remote seller law due to the State Circuit Court's injunction that is still in place. The U.S. Supreme Court’s decision set aside the South Dakota Supreme Court's decision and the case has returned to the South Dakota court system for further legal proceedings.

It is expected the injunction will soon be lifted, requiring sellers meeting certain thresholds of sales or transactions into South Dakota to get a sales tax license. The South Dakota Department of Revenue is partnering with other states and the business community to ensure the transition is as smooth as possible once the law takes effect.

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