PIERRE, S.D. (AP) – South Dakota residents may see lower sales tax rates because of a provision in state law passed years ahead of a U.S. Supreme Court decision allowing states to make online shoppers pay it.
Thursday’s ruling opens the door for eventual reductions in the state sales tax rate that were built into a half-cent sales tax hike for teacher pay.
The 2016 education law boosted the rate from 4 percent to 4.5 percent. But it requires the increase to be scaled back if the state can collect sales tax from out-of-state online retailers.
South Dakota sued several online retailers in 2016 based on a separate state law seeking to get them to collect the tax. The Supreme Court ruled Thursday in the state’s favor.
