Department of Revenue taking next steps after U.S. Supreme Court decision

“The U.S. Supreme Court’s June 21 decision was monumental for the State of South Dakota and Main Street businesses throughout the nation,” Department of Revenue Secretary Andy Gerlach said.

While the U.S. Supreme Court’s decision was in South Dakota’s favor, a State Circuit Court injunction prevents immediate implementation of a 2016 law which requires online sellers without a physical presence in South Dakota to collect and remit sales tax. Because the U.S. Supreme Court set aside the previous decision of the South Dakota Supreme Court, the case will return to the South Dakota court system for further legal proceedings.

The Department of Revenue expects that the U.S. Supreme Court will formally send its decision to the South Dakota Supreme Court in mid-July. The case will return to the State Circuit Court with the possibility for an August decision.

As the State of South Dakota prepares to implement the 2016 law, the Department of Revenue will continue to be a resource for both out-of-state and in-state businesses.

“The South Dakota Department of Revenue will work in partnership with the business community to ensure a smooth implementation of this decision,” Gerlach said. “While it may take several months for litigation to conclude, we will continue to communicate with our current and future taxpayers on implementation.”

The Department of Revenue will provide further updates on this topic online at sd.gov/remoteseller. Interested parties may also sign up to receive email updates at the webpage.