The US Supreme Court has ruled in South Dakota’s favor in an online sales tax collection case, so South Dakota vs. Overstock, Wayfair and Newegg is coming back to the state’s court system.
Meanwhile, Gov. Dennis Daugaard says the two sides involved in a lawsuit over a legislation passed by the South Dakota Legislature in 2016 requiring certain businesses to collect and remit sales taxes to the state are working out a deal.
Daugaard says currently only about ten percent of taxable goods sold in America are sold over the internet so online sales tax collections from out-of-state retailers are not going to give South Dakota a huge windfall of cash.
The governor says if online sales tax collections reach $20-million, the sales tax charged in the state will decrease slightly.
He says online mega retailer Amazon already voluntarily submits sales taxes to South Dakota on purchases of its products.
While negotiations between the two sides are ongoing, Daugaard says the state Supreme Court may take up the case or it may remand South Dakota vs. Overstock, Wayfair and Newegg back to Circuit Court for an examination of any factual questions that remain.
