PIERRE, S.D. (AP) – South Dakota would start collecting sales tax from many out-of-state internet retailers this fall under a bill the Legislature’s budget-writing committee has endorsed ahead of a special legislative session this week.
The Interim Joint Committee on Appropriations voted unanimously Tuesday to recommend Gov. Dennis Daugaard’s legislation, which would allow the collections to start Nov. 1. Republican Sen. Deb Peters urged support, saying it’s time to “get moving and going forward.”
A second bill the panel voted 15-3 to endorse would require marketplaces that handle payments such as eBay to collect sales taxes for sellers on their platforms.
Lawmakers gather Wednesday for the special session. It comes after a recent U.S. Supreme Court ruling in South Dakota’s favor that opened the door for consumers to see sales tax on more online purchases from out-of-state companies.
