Governor Might Call Special Session Over Sales Tax Ruling

Governor Dennis Daugaard 2

South Dakota Gov. Dennis Daugaard might call a special legislative session after a recent U.S. Supreme Court ruling in the state’s favor that could yield millions of dollars in online sales taxes.
Governor Chief of Staff Tony Venhuizen says in an email that Daugaard has informed legislative leaders a special session might be needed to expedite the ruling’s implementation.
Venhuizen was to discuss the high court ruling Wednesday with the Legislature’s budget-writing committee. South Dakota currently can’t enforce its requirement that out-of-state retailers collect sales taxes as state-level legal proceedings continue.
State law requires a 2016 sales tax hike for teacher pay be scaled back if the state is able to collect tax on the online purchases. South Dakota has estimated it loses about $50 million annually to e-commerce.

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