Online Sales Tax Begins

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Companies doing business online in South Dakota will now pay a sales tax. The change stems from a story we’ve been following for months.

Attorney General Marty Jackley argued in front of U.S. Supreme Court justices earlier this year that states were losing massive amounts of sales taxes needed for education, healthcare and infrastructure. 

In June, the Justices ruled in favor of South Dakota. 

Online shoppers will be the ones, in many cases, paying the difference now.  In South Dakota, it could add up to $50 million more per year.   

However, it’s not all online businesses.

This applies to out-of-state sellers who do more than $100,000 of business in South Dakota or more than 200 transactions annually with residents.

The state announced on Wednesday a settlement with three companies it sued in the case that brought the issue to the high court. Online retailers Wayfair, Overstock and Newegg will start collecting January 1st.
 
 

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