E-Fairness Update: South Dakota Online Sales Tax Legislation
In March 2016, South Dakota enacted a law requiring out-of-state vendors to collect sales tax regardless of their physical presence in the state. The requirement applies to sales made on or after May 1, 2016. In late April, two lawsuits were filed regarding the law. In one, the State of South Dakota seeks a determination that its law is constitutional (which it expects to lose), and in the other, associations representing catalog marketers and e-commerce retailers seek a determination that South Dakota’s law is unconstitutional.