Lawmakers Head Back To Pierre For Online Sales Tax Issue

Aug 7, 2018

Credit Melissa Hamersma Sievers / SDPB

Governor Dennis Daugaard is calling a special legislative session for the middle of September.

Lawmakers will consider legislation that allows the state to implement rules that require online vendors to collect and remit sales tax.

Governor Daugaard wants the legislature to consider legislation that expedites the implementation of a recent US Supreme Court decision South Dakota versus Wayfair.

Daugaard recently said the legislature may need to overturn an automatic injunction on collecting sales tax from online retailers if a lawsuit is ever brought. The state now has the green light from the country’s highest court, but the case is still tied up in the legal system.

According to a press release from the governor’s office, a draft bill is being prepared by the South Dakota Department of Revenue, along with the Attorney General’s office.

Attorney General Marty Jackley says the governor has indicated he wants rules that paves the way for the state to collect revenue.

“It’s more legislation to assist South Dakota on the collection side, not necessarily focused on how the legislature and governor are going to spend that money,” Jackley says. “So, it’s more of a collection issue, rather than a spending issue right now. But, it’s early. Obviously there are 105 legislators that are going to be having input in looking at this issue along with the governor’s office.”

The press release says a draft bill will come available for review prior to the special session.

Lawmakers will meet in Pierre on September 12.