It's both bad news and good news for South Dakotans.
Governor Dennis Daugaard announced in his State of the State address that revenues have not strengthened since December's budget address.
He says that puts us down about $5.8 million dollars... still attributing the revenue loss to the farm economy and the growth in online sales in our state, meaning online retailers are benefiting from sales and the Mount Rushmore state isn't.
But that takes us to what Daugaard says is good news... he says the state has reached an agreement with Internet giant, Amazon.
The website has agreed to voluntarily start collecting sales tax for the state of South Dakota.
Gov. Daugaard says, "Amazon is known as a leading online retailer. Their decision doesn't solve the sales tax issue, but it's a big step in the right direction."
The deal begins February 1st. In his address,, Daugaard also spoke of the success he says he has seen come out of the sales tax increase for education last year. He says the average teacher salary for South Dakota now sits at nearly $47,000. Last year the average was about $40,000.