Daugaard signs bill to start collecting internet sales tax

PIERRE, S.D. (KEVN) - Gov. Dennis Daugaard Wednesday signed into law a measure to allow South Dakota to collect internet sales tax. The law goes into effect Nov. 1.

Gov. Dennis Daugaard signs Senate Bill 1 into law Wednesday in Pierre. The new law allows South Dakota to collect online sales tax beginning Nov. 1. (photo courtesy state of South Dakota)

Senate Bill 1 is the byproduct of the state’s successful efforts via the U.S. Supreme Court to begin collecting online sales tax.

The state will be able to enforce sales tax collections from those who meet the $100,000 in sales or 200 transaction threshold, according to a release from the governor’s office.

“This has been more than 50 years in the making,” Daugaard said. “We have finally succeeded in leveling the playing field for all who do business in our state – and we have paved the way for any other state that wishes to pursue tax uniformity.”

Daugaard convened the Legislature Wednesday for a special session to consider Senate Bill 1 as well as Senate Bill 2 and House Bill 1001. All three bills received legislative approval and were signed by the governor.

SB 2 requires marketplace providers to attain a sales tax license and remit sales tax on behalf of sellers utilizing their services.

HB 1001 clarifies the start date of the next governor to allow for a clear transfer of authority in January.