South Dakota Court Strikes Down Economic Nexus Law

Friday, March 10th, 2017

 
 
Mount Rushmore.
Share
Link
South Dakota
General

A South Dakota circuit court recently ruled against a law seeking to extend the reach of the state's sales tax. The law required out-of-state sellers meeting certain requirements to collect and remit sales tax.

As written, the law required out-of-state sellers to collect and remit sales tax if the sellers (1) made sales of $100,000 or more in South Dakota or (2) made 200 or more separate transactions in South Dakota.

The ruling against this law relies on a United States Supreme Court case known as Quill. According to Quill, a state may only require a seller to collect and remit sales tax if the seller has a physical presence in the state.

According to ruling, the requirements set forth in the law violate the physical presence requirement of Quill. The court therefore struck down the law. The state plans to appeal this ruling to the South Dakota Supreme Court.

href="http://dor.sd.gov/Taxes/Business_Taxes/SB106.aspx


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...