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.

Georgia Exempts Supplies Used in Plying the High Seas

Friday, February 23rd, 2018 -The Georgia Department of Revenue recently released a ruling that consumable supplies used by a marine transpo...

Certain Purchases from Pawnbrokers Not Taxable in...

Thursday, February 22nd, 2018 -Certain Purchases from Pawnbrokers Not Taxable in California The California Department of Tax and Fee ...

Colorado Waives Penalties for Notice and Reporting...

Monday, February 19th, 2018 -The Colorado Department of Revenue (DOR) released a publication stating that it has agreed to waive penalties ...

Maryland Sales Tax Holiday for Energy Efficient...

Friday, February 16th, 2018 -The Maryland sales tax holiday for energy efficient appliances runs from Saturday, February 17, 2018, at 12:01...

Dental Prostheses Exempt in Michigan

Wednesday, February 14th, 2018 -The Michigan Department of Treasury recently released a publication describing the retroactive exemption for d...

Taxability of Amusement Devices and Video Games in...

Monday, February 12th, 2018 -The Wisconsin Department of Revenue has released guidance addressing the taxability of video games and amuseme...