South Dakota Court Strikes Down Economic Nexus Law

Friday, March 10th, 2017

Mount Rushmore.
South Dakota

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.


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 or call 866.578.8193.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...