The Supreme Court rules online sellers can be forced to charge sales tax in a 5-4 ruling Thursday [July 21, 2018].
The cases the court overturned said that if a business was shipping a product to a state where it didn’t have a physical presence such as a warehouse or office, it didn’t have to collect the state’s sales tax.
South Dakota Senate Bill 106 requires remote sellers with no physical location in South Dakota to remit sales tax and follow all procedures of the law as if they have a presence in the state if they meet one of two criteria in the previous calendar year or the current calendar year.
- The remote seller’s gross revenue of sale of tangible property, any products transferred electronically, or services delivered into South Dakota exceeds $100,000
- The remote seller has 200 or more separate transactions tangible property, any products transferred electronically, or services delivered into South Dakota.
Other states will more than likely enact laws to take advantage of the decision.
