Bill > SB106

This bill requires remote sellers, meaning businesses that sell goods or digital products and services into South Dakota but do not have a physical presence there, to collect and remit sales taxes if they meet certain thresholds in a calendar year: either their gross revenue from sales into South Dakota exceeds $100,000, or they have 200 or more separate transactions for delivery into South Dakota. The bill also allows the state to file a declaratory judgment action to establish the validity of this tax obligation, which will be prioritized in court and has specific limitations on discovery and attorney's fees. Importantly, the filing of such an action acts as an injunction, preventing the state from enforcing the tax against a taxpayer unless they voluntarily comply or a court has already ruled on the matter for that specific taxpayer, and any obligation to remit taxes under this bill will not be applied retroactively. The Legislature has declared an emergency, finding that the inability to collect these taxes from remote sellers is causing significant revenue loss and harm to state services, especially since South Dakota does not have an income tax, and that modern technology makes it feasible for remote sellers to collect these taxes.