In an unexpected turn of events last week, the Governor of South Dakota signed a bill into law which re-enacted the enforcement of sales tax collections triggered by the Wayfair decision.
Although the Supreme Court previously ruled that the states were entitled to collect tax for online sales, some states such as South Dakota and Tennessee had individual cases which barred the collection from taking place. After much legislative and legal dispute, South Dakota has finally ruled in favor of collecting online sales taxes, and now joins the majority of states in complying with the landmark decision.
While South Dakota may not be a major source of sales for every online retailer, it is just another sign of the impact of the Wayfair ruling, and reinforces the fact that these new laws must be understood and followed. Frankly put, these laws aren’t going away. As noted previously, South Dakota, along with the other states, will now be requiring online retailers from across the country who sell products to customers in the state to remit sales taxes due to South Dakota, a responsibility which was previously unheard of. This can seem (rightfully so) like an overwhelming job for an online retailers, especially when the law is so new. Thankfully, the Advisory Services team at Roth & Company has been following Wayfair at every step, and has developed a thorough process for helping your online business continue to operate and grow, hassle free. For more information on how this may affect you, please contact your trusted advisor at Roth & Company.
