PIERRE, S.D. (KELO.com) The South Dakota State Supreme Court has ruled that out-of-state online retailers can't be forced to collect state sales tax, and the state is actually happy about it.
Attorney General Marty Jackley says the ruling means that the U.S. Supreme Court can now more quickly get the case. Jackley says it's really federal law that's the problem, anyway.
The Governor's Office also says it appreciates the decision.
South Dakota and other states are losing millions in tax revenue from increasing sales on the internet.
The South Dakota case stems from a law passed by the 2016 State Legislature to require most out-of-state online retailers to collect and remit taxes just as in-state retailers do.
"Significantly, the Court’s swift decision recognizes that “as internet sales have risen, state revenues have decreased.” The Court further highlighted the need for the U.S. Supreme Court to revisit this issue, allowing states to require internet retailers to shoulder the same tax burden as in-state retailers do. “ says Jackley.
It's unclear just when the U.S. Supreme Court might take up the broader case, and, obviously, what any eventual ruling would be. Whatever happens, it will likely have national implications because of ever-growing retail sales on the Internet.