2016 Senate Bill 106

Remote Seller Compliance

On March 22, 2016, Governor Dennis Daugaard signed SB 106 into law, which went into effect May 1, 2016.

SB 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.

  1. The remote seller's gross revenue of sale of tangible property, any products transferred electronically, or services delivered into South Dakota exceeds $100,000
  2. The remote seller has 200 or more separate transactions tangible property, any products transferred electronically, or services delivered into South Dakota.

Click here to read the bill in its entirety

Click here for more information on SB 106

If your company meets one or both of requirements of this bill and you do not currently have a business tax license with the State of South Dakota, you will need to complete an application, which can be found at https://apps.sd.gov/rv23cedar/main/main.aspx.

Once you have submitted your application or if you have any other questions regarding Senate Bill 106, you can contact Kathy Smith by phone at (605) 773.3311(605) 773.3311 or by email at Kathy.smith@state.sd.us and she will assist you.


South Dakota files a declaratory judgment action

Pursuant to 2016 Senate Bill 106, the State of South Dakota filed a declaratory judgment action in the Sixth Judicial Circuit Court, Hughes County, South Dakota, Civil No. 32 Civ. 16-92, on April 28, 2016. 

As a result of the filing, the automatic injunction of Section 3 of Senate Bill 106 now applies.  Section 3 states:  “The filing of the declaratory judgment action established in this Act by the state operates as an injunction during the pendency of the action, applicable to each state entity, prohibiting any state entity from enforcing the obligation in section 1 of this Act against any taxpayer who does not affirmatively consent or otherwise remit the sales tax on a voluntary basis.”

Pending Litigation



State of South Dakota,

Plaintiff

v.

Wayfair INC., Systemax INC., Overstock.com INC., and Newegg INC.,

Defendants.

32Civ16-000092

Venue:   State of South Dakota, County of Hughes, In Circuit Court, Sixth Judicial Court


American Catalog Mailers Association and Netchoice,

Plaintiffs

vs.

Andy Gerlach, in his capacity as the Secretary of the South Dakota Department of Revenue,

Defendant.

32Civ16-000096

Venue:   State of South Dakota, County of Hughes, In Circuit Court, Sixth Judicial Court


State of South Dakota,

Plaintiff

v.

Wayfair INC., Overstock.com INC., and Newegg INC.,

Defendants.

Civ.No. 16-3019


Venue:   United States District Court, For the District of South Dakota, Central Division

 

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