Daugaard signs into law online sales tax bills

Governor Dennis Daugaard has signed into law a measure allowing South Dakota to collect sales taxes from many out-of-state online retailers starting November 1st.

The governor Wednesday also signed a law to require marketplaces that handle payments, such as eBay, to collect sales taxes for sellers on their platforms.

Lawmakers easily passed the bills Wednesday as part of a special legislative session. The special session came after a June U.S. Supreme Court ruling in South Dakota’s favor that opened the door for consumers to see sales tax on more online purchases from out-of-state companies.

Daugaard addressed legislators at the start of the special session and explained what Senate Bill One establishes.


A second bill, Senate Bill-2, provides for tax collection from marketplace sellers.  Daugaard says it has been a long legal battle.


The governor also signed into law an unrelated third bill on the timing of the new governor’s inauguration in January.

(Thanks in part, WNAX)