Sales tax trends are being watched carefully across the state, especially as online sales are now added to the mix. Fiscal year 2019 ended with an increase in taxes but fell below estimates.
Nathan Sanderson, Executive Director of the South Dakota Retailers Association, says issues with agriculture are reflected quickly in retail sales.
The first few months of online retail sales were included in the year end reports. Sanderson says it’s hard to connect those dots.
Sanderson says it will take some time to see how online sales impact taxes.
Early estimates were that the state could see thirty to forty million dollars in online sales taxes. The reports so far are well below that.