The South Dakota Retailers Association is welcoming a summary judgment from Circuit Court Judge Mark Barnett regarding the state’s lawsuit against three large online retailers. The retailers group says the ruling was needed to move South Dakota one step closer to tax parity between South Dakota brick and mortar stores and giant out-of-state companies. And, although Barnett’s ruling favored out-of-state online retailers, it will help move the issue to the next level towards a U-S Supreme Court reconsideration of what South Dakota retailers say are outdated laws. Earlier, Amazon said they would begin collecting the state sales tax, however not every sale will be taxable says Watertown State Representative Hugh Bartels who serves on the House Appropriations Committee
Bartels says he understands why people like shopping online because of convenience, however he’s quick to point out that no sales tax dollars in means no sales tax dollars out for the state of South Dakota
The state’s lawsuit was filed one year after U-S Supreme Court Justice Anthony Kennedy recognized in his opinion that the internet is making far-reaching systemic and structural changes in the economy. In his opinion he called on the legal system to find an appropriate case for the Supreme Court to reconsider its prior decisions that were made in 1967 and 1992 favoring internet businesses. South Dakota’s retail community is hopeful the ruling will eventually help move the issue back to the U-S Supreme Court for reconsideration.
(KXLG)