The president of the board of directors for a South Dakota retailers organization says the US Supreme Court’s decision to hear the state’s lawsuit over online tax fairness is great news for the state’s retailers.
Gary Cammack of Union Center says the South Dakota Retailers Association believes out-of-state companies should be playing by the same tax rules as in-state retailers. He says for brick and mortar retailers in the state, it’s about leveling the playing field when compared to online only retailers.
The State of South Dakota is funded largely by sales tax dollars so Cammack says the lost revenue due to the loophole that currently exists strains the state’s budget. He says receiving the online tax revenue—estimated at $50 million dollars annually–would make a difference.
Under the Quill v. North Dakota US Supreme Court decision issued more than a quarter century ago, a state can’t require out-of-state companies to charge sales tax on purchases shipped into a state, unless the company has a physical presence in that state. If South Dakota wins its case against Wayfair, Overstock and Newegg, the Quill decision would be overturned.