South Dakota Supreme Court Affirms Ban on Taxing Remote Sellers

On September 13, the South Dakota Supreme Court affirmed a lower court decision limiting the ability of the state to tax e-commerce sellers. This decision continues the prohibition against enforcing SB 106 – the South Dakota “economic nexus” law which imposes a sales tax collection and remittance duty on out-of-state sellers based solely on their economic presence (as measured by sales to in-state customers) as opposed to their physical presence. This decision was entirely expected and serves as the necessary next step for the case to ultimately find its way to the US Supreme Court.