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States and online retailers continue to battle over sales tax laws

SOUTH DAKOTA

Less than a year ago, we wrote about a taxing provision that South Dakota lawmakers passed in an effort to quell revenue losses attributable to out-of-state internet sellers who do not have enough of a connection, or nexus, with the state to be subject to sales tax collection and remittance obligations. That law, SB 106, effective May 1, 2016, set a threshold of $100,000 of in-state sales, or 200 separate transactions, above which an out-of-state retailer would be required to collect and remit sales taxes.