Panel Endorses Bills For Online Sales Tax Special Session

South Dakota would start collecting sales taxes from many out-of-state internet retailers this fall under a bill the Legislature’s budget-writing committee endorsed Tuesday ahead of this week’s special legislative session to implement a U.S. Supreme Court ruling that cleared the way for the changes.

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Lawmakers gather Wednesday at the Capitol for the special session to consider Gov. Dennis Daugaard’s legislation, which would allow the collections to start Nov. 1. A second bill the panel recommended would require marketplaces that handle payments such as eBay to collect sales taxes for sellers on their platforms.

“After working with the Department of Revenue and consulting with legislative leaders, I am proposing two bills that will allow the state of South Dakota to benefit from the national tax fairness victory that we led,” Daugaard said in an earlier statement announcing the measures.