State statute calls for reducing the sales tax rate based on how much revenue is brought in from online sales taxes. But lawmakers are considering overturning this statute to keep the sales tax at 4.5 percent. That’s just wrong.
When lawmakers raised the sales tax rate from 4 to 4.5 percent in 2016, an amendment was included. It explicitly said that if the U.S. Supreme Court ruled in favor of allowing states to collect online sales taxes, South Dakota would have to reduce the sales tax rate by .1 percentage points for every $20 million raised from online sales taxes.
Lawmakers must fulfill the deal made with taxpayers by passing legislation affirming that the sales tax rate should be reduced.
Contact your lawmakers today and urge them to fulfill the deal!