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. Unfortunately, state lawmakers are now considering Senate Bill 86 to try to address that. SB86 is the wrong solution.
SB86 does not clarify how often the $20 million in online sales tax would be measured. SB86 also says the sales tax rate could be reduced by introducing a separate bill.
The measure’s vague language doesn’t ensure the reduction will ever happen.
That’s not good enough. Send lawmakers a message, telling them that SB86 is not the answer!