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.
About the Author
Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.More Content by Erik Wallin