With South Dakota’s sales tax going up from 4 percent to 4.5 percent in June, out-of-state sellers have an advantage. Even before the law went into effect Sunday, it prompted two lawsuits.

The state has taken three large-scale companies operating outside South Dakota law to court, saying they're required to remit the 4-percent to 6.5-percent sales tax from the state's buyers.

The South Dakota law "applies to out-of-state retailers if they have more than $100,000 in sales or complete more than 200 transactions per year within South Dakota," Jackley's statement noted.

In 2016, South Dakota lawmakers passed a law requiring out-of-state sellers to collect and turn over sales tax to the state. The state's highest court struck down the law, citing previous Supreme ...

Enter South Dakota, which passed a law in 2016 requiring most out-of-state retailers to pay the state's 4.5% sales tax and up to 2% more in cities even if they have no physical presence in the state.

Three identical bills were filed during the special session to match Louisiana’s law with South Dakota’s in case the U.S. Supreme Court allows states to start collecting sales taxes on ...

The case the court ruled on involved a 2016 law passed by South Dakota, which said it was losing out on an estimated $50 million a year in sales tax not collected by out-of-state sellers.

A South Dakota law requiring larger, out-of-state internet sellers to collect sales tax to the state has been upheld by the U.S. Supreme Court.

The U.S. Supreme Court agreed last week to take up a case that would overturn a 1992 decision exempting retailers with no physical presence in a state from collecting state sales tax.

Explore South Dakota's 2025 state tax rates for income, sales, property, retirement, and more. Learn how South Dakota compares nationwide.

This story is reported by South Dakota News Watch, a non-profit news organization. Find more in-depth reporting at www.sdnewswatch.org. Charging sales tax on food purchases is regressive by nature ...