State and Local Tax (SALT) attorney Bruce Ely was quoted in Bloomberg BNA on South Dakota’s new sales tax law which would allow the state’s Department of Revenue to sue internet retailers. South Dakota’s legislation followed in the footsteps of Alabama’s economic nexus standard that requires out-of-state Internet or catalog vendors with at least $250,000 of annual in-state sales to collect and remit sales taxes.
Although Alabama’s rule took effect in January, South Dakota tax officials could become one of the first to litigate challenges to the new taxpayer assessment thanks to language in their statute that lets them bypass normal administrative procedures and take a case directly to court, Ely explained.
“They clearly want their statute to be tested quickly. They may leap-frog Alabama and at least reach the stage of seeking certiorari first,” Ely said. (In the meantime, South Dakota indeed has filed suit against four Internet vendors.)
The complete article, “South Dakota Can Sue Internet Retailers Under New Tax Law,” appeared in Bloomberg BNAon May 4, 2016. (login required)