TAX 9866 Lecture Notes - Lecture 34: Overstock.Com, Wayfair, Newegg
Document Summary
Under bellas hess and quill, south dakota may not require a business to collect its sales tax if the business lacks a physical presence in the state. Instead, must rely on residents to pay the use tax owed on their purchases from out-of state sellers. Purchasers is really impractical// consumer compliance really low. Bc south dakota has no state income tax, it must put substantial reliance on sales. & use tax to fund essential services (account for 60% of its general fund) In 2016, south dakota addressed this inequity quill imposed by enaction s 106 (basically mandated collection of sales taxes from certain remote sellers) Act requires out of state sellers to collect/remit sales tax as if seller had physical presence in state . Applies only to sellers that on an annual basis deliver more than ,000 of goods/services or engage in 200 or more separate transactions for the delivery of goods or services into the state.
