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The Latest: Daugaard signs into law online sales tax bills

September 12, 2018

PIERRE, S.D. (AP) — The Latest on South Dakota’s online sales tax special legislative session (all times local):

4 p.m.

Gov. Dennis Daugaard has signed into law a measure allowing South Dakota to collect sales taxes from many out-of-state online retailers starting Nov. 1.

The Republican governor on Wednesday also signed a law to require marketplaces that handle payments, such as eBay, to collect sales taxes for sellers on their platforms.

Lawmakers easily passed the bills earlier that day as part of a special legislative session. Daugaard had urged support for the measures in a speech to lawmakers.

The special session came after a June U.S. Supreme Court ruling in South Dakota’s favor that opened the door for consumers to see sales tax on more online purchases from out-of-state companies.

The governor also signed into law an unrelated third bill on the timing of the new governor’s inauguration in January.

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2:58 p.m.

South Dakota will start collecting sales taxes from many out-of-state internet retailers this fall under a bill approved by the Legislature.

Lawmakers voted overwhelmingly Wednesday during a special session to support Gov. Dennis Daugaard’s measure, which would allow the collections to start Nov. 1.

A second bill that passed would require marketplaces that handle payments such as eBay to collect sales taxes for sellers on their platforms.

Daugaard urged support, saying the bills are the culmination of the fight South Dakota has led for “tax fairness.” Republican Sen. Stace Nelson, an opponent, says South Dakotans are taxed enough already.

The special session comes after a June U.S. Supreme Court ruling in South Dakota’s favor that opened the door for consumers to see sales tax on more online purchases from out-of-state companies.

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8:16 a.m.

South Dakota lawmakers are gathering for a special legislative session to allow the state to start collecting sales taxes from many out-of-state internet retailers this fall.

Lawmakers gather Wednesday to consider Gov. Dennis Daugaard’s legislation, which would allow the collections to start Nov. 1.

A second special session bill would require marketplaces that handle payments such as eBay to collect sales taxes for sellers on their platforms. The Legislature’s budget-writing committee endorsed the measures ahead of the special session.

It comes after a recent U.S. Supreme Court ruling in South Dakota’s favor that opened the door for consumers to see sales tax on more online purchases from out-of-state companies.

Lawmakers during the session will also debate an unrelated third bill on the timing of the new governor’s inauguration in January.

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