Sioux Falls sales tax collections exceeding expectations

December 25, 2018

SIOUX FALLS, S.D. (AP) — Sales tax revenues in Sioux Falls are coming in higher than city officials anticipated for 2018, potentially helped by online sales tax collections.

Former Mayor Mike Huether and city councilors projected sales tax growth of 1 percent when they set this year’s budget in late 2017, the Argus Leader reported . But Mayor Paul TenHaken’s finance director, Shawn Pritchett, said the city is likely to close the year with a sales tax growth rate above 4 percent.

Collections jumped 9 percent in November compared to that month in 2017. Pritchett credited some of November’s boost to online sales tax collections that started this fall.

“We’ll be watching and tracking that very closely,” he said.

It was ultimately South Dakota’s case that led to the U.S. Supreme Court’s decision in June to overturn two decades-old high court decisions that made it tougher for states to collect sales taxes for certain purchases online. The state began collections Nov. 1.

Some retailers had been voluntarily remitting the taxes. The state’s sales tax obligation applies to sellers outside the state who do more than $100,000 of business in South Dakota or more than 200 transactions annually with state residents under a law passed in 2016.


Information from: Argus Leader, http://www.argusleader.com

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