South Dakota – Online Sales Tax Law Passed

SALT Report 3800 – South Dakota customers of the online package-a-month service Birchbox got an unwelcome email notice this week: They’ll be paying state taxes on their purchases from now on.

The company apologized for “any inconvenience this may cause” and said it was sending the email to “clarify the difference you may notice in any upcoming charge.”

It’s unknown exactly how many online retailers will send similar messages in coming weeks, but there’s a long list of potential candidates.

The South Dakota Department of Revenue sent letters to a list of online businesses this month to inform them of the impending effect of Senate Bill 106, a law designed to help the state collect sales taxes from retailers without a physical presence in the state.

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