Terwilliger said the 2019 budget didn’t reflect any additional sales and use tax revenue from remote sellers and marketplaces that use the Internet to sell products and services to South Dakota.
The state law requiring remote sellers to report their South Dakota activities started in December, while the law requiring third-party marketplace sales took effect in March.
“I think it’s important to look at that sales tax a little bit more,” Terwilliger told lawmakers. He said there remains “a lot of uncertainty” about what’s happening as customers shift their purchases from local businesses to online.
“Consumers are changing their spending habits extremely fast,” Terwilliger said. “It’s shifting. It’s shifting very fast in front of our eyes.”
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