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Online Sales Tax Up $52M from Before 2018 Wayfair Ruling

Bob Mercer reads Revenue Department reports to break down the money South Dakota has made thanks to Marty Jackley’s successful 2018 liberal lawyering to expand South Dakota’s sales tax to apply to online vendors outside South Dakota:

Numbers from the department show collections from remote sellers totaled $56,387,783 in calendar 2017. For calendar 2018, they totaled $63,655,771, an increase of $7,267,988. For calendar 2019, they totaled $81,167,225, an increase of $17,511,454. For calendar 2020, they totaled $87,378,555, an increase of $6,211,330. For calendar 2021, they totaled $105,842,669, an increase of $18,464,114. For calendar 2022, they totaled $108,088,894, an increase of $2,246,225 [Bob Mercer, “‘Wayfair'” Helped Boost State Revenue During Pandemic,” KELO-TV, 2023.10.27].

$108 million in remote-seller sales tax—that’s just a little more than the $104 million that Representative Chris Karr (R-11/Sioux Falls) told us we’re leaving in shoppers’ pockets by cutting the state sales tax from 4.5% to 4.2%. Of course, from Mercer’s numbers, it appears Jackley’s Wayfair victory has only led to $52 million more in online sales tax than what were already taking in from voluntary collections before that Supreme Court ruling. So we’ll just have to hope that all the good Trumpists Noem is recruiting to come make guns and retire in South Dakota are buying lots more groceries and boats to help keep the state budget afloat.

2 Comments

  1. John

    Us county residents need zip codes reflecting that we don’t pay municipal sales taxes. The city doesn’t plow my street, provide water, take away sewage, patrol, regulate or enforce county regulation, etc. It’s a travesty to pay municipal sales tax on items not purchased in the town and for services not provided.

    First, there ought to be a sales tax rate for non-municipal residents.
    Second, and be careful what I wish for here, the counties ought to consider stepping in to collect sales tax on residents living outside the municipality.
    It would be fun watching the counties declare a tax war on the towns. Where are the Associations of County Commissioners? the Association of County Officials?

  2. Because freedom from oppressive government!

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