Amazon to collect sales taxes in South Dakota

PIERRE, S.D. (AP) - Gov. Dennis Daugaard says online retail giant Amazon will start collecting sales taxes on purchases in South Dakota.

Photo: Amazon.com / MGN

Daugaard announced the development Tuesday in his State of the State address. The move is a win for South Dakota, which depends on sales tax collections to fund state government.

Daugaard says Amazon will begin voluntarily collecting state and local sales taxes Feb. 1 and will remit them starting in late March.

The news follows recent moves by Amazon in Utah, Iowa and Nebraska as more states push to collect taxes on internet purchases. The company's website says purchases in over 30 states are subject to sales taxes.

A 1992 U.S. Supreme Court decision bans states from forcing out-of-state retailers to collect taxes if they don't have a physical presence in the state.

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