PIERRE, S.D. - Legislators will meet in Pierre Wednesday for a special session requested by Governor Dennis Daugaard. This is because of that historic Wayfair vs. South Dakota case, where the Supreme Court ruled states can collect sales tax from out-of-state online retailers.
It's a little ironic the bill was drafted in South Dakota and now the state can't even begin to collect sales tax but every other state can. That's because South Dakota has specific laws on the books banning it.
Senate bill one will lift an injunction that blocks South Dakota from collecting sales tax from online retailers like Amazon. If passed Wednesday, that would go into effect November 1st.
Senate bill two would make online marketplaces, like eBay, charge sales tax if the website handles payments. That wouldn't go into effect until March 1st if it's passed.
Lawmakers on both sides of the aisle said there's widespread support for the bills, but it doesn't mean things will be cut and dry Wednesday.
"I think there's the possibility of possible amendments to both of these bills related to the sales tax. But I would be surprised if there was any subversive change," Senator Reynold Nesiba said, who is a democrat representing Sioux Falls.
"Any time we talk taxes, whether it's sales tax, property taxes, it's complicated. As you heard, it's not simple," Senator Deb Peters said, who is a republican representing Hartford. "We're not talking the color black and the color white. We're talking about a very complicated area of tax law."
The special session is expected to start at 10:00 AM with an address from the Governor.
"All states are kind of moving in the same direction together and so we're trying to make it easier for businesses to be consistent in our law. We're just trying to make sure that all businesses are going to be on a level playing field before the holiday season passes," Senator Peters said.
Stick with KSFY News online and on the air for updates throughout the day on what happens in this special session.