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Joint Committee on Appropriations discuss special session proposals

The Interim Joint Committee on Appropriations, co-chaired by Rep. David Anderson (R-Hudson) and Sen. Larry Tidemann (R-Brookings), met Sept. 11 to discuss proposed legislation which will be introduced and acted on at the Sept. 12 Special Session.

The proposed legislation consists of:

Senate Bill 1 revises the language of the 2016 law relating to the imposition of an injunction against collection of sales tax on remote sales now that the U.S. Supreme Court has ruled in favor of South Dakota. The change will allow the state to begin collecting sales tax from remote sellers who meet the $100,000 in sales or 200 transaction threshold beginning Nov. 1. Wayfair litigants are exempt under the proposal, leaving the court system to resolve the matter.

Senate Bill 2 requires marketplace providers to attain a sales tax license and remit sales tax on behalf of sellers utilizing their services. This applies to prominent websites that serve as a platform for third party sellers.

A third, unrelated proposal, House Bill 1001, clarifies the timing of the inauguration of the new governor in 2019. Current law says that state officials cannot be sworn in until the first Monday of January, which calls into question the legality of the scheduled inauguration ceremony on Jan. 5. The bill amends the law so that the inauguration can always be held on the Saturday before the state legislature convenes.

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