HomeLatest NewsState NewsNew potential revenue for providers increases - what’s the catch?

New potential revenue for providers increases – what’s the catch?

In June 2018 the State of South Dakota won a U.S. Supreme Court case, South Dakota v. Wayfair (a lawsuit which allowed the state to collect sales tax on online purchases.) The South Dakota legislature proceeded to head into special session in mid-September to create an official start date for online collections to begin Nov. 1.

South Dakota is experiencing a slight uptick in sales tax revenue as more companies are registering to collect and remit sales taxes. What does this mean for providers in South Dakota?  A potential new revenue source for negotiating increased provider rates. On the flipside, there are more than a couple glitches popping up on the radar. One major issue could be at the national level with the U.S. Senate Democrats pushing for a moratorium.

Stay tuned for further information regarding the twists and turns regarding this complicated tax issue which could assist the South Dakota health care organizations in the long term.

Read more in Tax Notes: Senate Democrats Push for Moratorium on Remote Sales Tax Collection

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