The state of South Dakota began collecting sales taxes from online purchases last month (Nov. 1, 2018). But, collecting online sales taxes doesn’t necessarily mean more money in the state coffers.
South Dakota law says sales tax would decrease one-tenth of a percent for every $20-million raised through online sales tax collections, reducing the half cent sales tax currently used to raise teacher salaries.
During a legislative forum with the Pierre School Board yesterday (Mon.) afternoon, District 24 Senator Jeff Monroe said he doesn’t think the half cent will be reduced.
Pierre School District Supt. Dr. Kelly Glodt thinks not ratcheting back the half cent as online sales taxes come in will be good for schools.
Both Sen. Monroe and Rep. Mary Duvall agree what happens to the half cent sales tax will create a lot of discussion during the upcoming legislative session.
Due to the uncertainty about how much money online sales will bring in, Gov. Dennis Daugaard’s 2020 budget proposal last week (Dec. 4) didn’t include spending any of those dollars.
