Statement on Today’s Supreme Court Ruling
The U.S. Supreme Court ruled today on Wayfair v. South Dakota, deciding that states can collect sales tax from online retailers.
“Today’s ruling is tremendous news for communities across South Dakota experiencing a lag in sales tax revenue,” said Mayor Paul TenHaken. “The ability to collect sales tax for online sales will help the City invest in public safety, infrastructure, and amazing quality of life during a time when sales tax growth has been unpredictable and consumer buying habits have changed.”
During the past 20 years, annual sales tax growth has decreased in Sioux Falls. In 1997 the City’s annual growth was 9.5 percent, compared to 2017’s annual growth of only 1.9 percent. This change has a significant impact on our growing community’s ability to sustain services and quality of life. The amount of online sales tax dollars expected to flow to the City is unknown, but this ruling and its outcome will be beneficial in sustaining the City’s budget.
“I want to extend my thanks to Attorney General Marty Jackley for arguing the case as well as his team, Governor Dennis Daugaard, the Legislature, and especially State Senator Deb Peters, who helped make this all happen,” Mayor TenHaken added.