Amazon will begin collecting state and local sales taxes in South Dakota on February 1, Governor Dennis Daugaard said during a speech opening the 2017 legislative session, the Associated Press reported.
A law passed last year in the state requires out-of-state sellers who exceed revenue and transaction thresholds to comply with state sales tax laws, the AP said. The state has estimated that it's missing out on $48 million-$58 million annually in state and municipal tax revenues from online sellers. The state receives much of its revenues from sales taxes.
Daugaard said Amazon's decision to collect sales tax "doesn't solve the sales tax issue for online purchases, but it's a big step in the right direction." House Republican leader Lee Qualm added: "It's not going to fix everything, but it's a good start. Hopefully other companies will jump on the bandwagon."
Daugaard said he was unable to estimate how much money the move will add to the state because Amazon had declined to give the state relevant information.