South Dakota Seeks Overturn Of High Court Sales Tax Decision

PIERRE, S.D. (AP) – Officials in South Dakota who want to be able collect sales taxes from out-of-state internet retailers are going to court – and they’re eager to lose.

For now, South Dakota is about to ask its high court to reject a law that requires out-of-state sellers to comply with state sales tax laws if they meet certain revenue or transaction thresholds.

That’s because the state wants to appeal to the U.S. Supreme Court. The goal is to reverse a 25-year-old decision by the nation’s highest court that blocks states from forcing retailers to collect taxes if they don’t have a physical presence in the state.

South Dakota is the farthest along of several states pursuing such a strategy. The outcome could reshape the booming online commerce sector.

Arguments are scheduled Tuesday.

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