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South Dakota enacts legislation challenging Quill’s physical presence requirement

South Dakota Gov. Dennis Daugaard signed legislation, S.B. 106, on March 22 requiring certain remote sellers that do not have a physical presence in South Dakota to collect sales tax on sales made in the state. The collection and remittance duties are triggered if certain gross revenue or transaction thresholds are met. S.B. 106 is noteworthy not only for clearly laying out South Dakota’s policy reasons for enacting the legislation but also for expressing the state’s clear directive to quickly produce a test case to challenge the physical presence requirement stated by the U.S. Supreme Court in Quill Corp. v. North Dakota.

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