SIOUX FALLS, S.D. (KELO AM) - Legislators admit that Senate Bill 106, collecting state sales tax from internet businesses, is intended to force the issue in the courts.
The House State Affairs Committee Monday morning unanimously passed the bill, called the Main Street Fairness Act, and moved it on to the House floor. It's already passed the State Senate.
A main sponsor, Brandon Representative Roger Hunt says the inability to collect the use tax is eroding South Dakota’s tax basis.
Hunt told the State Affairs that local retailers have to collect sales taxes and that puts them at a disadvantage against internet sales.
Hunt believes retailers would contribute to a litigation fund. He says there are other interests who might provide legal advice or expertise.