Susan Wismer, a Democratic member of the state House of Representatives, encouraged South Dakota's U.S. senators to support the Marketplace Fairness Act during a recent trip to Washington, D.C.
She met with Democratic Sen. Tim Johnson and the staff of Republican Sen. John Thune and urged Congress to fix a loophole that hurts local businesses and hampers local job growth, according to a news release. She said passing the Marketplace Fairness Act would fix a problem with the collection of sales taxes that favors remote sellers at the expense of local retailers.
"It doesn't make any sense to keep giving a break to online retailers who don't have a physical presence in our state, while leaving brick-and-mortar stores, the backbone of our local economy, at a competitive disadvantage," she said in the release.
Estimates are that passing the act would allow South Dakota to collect between $40 million and $60 million more in sales taxes per year from companies that don't now pay the tax, Wismer said in the release.
A 1992 Supreme Court decision prevents states from requiring out-of-state sellers to collect sales taxes on purchases made remotely through catalogs or over the Internet, even though the taxes are legally due, according to the release.