Legislative Special Session Announced for September 12, 2018
Gov.
Daugaard has announced a special legislative session for Sept. 12. What does that mean? All of us legislators, 70 in the House of
Representatives and 35 in the Senate, are called in to our chambers in
Pierre. Subject? According to the governor’s Chief of Staff,
it is to “expedite implementation of online sales tax collections.”
In our state government, the fiscal year goes from 1 July to 30 June. In our federal government, the year goes from 1 October to 30 September. In the real world, we operate our year from 1 January to 31 December. Why are our state and federal governments marching to different dates? My answer is that it allows state and federal government to play a shell game with the budget. In defense of our state government, we close the year out June 30th and have our budget balanced. This year, as of June 30, we ended with a $17million surplus. No, don’t get too excited! It wasn’t repaid to the taxpayers as overpayment! It was put into savings, which is our state piggy bank, and I’m not making this up. This legislator feels that if we have money left over at the end of our state year (June 30), it should go back to the taxpayers who in reality were overtaxed. But I digress.
Why the emergency for a special session? The cynical part of me says there is going to be a move to strike the Partridge Amendment. This amendment was added 3 years ago in order to pass the half cent sales tax increase. In a nutshell it says that once internet sales hit a hundred million, the half cent goes back to taxpayers.
With the lawsuit that Attorney General Marty Jackley presented in front of the United States Supreme Court, South Dakota vs. Wayfair, the U.S. Supreme Court ruled in our favor. This is a nation-wide ruling meaning that all 50 states can start collecting tax on internet sales.
Now the governor’s office says we need to adjust South Dakota codified law in order to collect. My question then, why aren’t the other 49 states having a special session? They are in the same boat we are!
No, I’m betting on the old sales gimmick of bait and switch, meaning we show up for the reason stated, but get pressure to repeal the Partridge Amendment. Heaven forbid we give back the half cent sales tax to the tax payers, even when it’s in the law already!
If I’m wrong, I’ll admit it in this column.
Thanks for giving me the opportunity to represent you in Pierre!
Tim R. Goodwin, Representative for District 30

