The multi-state sales tax agreement of South Dakota has resulted in millions of revenue but also limited some actions of the state.
Millions of sales tax revenue resulted in a limitation of actions with its tax base for South Dakota. (Photo: Business Standard)
Multi-State Sales Tax Agreement’s Positive Negative Effects On South Dakota
The multi-state sales tax agreement of South Dakota has resulted in many effects since it was implemented. The multi-state tax agreement of South Dakota both resulted in good and bad effects being felt by the said state.
Due to the multi-state sales tax agreement, South Dakota has earned millions of tax revenue. Over the years, millions of tax revenue have been coming in due to the multi-state sales tax agreement.
The tax base, however, is in a different state because of the multi-state sales tax agreement. South Dakota has limited power and actions on what they can do with the tax base due to the multi-state sales tax agreement.
According to a published article by the Washington Examiner, the South Dakota Department of Revenue stated that with a high revenue due to the multi-state sales tax agreement, South Dakota is limited to certain actions. The multi-state sales tax agreement also has a rule that dictates a single tax base is a must for every member state.
Legislation To Limitation Of Agreements
In a published article by Bloomberg Tax, California cities will start to seek legislation. This is to limit tax-sharing arrangements that provide windfalls to cities and provide public money amounting to millions to certain retailers.
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