Does Amazon pay local and state sales tax?

Amazon collects and remits state sales tax in every state that imposes one, including South Dakota.  

For years, states were hampered from collecting sales tax from internet purchases due to a 1992 U.S. Supreme Court ruling that said governments couldn’t collect sales taxes from a business that doesn’t have a physical store in the state. 

In 2017, Amazon voluntarily began collecting sales tax from South Dakota shoppers adding to the list of more than 30 states that were subject to sales tax.

A year later, the Supreme Court overturned the 1992 ruling. 

Since 2019, South Dakota has collected sales tax from online retailers with more than $100,000 annual gross revenue from sales in the state. Marketplaces that host sellers with cumulative sales above $100,000 are also taxed.