Blue Nile Stops Shipping to South Dakota Over ‘Unconstitutional’ Law

Retailer says new state law contradicts federal law.

Due to a new online sales tax law in South Dakota that took effect May 1, Blue Nile has halted business there for the foreseeable future, Internet Retailer reports. The article says that the law requires large online retailers to collect and remit sales tax, even if they don’t have a physical presence within the state.

“Unfortunately, South Dakota’s law is in direct contradiction to federal law, and we made the difficult decision to temporarily suspend shipping to South Dakota until this unconstitutional law can be addressed,” a spokesman for Blue Nile told the news outlet. “I can’t comment on specific sales figures, but we are disappointed we can no longer ship to our customers in South Dakota.”

Other online retailers may follow in Blue Nile’s footsteps, the article adds.

Read more at Internet Retailer