Conflicting insurance and business regulations passed by the South Dakota Legislature last year mean Sioux Falls won’t get Uber, Lyft or other ride-hailing services anytime soon, according to a state lawmaker.
Rep. Greg Jamison told fellow lawmakers and Sioux Falls Chamber of Commerce members this week that it will be a while before either company enters the city’s market. That’s because of city and state insurance regulations that require companies to collect and submit sales taxes, which he called a potential deal breaker, according to the Argus Leader.
“The city of Sioux Falls isn’t going to look the other way,” said Jamison, a Republican and former Sioux Falls City councilmember. “Until that’s figured out, don’t look out for Uber any time soon.”
Neither company responded to an Associated Press email requesting comment.
While South Dakota’s Legislature approved a law last year that set down insurance regulations and other requirements for transportation companies like Uber and Lyft, lawmakers also passed a law requiring online businesses without an in-state presence to collect and submit sales taxes. That law is meant to put online retailers on par with brick-and-mortar stores.
South Dakota sued a set of online retailers outside of the state that have kept up their business without sending in sales tax collections. Gov. Dennis Daugaard has said he hopes to take the case all the way to the U.S. Supreme Court.