Wisconsin models sales tax collection off South Dakota

Wisconsin plans to exempt small businesses not located in the state from collection of sales tax for online purchases made by consumers in Wisconsin.

The state Department of Revenue said Thursday that its enforcement of the law will be consistent with the U.S. Supreme Court ruling last week. The court upheld a South Dakota law that exempted businesses with less than $100,000 in sales or fewer than 200 transactions a year.

Collection of the sales tax in Wisconsin will begin in October.

It’s expected to bring in about $120 million a year.

State law currently calls for the income tax to be lowered by an equal amount as the new sales tax, which the Legislative Fiscal Bureau says would result in an average tax cut of $52.