PLATTE, S.D. (WNAX) – The State of South Dakota is seeing mixed signals on sales tax revenue in the new fiscal year. The Bureau of Finance and Management is projecting sales taxes will come in about $8 million under the earlier estimate.

House Majority Leader Lee Qualm of Platte says it shouldn’t be a surprise.

The state started taxing online sales last year, but Qualm says he never thought that would bring in the dollars that were projected.

Congress has repealed the tax on internet providers which could cost the state millions of dollars. Qualm says that is another potential budget hole.

The numbers will all come together when Governor Kristi Noem presents her next budget to the legislature in December.