South Dakota says farmers market should pay tourism tax
Food growers who participate in the weekly Sioux Falls Farmers Market at Falls Park for years have collected sales tax on their products, but apparently, that’s not enough.
The group this week said the South Dakota Department of Revenue is pressuring the Farmers Market to begin collecting and remitting a 1.5 percent tourism tax and could even go after vendors for three-year’s worth of unpaid back taxes, Argus Leader reports.
“It’ll ended up hitting the vendors hard,” said Susan Randall, one of more than 20 vendors who regularly sell produce at the Farmers Market.
Randall is acting as the group’s spokesperson.
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The revenue office is citing the South Dakota law which deals with retail sales at “visitor-related businesses.” According to the statute, the state can impose a tourism tax on sales that take place at visitor attractions, recreational services, spectator events or a “visitor-intensive business.”
Wade LaRoche, marketing and communications specialist with the revenue office, said because the Falls Park Farmers Market takes place at one of Sioux Falls’ premier visitor attractions, it’s subject to the additional taxation.
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