Message from the Secretary
On December 3rd Governor Daugaard gave his Fiscal Year 2015 budget presentation. His presentation emphasized the fundamentally sound position of South Dakota’s economy and state government budget. South Dakota tax revenues continue to provide a stable base to support our state operations and provide the funding for programs and services that benefit our citizens. The Governor applied a lot of common sense in the budget and his priorities are working to strengthen the state’s budgetary position well into the future.
For the first quarter of the New Year, we will once again focus on South Dakota’s Legislative Session. The Department will be called upon to provide statistical information and analytical insight as legislators review the proposed changes to current South Dakota laws. The Legislative Session is a great opportunity for us to educate lawmakers and the public on the important work we do. I look forward to the opportunity to interact with our lawmakers to establish good tax policy as well as strengthen our current tax system.
I hope you find this newsletter to be a valuable source for Department information. I encourage you to follow us on Twitter, Facebook, and through our blog to receive immediate access to news announcements affecting our agency. If you have any questions on information contained in this newsletter or article suggestions for future newsletters, please contact DOR Marketing and Communications Specialist Kelsey Baker by email at email@example.com or by phone at 605.773.3311.
May the coming year bless you with peace and prosperity.
The municipal tax changes that will take effect next month include:
- Wessington is increasing its 1 percent general sales and use tax rate to 2 percent.
- Pukwana is imposing a 2 percent general sales and use tax rate.
- Mellette is imposing a 2 percent general sales and use tax rate.
- New Effington is imposing a 2 percent general sales and use tax rate.
The South Dakota Department of Revenue has Municipal Tax Information Bulletins available listing all municipal sales and use tax rates statewide as well as information on tribal sales, use and excise taxes. Updated bulletins are free of charge and available after Jan. 1, 2014, by contacting the Department of Revenue at 800-829-9188 or by downloading a copy from the Department’s website by selecting “Municipal Tax Changes” in the “LEARN ABOUT” section of the webpage.
24-hour Vehicle Registration Renewal Available in Yankton
The 24-hour self-service terminal (SST) is available at the Hy-Vee Food Store, located at 2100 Broadway Ave.
This machine is the final installation of the sites selected in November 2012 according to Deb Hillmer, director of the Division of Motor Vehicles.
“We are pleased to be able to place an SST in the newly remodeled Yankton Hy-Vee Food Store,” said Hillmer. “South Dakota now has 10 self-service terminals operating throughout the state.”
A vehicle owner can navigate through the registration renewal process using the terminal touch screen (voice assistance available) and a valid South Dakota driver’s license, South Dakota identification card, or if a company, the information provided on its renewal notice. Once the payment is processed by the terminal, the license renewal tags and vehicle registration are dispensed directly from the machine to complete the transaction.
The SST allows vehicle owners to register up to 90 days prior and 30 days after the expiration of their current license tags. A $2 convenience fee per vehicle is assessed.
Vehicle owners from any county can use the terminal with the proper identification.
Motor vehicle registration renewal terminals are also available in: Kessler’s in Aberdeen; the County Fair Food Store in Mitchell; the Public Safety Building on Kansas City Street and the Rushmore Mall in Rapid City; the Department of Revenue Pierre Office at 445 East Capitol Ave.; the Get-N-Go on Arrowhead Parkway and Dawley Farms and the Hy-Vee Food Store on 49th and Louise in Sioux Falls; and the Hy-Vee Food Stores in Brookings and Watertown.
In addition to the self-service terminals, the regular options of renewing in person at the county Treasurer’s Office, by mail through the county and online Internet renewal through SD Cars are also available.
For both the online Internet renewal and the self-service terminals, acceptable forms of payment include electronic check, credit cards (MasterCard or Discover only), or ATM/debit cards supported by Pulse, Star, NYCE and Accel.
Power Play Changes Kick Off 2014
Beginning with the Jan. 22, 2014 Powerball drawing, players will see some familiar changes to the Power Play option. Effective that drawing, the Power Play option returns to a random multiplier, which is how the option worked prior to the implementation of the enhanced Powerball game in 2012. When the change takes effect in January, Power Play will once again use a random multiplier of 2X, 3X, 4X, or 5X. Prizes on winning tickets will increase by whatever multiplier is randomly selected each drawing. The exception will be the jackpot (which has never been subject to the Power Play multiplier) and the Match 5 prize which will remain at $2 million when the Power Play option is purchased. Powerball tickets will continue to cost $2 per play with the Power Play option remaining at an additional $1 per play.
Party with the pros at the Ultimate Tailgate Party!
Picture yourself and three guests rubbing elbows with the greatest players in pro football at the ULTIMATE private tailgate party. It could happen; here’s how. Just purchase a Powerball or Powerball with Power Play ticket with a retail value of $10 or more between now and Feb. 9, 2014. Then go to the official South Dakota Lottery Ultimate Tailgate Party website and enter the 18-digit ticket serial number from that ticket into the drawing to win one of two trips for four to the Powerball Pro Football Hall of Fame Ultimate Tailgate Party in Cleveland, OH in May of 2014. Drawing will be held Feb. 11, 2014. See the official rules for details and get in the game!
Use Tax and Resale Certificates
If you purchase items with a resale certificate, then use the items in your own business, you owe use tax on those items. This can happen when buying both taxable and non-taxable items from the same vendor. For example cups and lids can be purchased free of tax for resale with food items while straws and napkins cannot. You should pay use tax on any straws and napkins purchased from a vendor who did not charge you tax.
Knowingly using a resale certificate to evade tax is a class one misdemeanor under SDCL 10-45-61. If this issue is discovered in an audit, you can be charged a penalty of up to 50% of the unpaid tax in addition to the tax and interest owed. It is your responsibility to identify taxable purchases and ask the vendor to charge you tax on those items, or remit it yourself.
If there are any previous returns you would like to correct to pay omitted use tax, you can do so using South Dakota’s new filing system E-Path. If you have any questions regarding resale certificates or your sales tax license, please call 1-800-829-9188.
Social Media is Growing within the Department
Social Media has grown in the last several years and it is growing in the Department as well. The Department has Facebook, Twitter and now added a Blog to the list. These outlets enhance communication with other state agencies, taxpayers across South Dakota and other states. You will find education dates, business tax dates and deadlines, news releases, question/answers, and more! Get out there and like and follow DOR pages!
Collection Allowance Credit Available January 1
Beginning Jan. 1, 2014, participating retailers will be eligible to claim a collection allowance credit when filing and paying their sales tax as imposed by chapter 10-45, under a law passed by the 2013 South Dakota Legislature.
Senate Bill 51 established the collection allowance credit of 1.5 percent of the tax due, not to exceed $70 for each reporting period, to taxpayers who timely file and pay tax returns electronically through the Department of Revenue.
“Retailers who want to receive this credit must sign up to file and pay taxes electronically through EPath, our online tax file and pay system,” states Doug Schinkel, director of Business Tax Division. “Information on electronic tax filing and how you can create an EPath account is available online at EPath.”
The collection allowance applies to all taxes reported on the sales tax return form including sales tax, use tax, tourism tax, municipal sales taxes, telecommunications gross receipts tax, excise tax on farm machinery, amusement device tax, motor vehicle leasing tax, intermediate care facility tax, Sioux Falls lodging tax and tax collection agreement taxes.
Licensees who have outstanding tax returns, who have outstanding tax balances due to the Department or those that do not file and pay electronically will not receive the allowance. In addition, the allowance does not apply to contractors’ excise tax returns.
Do you have questions on electronic tax return filing or the collection allowance credit? Contact the South Dakota Department of Revenue at firstname.lastname@example.org or call 800-829-9188.
Special Agent Halse Earns CFE Credential
Investigative Services Bureau Special Agent Darrell Halse has been awarded Certified Fraud Examiner (CFE) credential from the Association of Certified Fraud Examiners (ACFE).
In order to become a CFE, Special Agent Halse had to meet a stringent set of criteria and pass a rigorous exam administered by the ACFE.
Halse has successfully met the ACFE’s character, experience and education requirements for the CFE credential, and has demonstrated knowledge in four areas critical to the fight against fraud: fraudulent financial transactions, fraud prevention and deterrence, legal elements of fraud and fraud investigation.
Halse has been a special agent with the Department of Revenue’s Investigative Services Bureau for nine years.
Use Tax Due on Online Holiday Purchases
The Holidays are over and it's time to pay those bills! As South Dakotans head to their computers, the South Dakota Department of Revenue reminds them that state and municipal use tax may be due on their purchases.
Business Tax Division Director Doug Schinkel says many consumers do not realize that most Internet retailers are not collecting sales tax on online sales, so use tax would be due.
South Dakota’s use tax rate is 4 percent, the same as the state’s sales tax rate. Municipal tax may also be due based on where the purchaser receives the goods. Schinkel says shoppers can find use tax reporting forms and other information on South Dakota’s use tax on the Department of Revenue website.