WHO IS RESPONSIBLE TO PAY SALES TAX IN SOUTH DAKOTA? 

WIth so much focus on the Voting Rights issues related to our Domicile Laws - any American can reside  in South Dakota for a minimum of 24 hours in order to establish themselves as an American Citizen of  the State of South Dakota.

 
Let's not forget the 'tax issue" in this same topic of discussion, and it is a huge one, cause South Dakota  has seen such population growth, economic growth, stemming from both Residents of State, as well as  from Non-Residents of the State.

 

During the debates regarding our State and Local Sales Tax Dollars, keep in mind, ALL  AMERICANS of whom placed their Domiciles inside South Dakota, effectively, legally, and  lawfully owe a Direct Sales Tax (property tax) on all things they purchase both inside, and  outside the borders of the State. Keep in mind, the Political Jurisdiction of the State is not the  same as "natural borders" - for by public statute they include anyone, and everyone who both  resides inside our borders, let alone those who reside in foreign states, but placed their loyalty,  and allegiance to the State during the Domiciling process itself.  

South Dakota's population includes far more than those Americans who actually reside inside  our natural borders, that population includes any such American who resides in States such as  California, Arizona, Texas, Florida, Illinois, New York, Minnesota, Iowa, and the list goes on and  on... 

As we begin to discuss our Sales Tax Revenues, think long and hard who actually owes the tax,  and where the tax is applied. 
 

All American Citizens of South Dakota, both residents and non-residents of the State itself - of  whom establish their Domicile within our natural borders whether by Apartment, a Home, a  Campground (private or public), a Hotel, and have gone through the process of submitting  themselves, establishing in fact, and by law, they are a S.D Citizen, they must remit all  transactions to the State Department of Revenue, even where they purchase the goods and  services from another State.  

While South Dakota Retailers are contracted by the State through their licenses, to collect the  "tax' inside the State from all persons residing or not residing in the State, even if you travel  outside the State, or reside outside the State, you too, must report all Foreign Transactions  made in the other States. This means that you are exempt from all other States, but must report  all transactions to the State of South Dakota no later than the 20th of each Month, of which the  tax becomes due no later than the 30th of the Month. 

If you think only the "voting" issues are affected by RV Persons, guess again, so are the "Sales  Tax Dollars" and if those people pay their taxes to the State, they are legally, qualified voters of  the State as well.  

During the Sales Tax Debate - the tax rate was being discussed, whether to exempt FOOD from  the tax itself. Most of us said no, keep the tax on food, but make the refund programs more  easier for those who wish to apply for help to pay their bills. 
 

With the advent of the Remote Sales Tax on Internet Sales, Out-of-State Sales, and to include  the Population Growth, South Dakota has a surplus of sales tax funds that is growing more than  any State in the Union, enough to perhaps provide Economic Relief to its Citizens of the State.  

Why would the Legislature not want to un-tax Food? Cause it knows, that the State is owed this "Tax" by  even those people residing outside the borders of the State, and of which those people like you and I,  are due a "Tax Credit" on any overpayment. 

The legislature also knows that the State Government will continue to beg, and ask for "Supplements"  where the revenues come in each year, above the projected revenue budgeted for, planned for the year  before. And this fact alone, may be the leading cause to maintaining the tax on food alone.  

Tax Supplements is a budgeting trick, for when your City or the State adopt a budget each year,  directing the government what it can and cannot spend for the next year, if the "tax revenues" come in above the projected amount, the State Govt, the State, or the City Government's can  request from the Legislature, County Commission, or City Council to spend the additional  revenues during the year.  

There are some of us who believe the surplus of revenues should go to the reserves, and wait  for the budgeting process to apportion the dollars for future years.  

 

Keep in mind in budgeting, games can be played, where you Budget for high cost of expenses,  while projecting so much revenues per year, that leads to revenues not being spent, due to the  nature of the projections agreed to.  

For example the Legislature projects we will receive $1,000,000 a year of taxes, so they budget  to spend $900,000 dollars promising to reserve $100,000. However, during the year, tax  revenues come in at $1,500,000 million, or $400,000 above the promise to restrict $100,000.  The government then comes before your legislature, to ask to spend $400,000 on specific  projects, thus supplementing the budget during the current year.  

 

My argument is, Finance Wizards can orchestrate or manufacture this illusion that 'we' have a  surplus, when in effect, the 'sales tax dollars" remain steadily on the rise due to many factors - Population, Economic Growth, Tourism, etc Keep in mind, the average Citizen of Sioux Falls  pays to the City an average of $690 per year @ 2.00% sales tax on all purchases. That does not  change...but where the City sees population growth of 5,000 new residents, who pay the tax, do  the math, that is 5,000 new residents who pay $690 per year...that is nearly $3,500,000 new tax  dollars every year for a city which has increased its population every year, since the 1990  census.  

Just imagine, all those American Citizens who have placed their Domiciles in South Dakota, but  continue to travel the 50 States by way of RV or Tent Camping, let alone reside in an Apartment,  Hotel, or House in a Foreign State, they to are paying "taxes" to South Dakota, let alone the City of Sioux Falls, if they have recorded in our public records, an "residency" in that political subdivision. When looking at population growth, and many other factors such as Non-Residents,  but yet are citizens of the State, living in places like Arizona, Texas, Florida, agreeing to pay our  Sales Tax rather than other States due to the domicile rules, "WE" continue to collect more in taxes. The Tax Base includes both Non-Residents of your State, because if citizens live in  Arizona, but claim S.D as their Domicile, they owe the tax to S.D, not Arizona. I can go to  Minnesota often, but I do not owe any sales tax to Minnesota, thus, I exempt myself, and remit  the transaction to S.D electing to pay S.D Sales Tax, but if I do pay that tax to a Minnesota  retailer, I am owed a "tax credit' in South Dakota. Keep in mind, with the advent of REMOTE  SALES TAX on the internet, more people living Arizona, Texas, Florida, California, New York  domicile themselves in S.D, thus they bind themselves to our "Taxes" So do the RV Campers - as  they Domicile themselves in S.D and live as S.D Citizens, despite the fact they reside in 50  States...everything they buy, they remit to S.D 4.5% Sales Tax, soon to be 4.00% They further  would owe up to 2.00% to the registered Political Subdivision (City) they claim as their official  residence. 
 

What the South Dakota Legislature should have done was investigated just where the Sales Tax  Revenue is coming from, whereas it is predominantly from actual S.D Residents, but yet  includes Out-of-State Residents as well.  

South Dakota has gained sales tax revenues for years, by people of whom voluntarily report  their Foreign Transactions. And today, as more Foreign States continue to increase their tax  rates, whether by Income Taxes, Land Taxes, Sales Taxes, more and more Americans are going  to continue to 'call themselves' South Dakota Citizens going through the process of Domilizing  themselves within S.D.C.L 1-1-1 - our Political Subdivision.  

The Tax Issue, and the Voting Issue go hand in hand in relation to Domicile, and where they  "Pledged" themselves to S.D, they have the right to Vote In South Dakota, and they have the right  to Exempt themselves from their current State of Residence. South Dakota simply has State  Citizens who reside in each of the 50 States, who most likely are paying taxes to S.D , yet alone  voting inside South Dakota itself. There is simply a difference between "Domicile" as it relates to  "residency".