Summer event vendors reminded of sales tax The South Dakota Department of Revenue and Regulation is reminding businesses taking part in special summer events like craft shows and county fairs to be prepared to collect and pay state sales tax.
Many South Dakota communities across the state host summer events that give vendors an opportunity to sell their products and services. Scott Peterson, director of the Department's Business Tax Division, says both vendors attending the event and organizers putting it on should be aware of the tax obligations associated with these activities.
"Vendors and businesses who set up booths or kiosks at these events for the purpose of selling merchandise or services are required by law to collect and pay sales tax on the items they sell. The policy is the same whether the event lasts one day or a week," Peterson said.
According to Peterson, event organizers should make sure each vendor has the information they need to meet their tax obligations before the event is held, or participating businesses can request the information from the Department of Revenue and Regulation. The policy affects events such as craft shows, gun shows, art shows/arts in the park events, conventions, county fairs, community-sponsored events like Goosefest and Riverboat Days, the South Dakota State Fair and the Black Hills Rally and Races in Sturgis.
Anyone anticipating selling products or services at these types of events should contact the Department of Revenue and Regulation's toll-free helpline at 1-800-829-9188 or visit their Web site at www.state.sd.us/drr for information on how to comply with the state's sales tax laws.