WHO IS RESPONSIBLE TO PAY SALES TAX IN SOUTH DAKOTA?
EVERYONE IS SO CONCERNED OVER VOTING RIGHTS vs RV CAMPERS or TRAVELERS DUE TO THE DOMICILE RULES BUT THE SALES TAX ISSUE GETS OVERLOOKED.
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.
Let's Review the Domicile Rules, Shall We?
- Any American can Reside in South Dakota for a Minimum of 24 Hours to Establish Domicile;
- All such Americans must Submit themselves to the State by Transferring their Live Birth Documents to the State;
- All Americans choosing to establish Domicile - must obtain a Driver License or Identification Card;
- All Americans must fully Register at least 1 or 2 Motor Vehicles within the Jurisdiction of S.D.C.L 1-1-1;
- All Americans must fully Establish their Legal Status within the Borders of South Dakota - this means, Joining a Church Congregation, Local Charity, Housing Association, South Dakota Campground Association or Community, Become a Member of a Registered S.D Bank or Credit Union, or becoming a Member of any Union, Organization, or Association;
- Must Remit All Property Taxes, Sales Taxes, or any other Direct Tax Assessed to their Land, Real Property, Person;
- Must Become a Registered Voter listed in the State's Master Voter File; and
- Must Record, and Hold on File of the State, a Legal Residential Address of which is Allowed by Codified Law.
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.
- All American Citizens of the State, who have paid Sales Tax - can in fact apply for a Tax Refund where their Annual Income fell below 150% of the Federal Poverty Threshold, which allows them to receive up to $650 dollars annually each year. This money is then further reimbursed to the "taxpayer" to help them buy food, clothes, utilities, helping to subsidize their basic living.
- All Americans CItizens of the State of whom "Travel" outside State, and elect to pay Sales Taxes in Foreign States, can further Apply for a Tax Credit on all sales taxes paid to other States, where they paid greater than the codified 'tax rate' they are legally, and lawfully told to pay. So any time you pay more than 4.5% (or 6.5% including local sales tax), you can apply for, and request a "Credit" upon remitting to the State a Tax Return for each Month's worth of Expenses.
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".