Glad You Asked
Q. Since the American Farm Bureau Federation is a tax-exempt nonprofit, does that mean the city and state will lose out on taxes that had been paid from Dakotafest when it was privately owned?
A. The purchase of Dakotafest by the American Farm Bureau Federation will not affect the sales taxes paid at the event, according to Alison Jares, tax administrator for the South Dakota Department of Revenue.
"The fact that an entity is nonprofit does not relieve them of paying tax on taxable transactions," Jares said in an email reply to The Daily Republic. "The purchase of Dakotafest by the American Farm Bureau Federation will not affect the taxes due for this annual event."
The American Farm Bureau Federation is reviewing its local, state and federal tax obligations as a result of the acquisition, according to American Farm Bureau Executive Vice President and Treasurer Julie Anna Potts.
"The bigger news for the Mitchell community is that AFBF has no plans to move Dakotafest from its current location," Potts said in an email reply to The Daily Republic. "The related economic activity will continue to thrive and grow under AFBF's ownership."
An IRS spokesperson did not immediately respond to a Daily Republic inquiry about federal taxes.