GLAD YOU ASKED: Do SD residents have to pay tourism tax?Q: I want to know, if I’m not a tourist, do I have to pay the new tourism tax? And since I live outside Mitchell, can I get a refund on that tax?
Q: I want to know, if I’m not a tourist, do I have to pay the new tourism tax? And since I live outside Mitchell, can I get a refund on that tax?
A. The short answers are yes and no.
House Bill 1066, which was signed into law Feb. 4 by Gov. Dennis Daugaard, was not a new tax but permanently set the visitors-services tax at 1.5 percent, where it had been temporarily. The measure imposes the 1.5 percent tax on the “gross receipts of any lodging establishment, campground, motor vehicle rental, visitor attraction, recreational, equipment rental, recreational service, spectator event, and visitor-intensive business.”
Mitchell Finance Officer Marilyn Wilson explained that the updated tax law is business, and not user, specific.
“It’s a tourism tax that applies to anyone who uses those services,” Wilson said. “It’s not just taxing visitors who come to our communities, but anyone who avails themselves of those services that have that specific tax. A refund would not be available to a local resident.”
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