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Sales tax agreement brings in millions but limits South Dakota

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Sales tax agreement brings in millions but limits South Dakota


(The Center Square) – South Dakota’s membership in a multi-state sales tax agreement has brought in millions in sales tax revenue over the years but limits what the state can do with its tax base, according to the South Dakota Department of Revenue.

South Dakota has been a member of the Streamlined Sales and Use Tax Agreement since its inception in 1999. The agreement dictates that member states must have a single tax base for all state and local jurisdictions, a single rate in each jurisdiction, uniform administration of exemption certificates, sourcing rules, and uniform definitions of products and services.

Officials from the Department of Revenue told the Study Committee on County Funding and Services Wednesday that South Dakota has collected over $78 million in state tax and $28 million in city tax from its 10,255 streamlined sales tax registrants since 2005.

At the time of Streamline’s creation, U.S. Supreme Court decisions had limited the ability of states to levy taxes on businesses not physically present in the state.

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Currently, 23 states are full members of the Streamlined Sales and Use Tax Agreement and follow its rules.

“These rules don’t tell us what the states can tax or what they can’t tax, it just says that all states must tax the same items and those items must have the same tax rate throughout the whole state,” said Doug Schinkel, the business tax director for the Department of Revenue. “So each state gets to choose what they tax, but Streamline creates the definitions of those items and products that can be taxed and we must follow those definitions. And that’s key because it simplifies things for business.”

The Department of Revenue said Streamline’s rules decrease the cost of tax compliance and minimize the burden on taxpayers by allowing businesses to file, report, and pay sales and use taxes for all jurisdictions to one location.

“These rules were developed and implemented simply because we wanted to make it as simple and as easy and as inexpensive as possible for those remote sellers, those Streamline participants, to do business not only in our state but in other states as well,” said Schinkel.

In 2018, a U.S. Supreme Court ruling known as the Wayfair decision said that states could require sellers to collect sales taxes on sales delivered to locations within their state, even if there was no physical presence of that business in the state. South Dakota’s membership in Streamline was cited as one of the deciding factors in the ruling, according to Schinkel.

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“It’s very important for us to remain in compliance with Streamline,” said Schinkel. “And to do so, the key point, I think, for this committee here today, is any local taxes that are imposed, the same rate is across that full jurisdiction.”

The committee asked whether a tax could be implemented or imposed in rural areas of a county but not in a municipality, said Schinkle.

“The answer is no, if we want to remain in compliance with Streamline,” Schinkle said, stating local jurisdictions must have the same sales tax rate throughout the jurisdiction.

Rep. John Mills, R-Brookings, asked why the state doesn’t have a 6.2% sales tax across the board.

“It’s uniform. It’s complete, it’s easy to do. We’re making it too difficult,” Mills said.

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Schinkel replied that he didn’t personally disagree but felt municipalities would not go for the idea.

“The state of South Dakota is very, very cautious and very, very jealous of the right to the sales tax,” said Sen. Jim Bolin, R-Canton. “I think everybody should keep that in mind. That’s been my observation for 15 years.”





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South Dakota

Company applies to build 68-turbine, $261 million wind project in northeast SD • South Dakota Searchlight

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Company applies to build 68-turbine, $261 million wind project in northeast SD • South Dakota Searchlight


An energy company has applied to construct another wind farm in northeastern South Dakota.

The company is Chicago-based Invenergy. It wants to build up to 68 turbines through its South Dakota subsidiary, Deuel Harvest Wind Energy South. The turbines would be spread across 54 square miles of privately owned land near the small town of Brandt in Deuel County. The project’s estimated cost is $621 million.

The “south” in the project’s name distinguishes it from the 109-turbine Deuel Harvest Wind Farm, which Invenergy completed in 2021 and sold to Atlanta-based Southern Power.

The new project would be located about six miles south of the existing Deuel Harvest wind farm. Another wind farm, Tatanka Ridge, is adjacent to the southwest edge of the proposed project area. If the new project is approved and built, it would raise the number of wind turbines in Deuel County to 233.

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The new project could deliver up to 250 megawatts of electricity. South Dakota ranks 13th in the nation with 3,462 megawatts of installed wind energy capacity, according to the American Wind Power Association.

The South Dakota Public Utilities Commission issued a public notice Wednesday about Invenergy’s application. People with a direct interest in the project have until Aug. 27 to apply for “intervenor” status, which would allow them to participate in hearings, file motions, request facts or documents, and engage in other aspects of the permitting process.

The new application says Invenergy will not use eminent domain, which is a legal procedure to obtain land from unwilling landowners.

“South Deuel Wind has entered into long-term, voluntary lease and easement agreements for the placement of Project Facilities with private landowners within the Project Area,” the application says.

Invenergy estimates the project will generate payments to landowners totaling $78 million over the next 30 years, and property tax revenue generated for local governments will total $38 million during the same period. The project is expected to create 243 jobs during construction and eight long-term operational jobs.

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While Invenergy was working on its previous project, some local residents challenged special exception permits issued to the company by Deuel County. The permits were ultimately upheld by the state Supreme Court.

Deuel Harvest Wind Energy South project map

The Deuel Harvest Wind Energy South project map. (Courtesy of South Dakota Public Utilities Commission)

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Update: Missing 17-year-old in Turner County located in Yankton

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Update: Missing 17-year-old in Turner County located in Yankton


SIOUX FALLS, S.D. (Dakota News Now) – Update: 17-year-old Vevon McGee was located in Yankton Saturday around 6:15 pm, which is nearly 50 miles from where he went missing.

Previous story…

The search is on for a missing person in Turner County. Tevon McGee went missing Friday night around 11:00 pm.

He is 17 years old and has the development of an 8-year-old.

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He was last seen near Marion wearing the same shirt as the one on the missing poster.

Agencies searching for missing 17 year old in Turner County(Cordell Wright)

The Turner County Sheriff’s Office and the other local rescue agencies are assisting with the search effort.

Those with information are asked to call the Turner County Sheriff’s Office at (605) 297-3225



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Fiery railcars with hazardous material mostly contained after derailment in North Dakota

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Fiery railcars with hazardous material mostly contained after derailment in North Dakota


Enflamed railcars carrying hazardous material were mostly extinguished Saturday, a day after they derailed in a remote area of North Dakota.

Officials said Friday no one had been hurt. The threat to those living nearby remained low, according to county emergency management, which reported no air contamination in the area or downwind.

Twenty-nine cars of a CPKC train derailed around 3:45 a.m. in a marshy area surrounded by farmland that is about 140 miles (225 kilometers) northwest of Fargo, county emergency management director Andrew Kirking said.

Kirking said in a statement Saturday that the fire would still occasionally flare up as responders moved railcars from the tracks. But “firefighting operations through the night and morning have been incredibly successful,” he said.

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Emergency officials now say the contents of the derailed cars included anhydrous ammonia, methanol and plastic pellets.

Bill Suess, spill investigation program manager for the North Dakota Department of Environmental Quality, identified ammonia as a potential risk, but wind was carrying the smoke away from the nearby town of Bordulac, which has about 20 residents.

“Wind has been in our favor on this,” Suess said Friday.

Exposure to high concentrations of ammonia in the air can cause burning of the eyes, nose, throat and respiratory tract, and can result in blindness, lung damage or death, health officials say. Exposure to lower amounts can result in coughing and irritation of the nose and throat.

CPKC said in a statement Friday that it has “initiated its emergency response plan and launched a comprehensive, coordinated response.”

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The railroad was the result of a merger last year of Canadian Pacific Railway and Kansas City Southern.

The National Transportation Safety Board said Friday that it is investigating.



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