Tuesday, May 27, 2014

What is the Municipal Gross Receipts (bed, board, and booze) tax?

Cities can impose a general sales tax rate of up to 2%. This is in addition to the State's 4% sales tax rate. Cities may also impose an additional 1%, over and above their general rate, for any or all of the following:
  • Lodging
  • Alcohol
  • Eating Establishments
  • Admissions

Additional information on this tax can be found on page 9 of the Municipal Tax Guide, 1.800.829.9188 or bustax@state.sd.us.

Wednesday, May 21, 2014

Prime and Subcontractors' Tax Liability

The prime contractor’s contract determines the tax application for all subcontractors. If the prime’s contract is for a qualified utility construction project subject to tax under 10-46B, the subcontractor’s contracts are also subject to tax under 10-46B.
 
Projects that are not qualified utility projects (tax applies under 10-46A)
 
Prime Contractors:
  •  Owe 2% contractors’ excise tax on their gross receipts.
  •  Include the value of material furnished by the owner in their gross receipts subject to the contractors’ excise tax.
  • Owe 4% state, plus applicable municipal use tax on materials furnished by the owner if the owner does not document sales or use tax was previously paid
  • Owe 4% state, plus applicable municipal use tax on material they furnish for the contract if sales or use tax was not previously paid.
  •  Must issue prime contractor exemption certificates to all subcontractors.
  • Cannot deduct amounts paid to subcontractors in determining gross receipts subject to the contractors’ excise

Subcontractors:
  • Do not owe the 2% contractors’ excise tax IF a prime con- tractors’ exemption certificate is received for the project.
  • Owe 4% state and applicable municipal sales or use tax on material the subcontractor furnishes for the contract.
 
Qualified Utility Projects (tax applies under 10-46B)
 
Prime Contractors:
  • Owe 2% contractors’ excise tax on their gross receipts.
  • Do not include the value of the owner furnished material in their gross receipts subject to the contractors’ excise tax.
  •  Owe 4% state and applicable municipal use tax on materials furnished by the owner if the owner does not document sales or use tax was previously paid.
  • Owe 4% state and applicable municipal sales or use tax on material they furnish for the contract.
  •  Cannot issue prime contractor exemption certificates to subcontractors for a qualified utility project.
  •  Cannot deduct amounts paid to subcontractors in determining gross receipts subject to the contractors’ excise tax.
 
Subcontractors:
  • Owe 2% contractors' excise tax on their gross receipts.
  • Owe 4% state and applicable municipal sales or use tax on material the subcontractor furnishes for the contract.
  • Cannot accept a prime contractors' exemption certificate for a qualified utility project.
 
Learn more about Contractors' Excise Tax. 

 
 
 



 
 
 

Tuesday, May 20, 2014

Are you Planing to be a Vendor at the 2014 Sturgis Motorcycle Rally?


STEP 1: Apply for a Temporary South Dakota Sales Tax license (found in the FORMS link on the left side of this page)
  • All vendors must have a Temporary South Dakota Sales Tax license for selling or displaying a product or for providing services at the Sturgis Motorcycle Rally.
  • You must complete a new application each year.
  • If you have a Permanent South Dakota Sales Tax license, but are operating in a temporary location during the Sturgis Motorcycle Rally, you need to apply for the Temporary South Dakota Sales Tax License.
STEP 2: Determine if you need to post a bond
  • If you are a first time vendor you must post a $500 bond.
  • If you attended last year’s rally and filed and paid your sales taxes on time, you do not need to post a bond.
  • If you filed or paid your sales tax after the due date in 2013, you will need to post a bond. Please contact the Department of Revenue at 605-394-2332 to determine bond amount.
  • If you were a vendor in the past but did not attend in 2013, you will need to post a $500 bond.
  • We accept cash, business checks, cashier’s check, or money order. We cannot accept credit cards. Please do not send cash through the mail.
  • Bond is held as a deposit and will be mailed back to you when the rally has ended and your final sales tax return has been filed and proper sales tax has been paid.
STEP 3: Send application and bond (if needed, see Step 2) to SD Department of Revenue
  • You can submit application electronically by clicking the “Send Electronically” button at the bottom of the application form.
  • You can mail the application to SD Department of Revenue, 1520 Haines Ave Ste 3, Rapid City, SD 57701. (This is recommended if a bond is needed.)
  • You can fax the application to 605-394-6076
STEP 4: Receive your Temporary South Dakota Sales Tax license card and information packet.
  • Pre-registration is available from April 1 to July 1, 2014. If you apply between those dates, your packet will be mailed to you. Bond (if needed, see Step 2) must be received by Department of Revenue before license card and packet will be mailed. PLEASE BRING LICENSE CARD WITH YOU when you come to the rally. If you prefer to pick up your packet when you arrive in Sturgis, please mark the “held in office” box on the application.
  • From July 1 to July 28, you may go to the SD Department of Revenue office in Rapid City at 1520 Haines Ave Ste 3 to pick up your license card and packet.
  • Beginning July 29 at 1:00 pm, you will need to go to Sturgis City Hall at 1040 2nd St to pick up your license card and packet. Please review the office hours for the Department of Revenue’s office at Sturgis City Hall.

Wednesday, May 7, 2014

Openings at DOR

Is DOR the right fit for you?  Join the DOR Team and Apply now!
 
Accountant I - Division of Lottery
Closing: 05/16 
This position performs professional level accounting and routine audit work that requires the application of basic accounting principles, control procedures, and/or audit techniques following established procedures and/or standard practices. The incumbent will work with the Lottery gaming system and vendor gaming systems to monitor and record instant and on-line game transactions. This activity includes ticket sales, prize expense, commission expense, federal withholding, accounts payable and retailer payments. The duties of this position qualify towards the hourly work requirements to receive certified public accountant accreditation.

Revenue Agent - Division of Business Tax
Closing:  05/19
The Department is looking for individuals to fill two Revenue Agent positions; the first is within our tax discovery unit; the second is a member of our phone bank center. Revenue agents provide taxpayer education, support, and compliance enforcement, including collections. Successful candidates should possess knowledge of accounting and business administration; have oral and written communication skills; and possess the ability to deal tactfully with taxpayers and other professionals. The nature of the work requires investigative skills, independent judgment and logical decision-making in the application of statutes, rules, policies, written guidance, and technical criteria based on the facts presented.

Lottery Sales Representative - Division of Lottery
Closing: 05/16
This position is responsible for the coordination of marketing, sales and promotional activities of instant scratch and lotto tickets with lottery retailers in a defined territory. Responsibility includes establishing new lottery retail accounts and maintaining existing accounts through training and instruction of lottery rules, regulations, and policies. Sales Representatives also recommend promotional activities, provide and set up display materials (must be able to lift up to 40 lbs.), assist lottery retailers with ticket accounting issues and maintain good customer relations.
This position may assist with the licensing, inspection, and investigations coordinated by the Video Lottery division of the South Dakota Lottery.
A valid driver license and a substantial amount of driving is required - between 200 to 400 miles per week.
Applicants must be at least 21 years of age.
Lottery sales representatives occasionally work nights, weekends, and holidays due to special events, weather, and unforeseen circumstances.

Staff Attorney - Division of Legal Counsel
Closing Date: Open Until Filled
The Department of Revenue is seeking an attorney to perform a wide variety of legal services dealing with tax audits, business tax administration, property and special taxes, state administration of motor vehicles, and lottery and gaming. Responsibilities will include representing the Department before the Office of Hearing Examiners, Circuit Court, South Dakota Supreme Court and Federal Court, including the preparation of briefs and participation in oral arguments; providing legal support to all divisions within the Department; drafting administrative rules and assisting with the promulgation process; and providing legal opinions and advice to Department staff.
Applicants must be a graduate of an accredited law school and be a member or eligible for admission to the South Dakota State Bar.





 

Thursday, May 1, 2014

JavaScript must be enabled for EPath to work correctly

Need help enabling JavaScript?

If JavaScript is not enabled, then we recommend turning it on. A lot of websites use JavaScript as a part of their core functionality, and if you browse the internet without JavaScript enabled then you probably won't have the full experience that you normally would. Some websites may not work properly, others may not work at all.

This web page has instructions for activating Java based on a different browser options.
What is JavaScript?
JavaScript is a multipurpose programming language. There are many, many things that it can be used for. Generally speaking, it is used to allow Website developers to create web pages that have some intelligence built in to them. Instead of a webpage just being a plain page that has no interactivity, JavaScript can allow webpages adapt to what you do on the page, load new information, make decisions and respond to events.

For example, JavaScript might be used to validate a Mailing List Subscription form. So that when you try to submit a form the code runs and looks at each field on the form. If the code notices that you've forgotten to enter something in one of the fields (for example, your email address) it would pop up a warning and not let you submit the form until it is complete. Once that field is fixed then the form will be allowed to be submitted.

JavaScript can also be used to dynamically update part of a page without needing to reload the entire page.

Security

As with most things, there is a flip side to JavaScript. There is an increasing number of ways for JavaScript to be used maliciously. JavaScript based attacks such as Cross Site Scripting and Click Jacking rely on JavaScript and can cause your security to be compromised.  The South Dakota Bureau of Information and Technology has strict guidelines that must be followed to minimize these risks, however, other websites may not.  There are browser extensions for Chrome (NotScripts) and Firefox (NoScript) which can disable JavaScript by default but make it easy to turn it on only for trusted websites  (these have not been independently verified by DOR, but are examples of tools that are available).  


Information from wikipedia.com, activatejava.org, and whatismybrowser.com were used for this update.