SIOUX FALLS, S.D. (KSFY) - Vendors at the Falls Park Farmers Market said the state recently sent many of them letters stating they'd need to begin collecting and remitting a tourism tax, because the market is held in a tourist destination.
Many vendors at Saturday's market, as well as local legislators, Karen Soli (D) Sioux Falls and Greg Jamison (R) Sioux Falls, were opposed to the tax, but wanted to abide by the law, said that they had negotiated a deal with the state to remit the tax for the rest of the season until it could be discussed at the state's next legislative session.
They said the deal had wiped out the three years worth of back taxes, plus interest, the state had asked for.
After KSFY News aired a story at 6 p.m. Saturday regarding the "tourism tax," Gov. Dennis Daugaard's Chief of Staff, Tony Venhuizen, reached out to KSFY News reporter Erika Leigh to say Department of Revenue Sec. Andy Gerlach had reviewed the criteria and determined the tax did not apply.
Venhuizen issued this statement, noting that the vendors had likely not even been notified yet:
"The Secretary of Revenue, Andy Gerlach, reviewed this situation and determined that the tourism tax does not apply. Vendors will not be required to collect tourism tax, and any tax they have paid will be refunded."