Sturgis rally sales tax; city and state losing thousands - KOTA Territory News

Sturgis rally sales tax; city and state losing thousands of dollars?

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The Sturgis Motorcycle Rally brings thousands to KOTA Territory every year, which brings money into Sturgis.

But what about money the city and state lose because of the rally?
 
That was a main topic discussed at Saturday's Legislative Crackerbarrel in Sturgis.  Branden Bestgen, Sturgis city councilman, says the city is missing out on tens of thousands, or even hundreds of thousands, of dollars because traveling vendors either under-report or don't report sales tax revenue.

Bestgen says this past rally, the Department of Revenue stepped up audits with the help of local law enforcement, which did increase the amount of revenue collected. However, he says the system is broken and needs to be fixed so covering the cost of the rally doesn't fall onto local taxpayers. "I think if we could come up with anything that could help Meade County recapture the cost of the rally, it's going to be a win for everybody because it's a win for the city residents, also because city residents pay county tax and city tax," said Bestgen.
 
Senator Larry Rhoden (R-District 29) says he plans on bringing this issues to the Department of Revenue. "I think our brick and mortar businesses, or our permanent businesses in Sturgis, they collect the tax and the remit the tax. It certainly seems unfair on its face to create a situation where traveling vendors come in and basically have a competitive advantage," said Rhoden. 
 

 

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