South Dakota farmers market reaches agreement on tourism tax

SIOUX FALLS, S.D. (AP) - A South Dakota farmers market has reached a deal with the state to end its tourism tax disagreement.

The Falls Park Farmers Market in Sioux Falls agreed Wednesday to pay a 1.5 percent tourism tax from now on, but the South Dakota Department of Revenue will forgive three years of back taxes because vendors were not aware of the tax, the Argus Leader (https://argusne.ws/2qjl7z9 ).

The market’s vendors have paid sales tax for years, but the Falls Park Farmers Market wasn’t alerted about the tourism tax until recently, market spokesperson Susan Randall said.

“The majority of vendors, they never had any idea they needed to pay it, so this is a new baseline,” Randall said.

The state said because the market is held in Falls Park - a major tourist destination Sioux Falls - it is subject to the state’s tourism tax.

Randall argued that only 5 percent of sales are from non-residents of Sioux Falls, and while thousands of visitors come to the public park every year, the market isn’t what draws them to the park.

“We’re agreeing to (pay the tourism tax), not because we think it’s right, but because it’s just how it is,” Randall said.

The farmers market group had considered moving to a different location to host its produce sales, but it worried the tourism tax might follow.

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Information from: Argus Leader, https://www.argusleader.com