SIOUX FALLS, S.D. (AP) - About 275 organizations in South Dakota
that give food to the needy might be forced to pay a
long-unenforced sales tax.
At issue are handling fees that agencies pay to the
organizations that supply them with food. Business Tax Division
Director Jan Talley says an audit late last year discovered the fees
weren't being taxed. They will be now, starting Oct. 1.
Talley says many of the affected organizations can apply for
tax-exempt status. But Sioux Falls Pastor Jeff Hayes says that
isn't a simple undertaking, and he's pushing the state to reverse
the tax decision. He says it's "outrageous" to put barriers in
the way of those who help feed the hungry.
Gov. Dennis Daugaard says an exemption to the law would require
legislative action.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
AP-NY-08-08-11 0821EDT
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