SIOUX FALLS, S.D. (AP) — South Dakota's governor has suspended the enforcement of a sales tax on organizations that give food to the needy.
About 275 nonprofits on Oct. 1 were supposed to start paying an until-now unenforced sales tax on handling fees they pay to the distributor from which they obtain food. Gov. Dennis Daugaard has extended the date to March 1.
The move will give the governor and state legislators time to study the issue.
The state law has been on the books for decades, but it wasn't until last year than an audit discovered the nonprofits needed to pay the tax. The nonprofits can apply for tax-exempt status, but some say that process can be a hassle and not worth it for smaller organizations.
Copyright 2011 The Associated Press.
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