Department of Revenue Prof essio 11al . Dependable. Acco11111able - - PDF document
6 - Tax Committee Presentation - 2016 - DOR Saturday, January 16, 2016 9:44 AM South Dakota Department of Revenue Prof essio 11al . Dependable. Acco11111able ... in partnership with South Dakota 1 ~"c Dep Andy Gerlach I Secretary I
6 - Tax Committee Presentation - 2016 - DOR
Saturday, January 16, 2016 9:44 AM
Prof
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Dep
Administration
Toni Richardson Director
Le1al Andyfercel
Director Secretariat
Andy Gerlach I Secretary David Wiest Deputy Secretary
Audits I
Business Tax I Motor
Vehicles
Rachel Heam Dou1 Schinkel
Lisa Weyer
Director Director Director Norm Lln1le SDlottery I Executive Director
Commission on Gamine I
Larry Eliason E>tecutlve Secretary
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Michael Houdyshell Director 2
Type of Tax
FY2014 FY2015
Sales & Use Tax $833,618,413 $840,849,383 Fuel Excise Tax $156,736,026 $169,843,878
A 0.5% sales tax
Lottery $106,221,025
$1 12,074,219
increase equates
Contractors' Excise Tax $90,409,495 $100,116,439
to about $107.4
Special Taxes $112,707,544 $94,703,283
Million
Vehicle Excise Tax $77,353,826 $82,593,933 Tourism Tax $10,671,323 $11,413,097 Deadwood Gaming $8,885,345 $8,993,841
South Dakota Iowa Minnesota Montana Nebraska North Dakota Wyoming Gas Tax (cts per gallon) $0.280
$0.210 $0.285 $0.270 $0.256 $0.230 $0.230
Sales Tax (%) 4.000%
6.000% 6.875% 0.000% 5.500% 5.000% 4.000%
Highest Income Tax Rate(%) 0.00%
8.98% 9.85% 6.90% 6.84% 3.22% 0.00%
Source : U. S. Burea u of the Census and Bu rea u of Econom ic Analysis
Cigarette Tax (per pack) $1.53
$1.36 $2.83 $1.70 $0.64 $0.44 $0.60
Per Capita Tax Burden $1,886
$2,662 $4,238 $2,593 $2,592 $8,282 $3,876
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75th Annual Sturgis Rally
Hall and Buffalo Chip Campground New GIS Technology and real-time connectivity to DOR's tax accounting system
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Use tax is the same as sales tax
sales tax but due when sales tax has not been collected.
"If you didn't pay
4% ... you owe 4%." Senator Jeff Monroe, January, 2016.
Use tax is paid to the state by the 'user' when the appropriate sales tax was not collected. Online sales increased from 2014 to 2015 by approximately
14°/o resulting in an estimated loss of tax revenue of $31.8M
to the State and $15.1 M to municipalities
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ship wine directly to SD consumers As of January 14, 122 wineries have been licensed Wineries must obtain a license, remit both sales and alcohol taxes and file returns/pay taxes electronically
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Audit Selection Methods
Leads 1099-K Past Productive Audits Points Systems Analytics Midwest Border States Business Size
Description
Invoices found in other audits, the news, building permits, and construction contracts. This selection method identifies taxpayers with known issues instead of assumed issues detected using other selection methods. The IRS shares information with us about a business's credit card sales. This data is compared to a taxpayer's reporting to identify discrepancies. Taxpayers with a large audit assessment who do not correct their reporting habits are typically identified for a follow up audit of the tax periods immediately succeeding the first audit. Each taxpayer license has points assigned to it based on activities indicating risk. The higher total number of points, the more likely there are issues with the license. Analytics are used to identify anomalies within an individual taxpayer's reporting. If a taxpayer's reporting has an unexpected change, they may be audited. The division receives quarterly reports from neighboring states of audits with assessments greater than $25,000. If a taxpayer is thought to have a similar issue within our state, that license will be audited. The department routinely audits the 350 largest taxpayers in the state.
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SOUTH DAKOTA
Did you know?
LOnERY
The South Dakota Lottery provides money for things like education, highways and the environment. Every dollar earned is reinvested in South Dakota. South Dakotans are winning! Susan Nickle recently won $6.7M on a Hot Lotto ticket purchased at Johnson Siding in the Rapid City area. The South Dakota Lottery contributed $112 Million to the State last year, second only to sales and use tax.
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2016
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