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Number Painter Could Be Dodging Sioux Falls and South Dakota Sales Tax

Number Paint Flier
(Dan Peters/KSOO)

Just to be sure, the flier that was taped to your mailbox soliciting address number painting on the curb is not a scam.  It is a legitimate business that Vincent Harris of Utah is using to pay his way through college.  He is making his way through Sioux Falls and has had some success in providing his service.

He does not need a peddler’s license because he is not going door-to-door to solicit business.  Harris simply tapes a flier to the mailbox and allows homeowners to either contact him or leave confirmation of work to be completed.

However, the budding entrepreneur may be forgetting one step…paying sales tax.  Anytime you provide a product or service within South Dakota you are subject to sending 4 percent of the sale to the state plus additional tax required by the municipality.

Jessie Schmidt
(Jessie Schmidt of Better Business Bureau)

According to Jessie Schmidt of the Better Business Bureau office in Sioux Falls, Harris has not filed with the state of South Dakota or with the city of Sioux Falls with a valid tax identification number.  Schmidt says even though the purpose is noble, there must be some sort of interaction with the South Dakota Department of Revenue.  Harris could write off his materials needed for doing business as an expense at the federal level.  Nonetheless, he also has to interact with the other levels of government as well.

 

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