'Clunker Tax' Update
August 28, 2009, 7:07 PM
Some South Dakotans have been surprised to find that the money they're receiving from the federal government for cashing in their clunkers is taxable in South Dakota. KELOLAND News first told you about the excise tax earlier this week.
Minnehaha County Treasurer Pam Nelson told KELOLAND news about the surprise. She's received several phone calls since the story aired questioning whether she was right and whether she's knocking the federal program.
“But I didn't say it wasn't a good deal, because it was. Because if you got $4,500 from a car that's not worth $4,500, it's still a good deal even if you have to pay $120 tax,” Nelson said.
The tax is necessary in South Dakota because state law requires taxes on the purchase price and government rebates. That means you can expect to pay three percent on the government's rebate when paying for taxes and licenses.
© 2009 KELOLAND TV. All Rights Reserved.
8/25/2014 2:34 PM
The CEO of Sutton Bay Resort in central South Dakota died after rolling his 2014 Polaris Ranger late Sunday night.
8/24/2014 10:43 AM
31-year-old Bridget Franzen failed to report to a work release job on Saturday, August 23.
8/27/2014 10:54 AM
Faith Rasmussen, 21, and her 55-year-old mother Theresa Rasmussen admit they were bringing marijuana from California to South Dakota and distributing ...
8/27/2014 5:48 PM
Her boyfriend was killed during a botched robbery in December in northwest Sioux Falls. Faith Rasmussen and her mother, Theresa, have now pleaded guil...
8/26/2014 11:31 AM
Authorities in northwest Iowa are investigating a serious crash involving a car and a school bus.