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Officials Urge Crackdown On Tax Evaders At Rally

July 27, 2014, 10:21 AM

Officials Urge Crackdown On Tax Evaders At Rally

Sturgis city officials are urging the state to crack down on vendors at the annual motorcycle rally who fail to pay taxes on sales.

All vendors who operate during the rally are required to get a license with the state and pay 5.5 percent of their total revenue in state tourism and sales taxes. Temporary merchants within the city limits are required to get a similar license with the city and pay a 2 percent tax on their total sales revenue.

Sturgis city manager Daniel Ainslie says that it's easy for vendors to intentionally under-report their sales or not collect and submit the required tax. Many of them are cash-only businesses.

Sturgis officials would like to see the state conduct more spot-checks of vendors.

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