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Town told to answer state request for back sales taxes; trustees say records subpoenaed
Summary
The Department of Revenue is seeking back sales taxes for 2016–2018; trustees said the water/computer records were subpoenaed and only annual audit reports remain, and directed staff to gather documentation to clarify liability and interest/penalties.
The Buffalo Gap Board heard from the chair that the South Dakota Department of Revenue contacted the town seeking back sales tax for prior years.
Chair (speaker 1) said the department is looking for back sales tax liabilities for 2016 ($16,005.84), 2017 ($17,002.58) and 2018 ($12,020.00), and that the town—s detailed records are incomplete because the water computer and some financial files were subpoenaed during an investigation. “The only records that we have is what was submitted in the annual reports,” the chair said, noting the town will need to determine interest and penalty amounts before responding.
Trustees questioned whether the reported sanitation/sales entries reflected true taxable sales or expense entries and whether past finance officers filed and remitted properly. Several board members said the figures reported to state auditors look odd and must be reconciled with hard-copy records. One trustee said the town will "fight" inappropriate assessments but members also urged cooperation to resolve surprises from the state.
What the board will do next: staff will gather the annual-report figures cited by the state, ask the Department of Revenue for itemized calculations of interest and penalties, and report back at a follow-up meeting. No binding motion to pay was recorded at this meeting; chair framed the update as informational.
