State tries to classify Churches as businesses ...

     The Department of Revenue wrote a letter in May, 2005 to the churches in South Dakota instructing them to submit applications for business licenses in order to facilitate payment of use taxes, which is a tax, comparable to a sales tax on instate purchases, on items and services purchased from vendors who didn't have an oblgation to charge the sales tax to the churches for the goods and services.

     The following articles were written in response to this attempt.  After meeting with the Association of Christian Churches of South Dakota and conferring with their advisors, the Department changed its position on requiring churches to submit the application for business licenses.  The churches were informed that they are still obligated to pay sales and use taxes on purchases of goods and services after July 1, 2005, but that new payment procedures would be implemented starting July, 2006 for the previous year.

Business Sales Tax License
Money Is Not the Issue
Licensing Requirements Changed