Tourist Season is Here!
Finally, after what seemed to be the long winter (like the one Laura Ingalls Wilder wrote about), winter is over. Marcia and I had the opportunity to attend the awards banquet for the Hill City Chamber of Commerce. It was held at the Homestead, part of the Prairie Berry complex. The guest speaker was James Hagen, Secretary of Tourism. If you ever get a chance to hear Sec. Hagen’s presentation, it is well worth your time. He and his staff have the passion and desire necessary to put South Dakota on the map for the nation’s vacation destination.
How is our State Department of Tourism funded? We pay a tourism tax of 1-1/2 cents. This money funds the 13 million of the 16 million for this department. The other 3 million comes from Deadwood Gaming. No other monies are used, and no monies come out of the General Fund.
Two years ago, a bill was introduced to take the 1-1/2 cent tourism tax down to 1 cent. To counter this, we amended this bill, raising the tourism tax to 2 cents. Boy oh boy! It was in no time just fine with everyone to leave everything alone at 1-1/2 cents. Funny how that worked.
For our district 30, (Fall River, Custer and Southern Pennington Counties), 2 cents would be a huge benefit. Statistics show that for every dollar the Department of Tourism spends, it brings back 4, so it would be a good return on an investment.
What does tourism do for South Dakota? Listed are some of the economic impacts:
Number of visitors to SD: 14.1 million, of that approx. 3 million visit Mt. Rushmore.
Total visitor spending: $3.98 billion
Tax revenue generated: $298 million
Tourism spending supports 9% of all jobs in SD. The number of jobs supported: 54,723
The amount each household in SD would need to be taxed to replace the traveler taxes received by state and local governments would be $865 per household.
In summary, the 1.5 cent tourism tax applies to the gross receipts of
-hotels and lodging places
-campgrounds
-car rentals
-recreation vehicle rentals
-recreational services
-spectator events
-visitor attractions
-visitor intensive businesses
The tourism tax is charged all 12 months of the year except for visitor-intensive businesses. Here, they’re charged only in the tourism months of June, July, August, and September. A couple examples would be a T-shirt shop and a souvenir shop.
So, put on a happy face and be thankful we live in the best part of SD. Always put up your “Tourists Welcome” sign.
To the citizens of District 30 and to the men and women in uniform, in honor of all who served, in respectful memory of all who fell, and in great appreciation to those who serve today, Thank You, for giving me the opportunity to serve you.
Tim R. Goodwin, District 30 Representative
Facebook: Goodwin In The House

