Following is information provided by the Department of Revenue and Regulation.

DEPARTMENT OF REVENUE AND REGULATION                            PHONE:                                     (605)773-3311

445 E. CAPITOL AVENUE                                                                                                                             FAX:                                (605) 773-5129

PIERRE, SD 57501-3185

For immediate release: Monday, April 16, 2007

For more information:  Jan Talley, Director, or Jane Page, Assistant Director Business Tax Division, (605) 773-3311

Transient Vendors: Get the Facts Before You Buy

(PIERRE, SD) — Transient vendor season is beginning in South Dakota, a time when out-of-state vendors roll into the state to sell their products and services. While many of these vendors are legitimate, the South Dakota Department of Revenue and Regulation says there are common sense steps the public can take to ensure the vendor is reputable before deciding whether to do business with them.

TI you’re considering hiring a person to provide repair or construction services, the department advises you to:

•     Ask for a price quote, in advance, in writing.

•     Question the contractor as to whether they have a permanent address and telephone number, and don’t assume that if the information they provide is local, they’re a local business. Often transient vendors will have business cards printed with a local mailing service or motel address and telephone number.

•     Ask for a list of local references and check them before making a decision.

•     Ask if the contractor has workman’s compensation and general liability insurance.. If they’re not properly insured, the homeowner may be liable for accidents that occur on the property.

•     Be careful about paying for work in advance and before making final payments, make sure the transient vendors have paid their local suppliers. You as the customer may be held liable for unpaid material bills.

•     Make sure you’re completely satisfied with the work before paying the bill and don’t pay more for the job than originally quoted unless you’ve given written approval for the additional work or cost.

Out-of-state vendors often travel to South Dakota to sell items like fruit, seafood, meat packages, paintings, magazine subscriptions, rugs, t-shirts, sunglasses, household cleaners, furniture, stuffed animals, and asphalting and roofing services. Asking the right questions when approached by these vendors can help you avoid making a purchase you may regret:

•     Question the salesperson about the product, warranties. guarantees, etc.

•     Get something in writing with the company’s name, address and phone number.

•     Ask to see their current South Dakota tax license. State law requires all persons selling products or services to have a current South Dakota sales or contractors’ excise tax license. To verily if the license is valid, call the Department’s toll-free helpline at 1-800-829-9188.

if you have doubts about the vendor or think you may have been the victim of a scam, call your local police department or county sheriff’s office immediately. Be prepared to give as much information as you can about the vendor including the name of the company and salesperson, company address and telephone number, and make, model and license number (if possible) of the vehicle the vendor was driving. Without tips from the public, law enforcement officials may not be able to catch illegal vendors before they move on to the next community.

For more information on transient vendors, contact the South Dakota Department of Revenue and Regulation’s toll-free helpline at 1-800-829-9188.

    As you know, this is the time of year when transient vendors begin arriving in South Dakota to sell their goods and services. Many of these merchants are legitimate businesses who comply with our state’s laws. Unfortunately, some of them are not reputable and pose a potential fraud risk to the citizens of your area.

The South Dakota Department of Revenue & Regulation has issued the attached press release to media and business groups statewide to assist the public in making informed decisions as to whether or not to do business with these individuals. We’d also like to take this opportunity to reacquaint you with South Dakota’s tax laws concerning transient vendors and ask for your help in curtailing fraudulent activity by these individuals.

Under South Dakota law, any business which intends to sell any kind of tangible personal property or service or perform construction services in the state must have a current South Dakota tax license. Anyone found guilty of engaging in business without a valid South Dakota tax license after having been notified in writing may be charged with a Class 6 felony.

There is no fee for a tax license although depending on the nature of the vendor’s business, they may be required to post a bond or security. License applications are available at all Department of Revenue & Regulation offices statewide, from our website at www.state.sd.us/drr, or by calling our toll-free helpline at 1-800-829-9188. if you feel your officers would benefit from a seminar or other instruction on transient vendors, Revenue Agents from your nearest Department of Revenue & Regulation office are available to give presentations. To arrange for a speaker, please call the toll-free helpline at 1-800-829-

9188.

Our department is advising citizens encountering unlicensed or suspicious transient vendors to report them to local law enforcement, either on the city or county level. Transient vendors tend to move quickly from community to community, and decisive action is necessary in investigating suspicious vendor activity, If you have any questions on transient vendors or the department can be of assistance in any way regarding this issue, please feel free to contact our office at 1-800-829-9188. Thank you for your assistance.

Sincerely

Jan Talley, Director, Business Tax Division