March 14, 2017 • Page 2 shop online at www.missourivalleyshopper.com Dave Says By Daris Howard Beware of Overspending No Magic Number Dear Dave, I know you’re big on bargains and Dear Dave, saving money. How do you feel about I’m 26, and I’ve been running my own business as sole propriewarehouse clubs, like Costco and tor for a year and a half. My gross revenues are about $94,000, and Sam’s Club? my personal net worth is around $68,000. Is there an asset level Jessica you recommend reaching before moving to LLC status? Meghan Dear Jessica, Dear Meghan, We have both of those in our neigh- There’s not really a magic number for this kind of thing. In your borhood, and I’m a big fan. There are case, I wouldn’t go to the trouble for an LLC right now. You don’t definitely some good buys and great need the hassle of extra paperwork and the expense of processbargains to be had in places like that. ing and filing fees. Just make sure you have normal, liability-type To be honest, my wife is probably a insurance in place. That shouldn’t cost a lot of money. bigger fan than I am. I suspect we save The main reason you would consider shifting to an LLC is if you more money from her trips than mine had reached a point in life as a business owner where you were Dave to those spots. afraid you might have a target on your back. By that, I mean you I will advise you to watch your spending would want protection in the event of a lawsuit if your company carefully in warehouse clubs. Most people had grown to sizable proportions and you had begun to accumuoverbuy in situations like that, especially late substantial personal assets. those of us who are spenders by nature. Believe it or not, I’m At this stage I don’t think anyone’s going to bother you. a spender by nature. To this day, if I’m not careful, I’m still bad — Dave about buying things I don’t need – or too much of the things I do need – in warehouse clubs. Have fun in there, and make sure you find some steals on smart things you can stock up on. Just don’t go crazy and wreck your * Dave Ramsey is America’s trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven bestbudget by overspending! selling books, including The Total Money Makeover. The Dave — Dave RAMSEY Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. Retailers Welcome Court Decision On Tax Fairness Law Pierre, SD – The South Dakota Retailers Association (SDRA) today welcomed a summary judgment by Circuit Court Judge Mark Barnett regarding South Dakota’s lawsuit against three large online retailers. SDRA says the ruling is precisely what is needed to move South Dakota one step closer to tax parity between South Dakota brick and mortar stores and giant out-ofstate companies. Although the ruling resulted in the entry of a judgment in favor of out-ofstate online retailers, Judge Barnett’s Order specifically recognized that he was bound by existing United States Supreme Court precedent “…even when changing times and events clearly suggest a different outcome; it is simply not the role of a state circuit court to disregard a ruling from the United States Supreme Court.” This week’s decision by Judge Barnett is an important and necessary step toward U.S. Supreme Court reconsideration of now-outdated tax precedents set by the Court in cases from half a century and a quarter of a century ago. Last year, South Dakota passed a law, SB 106, requiring large out-of-state companies that sell goods into the state to collect and remit South Dakota sales tax on those purchases. The law applies only to businesses whose sales in the state exceed $100,000 annually, or that make 200 or more separate transactions in the state in a year. Following passage of SB 106 last year, the State of South Dakota filed a lawsuit seeking a determination that the state may validly require out-ofstate retailers that conduct significant business in the state to collect and remit the state’s sales tax on purchases made in the state, even if they do not have a physical location in South Dakota. The state’s lawsuit was filed one year after U.S. Supreme Court Justice Anthony Kennedy recognized in his concurring opinion in DMA v. Brohl that, “[t]he Internet has caused far-reaching systemic and structural changes in the economy” so that “a business may be present in a State in a meaningful way without that presence being physical in the traditional sense of the word.” Justice Kennedy called on the "legal system [to] find an appropriate case for this Court to reconsider" its prior decisions in 1967 and 1992. When SB 106 was enacted last year, the bill itself and the State of South Dakota acknowledged that only the U.S. Supreme Court can overturn the 1992 Quill v. North Dakota decision that restricts states from requiring remote sellers that do not have a physical presence in the state from collecting the taxes already owed on those purchases. To reach the U.S. Supreme Court, however, the case must first go through the South Dakota circuit court and the South Dakota Supreme Court. Today’s ruling checks off that first step. The South Dakota Retailers Association played a key role in the discussions that led the state to pass SB 106 and to file suit against out-of-state online retailers. "Right now, giant out-of-state conglomerates are able to avoid collecting and remitting taxes only because of a loophole that was created before there was an internet, and before e-commerce,” said SDRA Executive Director Shawn Lyons. “Online commerce is expanding dramatically, and the Contradictions I walked into a local community library and saw a sign. It said, “If you are illiterate, call . . .” I couldn’t help wondering, “If a person was illiterate, how could they read the sign and know that they were supposed to call?” I pointed that fact out to the librarian, and she laughed. She said she had never thought about it. She decided she would call the number and mention it to them. This reminded me of some other contradictions I have seen over the years. Some years ago, I purchased a new, external, portable CD drive for my Windows 98 computer. The CD drive attached to the printer port on the computer. When I received the drive, I opened the package and read the instructions. They said to connect the drive, then load the software into the computer to make the drive work. You guessed it. The software was on a CD which I couldn’t use until the software was loaded on the computer. Recently our internet service quit working. I tried everything on my end to get it to work, but to no avail. Finally, I called the internet provider and asked if there was a problem on their end. The technician sounded exasperated. “I am so sick of people calling,” he said. “I sent out an email telling everyone that our system was down. I wish people would check their email.” “And how are we supposed to do that when our internet is down?” I asked. Suddenly the technician was very quiet. He sounded sheepish when he finally answered. “I never thought of that.” But the biggest contradiction I have probably seen was years ago when the internet was new. I had worked for a government contractor doing programming of internet related technologies. This was some time before the internet became widely known. Later I became the internet director at the university. Because of my experience, I was contacted by a book company editor and asked if I would review a new type of electronic book they were releasing. They were willing to pay me five hundred dollars, so I agreed. When I received the material, it said that the book was titled, How to Use the Internet. There was a simple information page which said, “Get on the internet and go to . . .” It had the URL listed there. I got on the internet and went to the website. The first chapter was all about how to get on the internet and how to go to a website. I didn’t read more than the first chapter. The contradiction in it drove me crazy. When I wrote my review, I asked, “If a person doesn’t know how to do the things in the first chapter, how can they get on the internet to read the book?” In all, I only spent about a half hour. I felt guilty about the short amount of time for that amount of money, so I told them they didn’t have to pay me. A couple of weeks later, I received a check from the editor, along with a letter. It said, “Thank you, Mr. Howard, for your review. We had that book reviewed by about a dozen people within our company, and everyone thought it was amazing. I know it sounds crazy, but not a single reviewer considered how contradictory it was that a person would already have to know how to use the internet to access an online book about how to use the internet. I know you said I didn’t need to send the money, but you saved us from an embarrassing mistake, and that is well worth it.” Five hundred dollars for a half hour of work felt almost like a contradiction, too. But I decided if it was, it was one I could live with. tax inequity gap between in-state retailers and out-of-state online retailers is widening. We are encouraged that this ruling gets us one step closer to having the U.S. Supreme Court take another look at this crucial tax issue, and one step closer to tax fairness.” State Senator Gary Cammack, owner of Cammack Ranch Supply in Union Center, South Dakota and president of SDRA’s Board of Directors, agrees. “Only the U.S. Supreme Court can overturn the 1992 court decision, and Judge Barnett’s decision helps us move the issue along,” Cammack said. “Larger online retailers should play by the same rules as the small businesses on Main Street, and this ruling is one of the necessary steps in accomplishing that.” South Dakota Attorney General Marty Jackley also praised the decision. “South Dakota retailers should have a fair and equal playing field with other large out-of-state companies that have been benefiting from an outdated sales tax structure,” said Attorney General Jackley. “The South Dakota Retailers Association and their retail partners should be commended for their diligent work on this case and serving as a strong voice for South Dakota’s retail industry.” Lyons said it’s important to note that the law passed by South Dakota last year did not implement a new tax. “When South Dakotans make purchases, whether that’s in a store in their hometown or online from a company based in another state, the consumer has a legal obligation to pay taxes on those purchases,” he stated. “Kids got the kites up this morning down at the school“The law we passed in South Dakota in yard,” Dud said, slipping into his chair and flipping his cof2016 says the burden shouldn’t be on fee mug to the upright and fillable position in one smooth the customer, it should be the responmove. sibility of those huge companies to Doc nodded and spread jam on his toast. He likes grape. collect and remit the tax. When you get “Any special shapes this year?” down to it, this is just simply a matter “Didn’t see any,” Dud said. “Same old diamond shapes, of fairness all the way around.” mostly.” “Now back when I was a kid,” Herb chimed in, “we had box kites, too. Sometimes…” Doc grinned. “Never could make one of them. Too complicated. Just got those diamond ones, because they came SANDALS ARE ARRIVING! almost ready to fly.” “Saw on TV the other day,” Dud said, “they got these kites over in China that look like dragons. Real long boogers, you know. Wonder how they get those things in the air.” Find us on: “Ever notice how you never see anyone on TV flying 312 W 3rd Street boston Downtown Yankton kites in Iceland?” Steve said. Steve has never been to Iceshoes to boots footwear experts since 1915 605.665.9092 land, but he’d sure like to go. He reads up on it. A lot. “Wind blows over there in Iceland all the time.” “I heard that, too,” Dud said. “It might be,” said Doc, “that people in Iceland are too busy working to fly kites.” “Could be that,” Steve agreed. “Do you realize there aren’t any dinosaur fossils in Iceland?” Tina Schrage Professional Pet Groomer He waited. No one asked. “The reason for that,” he said, “is that the dinosaurs died off before Iceland was born.” 3205 Premier Circle, Yankton Loretta came by with the coffee pot. “How you boys doCurrently located at Countryside Bed & Biscuit ing today?” “Better than the folks in Iceland, I guess,” Steve said. “Doc says they have to work all the time.” Having coffee at the Mule Barn on any given morning can be an unusual educational experience. SPRING FEVER TINA’S PAW SPA 605.660.4019 DID YOU KNOW? 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