"Remember to ABC, always buy Chamber."
This phrase has always resonated with me. Not only is it easy to remember, it also bears significant impact. As a chamber member, I was always encouraged to consider my fellow members' products and services first. Now as a staff member, I see what a difference buying local can make.
During the holidays, ABC takes on a special meaning. It means supporting a family whose dream is to own their own business. It means supporting your local economy by keeping your dollars close to home. It means building your community by supporting locally-based employers. It means keeping your sales tax dollars in your home state to reinvest in our schools, health, human and social services, as well as many other state programs. As your holiday shopping mode peaks, please remember your choices can make a huge difference in our community and our lifestyle.
Choose to support a locally-owned business. Purchase and promote goods and services from a business that is both owned and located in your community. Every local business owner is pursuing their dream: to chart their own path, to create a lifestyle for their family, to provide something new and exciting to their town. Locally-owned businesses create the culture that becomes our community; they are the identifiers that make the Sioux Falls area unique. These entrepreneurs create jobs and are more likely to use local services to support their business: local banks, suppliers and vendors. Civiceconomics.com compiled results from nine different studies and found 48 percent of every dollar spent in an independent business is reinvested in the local economy, directly, indirectly and induced.
Direct impact is local spending to operate the business, for example utilities, equipment, inventory and payroll. Indirect impact is businesses spending at other area businesses. Induced impact is the additional impact employees and owners have when spending their income locally. This is called the local multiplier effect.
Choose locally-based businesses. A locally-based business is any business that has a physical presence, or storefront, in the community but is headquartered elsewhere. These businesses contribute to the community with an indirect and induced impact. Fourteen percent of every dollar spent is reinvested in our local economy. This may seem smaller, but due to the size of these businesses, the overall contribution to our community is significant.
Keep sales tax dollars in our community. The South Dakota sales tax rate is 4.5 percent. Both sales and use tax comprise over 62 percent of the state's general fund receipts. Sioux Falls has a general tax of 2 percent, with another 1 percent for lodging, alcohol, eating establishments and admissions. Choosing to spend locally is an investment in your basic health and human services, police, fire rescue, schools and the many resources our state and local government provide.
If you must buy online, you can be encouraged to know the 2016 remote seller tax law went into effect November 1 of this year. The enforcing case is better known as South Dakota v. Wayfair, Inc. Your out-of-state online purchases will now bear a more positive impact than in days past as South Dakota sales tax will now be applied to your purchases.
When you buy local, or locally, you keep South Dakota and the Sioux Falls area strong. Your investment and attention to our local economy is what makes our home a thriving and vibrant place to raise a family, build a business and create satisfying life. And just think, it's as easy as ABC...