publications  |  resources  |  SD development organizations  |  members-only log-in   605.978.2804
 
   
   financing  |  training  |  investors & contributors  |  directors & staff  |  contact us  |  home  

         


 Opportunity Network
  Opportunity Roundtable
  Opportunity Roundup
  SD Rural Enterprise Google group
  From the desk of...
   
 Financing Programs
  Dakotas America LLC
  Capital Investment Fund
  Community Capital Fund
  First Children's Finance
   
 Training Opportunities
  Creating a Value-Added Community
  Growing Resources and Opportunity from Within
  LeadershipPlenty SD
  Trade Secrets
  Other opportunities
   

South Dakota Rural Enterprise Opportunity Roundup - rural community tax base

Isn't the sales tax the primary source of revenue for the local community? Schools are funded with property taxes. Most of the income tax goes to federal and state levels.

  • Sales taxes are the primary form of tax base from which local governments fund operations and capital improvements.

  • Not all local governments have sales tax (like Montana). Property taxes become the base for funding schools, the city and the county. Other sources, for example, a casino tax, may provide revenue.

Why would rural residents shop out of town? Don’t they understand that shopping locally is better for their small town economy?

  • For many, shopping out of town is not about getting a better price, it’s about having something to do. An outing from their small community becomes an activity, a diversion. While they’re out, they spend the extra dollars on groceries, gas, a meal out, etc.

  • Most folks do not drive 30+ miles just to save $5.00 but rather decide to save $5.00 while they are out-of-town doing fun and different activities.

  • This dynamic has some implication towards the types of new businesses and recreation a town should help develop that are most likely to keep residents home on a weekend.

  • What made Wal-mart so successful in rural areas (which is where they positioned their stores and grew the empire) is largely what they have abandoned and what rural shoppers want - not just to shop - but to be entertained. They (the shoppers) want something TO DO. Wal-mart used to have petting zoos, etc. outside their stores to attract shoppers- shopping was fun. And people flocked to the stores.

  • The most successful rural stores I see not only are competitive on price - but offer something that the bigger shops can't. It is more about the experience than the price. For example, you can get grapes cheaper from Chile than the local farmer. But if those grapes make an award winning wine, and maybe even a setting with a view of the Rocky Mountains at sunset where you can enjoy a glass while they pack your case to take home - then you have something that can compete. Then add the next door neighbors cheese and organic tomatoes and basil from the farmer down the road and you have some options. Go deep into one niche and be better or offer something truly unique.
  • What do you have in your town that no one else can offer? What can you do better than anyone else around?

Do you think that citizens of small towns realize the fundamental importance of local enterprise (sales)?

  • Rural business owners identify that the primary obstacles to the growth of their businesses, is that so many local residents purchase goods and services out-of-town, usually in the nearest community with better dining, entertainment and selection.

  • If price were the issue then residents would do well to shop at home first, often finding prices equal or better than those in the big town.

  • Give local vendors a chance to show that their prices are often close to if not better than out-of-town prices. Shop locally.

If we presume that the majority of rural residents would be open to information about how their economy works and how they can personally pitch-in to help keep their community viable through personal buying habits, how do we reach them? What or who will they take the time to listen to causing them to take significant action?

 

Opportunity
Roundup

629 S. Minnesota Ave.
Suite 201
P.O. Box 2282
Sioux Falls, SD

ph 605.978.2804
email
     
       
   


publications · resources · SD development organizations · member login · contact
financing   ·    training    ·    investors & contributors   ·   directors & staff   ·   home