Shakopee mdewakanton sioux community

 

Community Members

Economic Influence

Economic Impact of the Shakopee Mdewakanton Sioux Community

Tribal governments raise revenues through a variety of means, similar to how states raises revenue through the lottery or cities through property taxes. Income from tribal enterprises is used to provide services and infrastructure to Community members and their families and to fund SMSC government operations. The SMSC tribal government constantly seeks ways to direct proceeds from tribal government enterprises, including gaming, back into the reservation and surrounding communities.

The SMSC is a powerful economic influence in the areas of employment, vendor purchases, construction, and voluntary payments to other governments. For example, more than $171.6 million is made in payments to vendors anually for goods and services. In addition, the annual payroll is $154 million for tribal enterprises and the tribal government, and $24.7 million is spent in annual benefits for employees.

Here are more examples of the SMSC’s positive economic influence: 

Voluntary Intergovernmental Payments

Federal law stipulates that state and local governments must provide certain services to Indian tribes located in their area of jurisdiction. Even so, the Shakopee Mdewakanton Sioux Community makes voluntary annual payments to city and county governments to cover the cost of services provided by those local jurisdictions to the tribe. The SMSC has voluntarily paid Scott County and other jurisdictions $14.4 million over the last ten years for services even though this is not required by law. Some of the SMSC payments have funded road projects, park improvements, wastewater and sewer fees, property taxes, transit and SCALE studies, emergency sirens, and police and fire protection.

Each Year The SMSC Voluntarily Pays

  • $380,000 to the City of Prior Lake for services
  • $280,000 to Scott County for services

Over the past four years (2008-2012) the SMSC made
the following intergovernmental payments

  • $1,470,000 to the City of Prior Lake for police and fire services
  • $1,050,000 to Scott County for services
  • $2,481,803 in property taxes on fee lands
  • $123,782 for the SCALE Joint Training Facility
  • $265,215 for County Road 83 overlay
  • $1,810,531 for County Road 83 reconstruction to a four-lane roadway
  • $614,715 to the Metropolitan Council for waste water treatment
  • $392,989 for the County Road 82 reconstruction project
  • Paid another $5 million for other intergovernmental projects
  • Paid more than $7.5 million for local county and city road projects
  • Paid $12.7 million to local governments for services
Employment

Shakopee Mdewakanton Sioux Community significantly impacts the county and state by employing 4,118 employees in both gaming and non-gaming enterprises.

The SMSC is the largest employer in Scott County, providing one in ten jobs equal to 10% of all Scott County jobs. Employing more than four times as many employees as the next largest employer in the county, the SMSC employs about 1,000 more employees than the next four top employers in the county combined.

Taxes Paid

As a government, the SMSC can only be taxed by another government under very specific circumstances. Yet the SMSC, its employees, and its members do pay taxes. The SMSC withholds and matches federal taxes out of employee paychecks. Tribal members also pay federal income taxes each year.

Annually the SMSC pays:

  • A matching $10.8 million in federal FiCA and Medicare taxes.
  • $680,000 a year in property taxes to Scott County on the land it owns in fee status.
  • More than $1.75 million in sales and excise taxes on cigarettes, fuel, and liquor to the State of Minnesota.

Scott County residents who are employed by the SMSC each year pay:

  • More than $6.3 million in federal taxes.
  • $4.0 million in Social Security taxes.
  • More than $2.7 million in state taxes.
  • $973,758 in Medicare taxes.

Annually all SMSC employees pay:

  • More than $13.3 million in federal taxes.
  • More than $5.9 million in state taxes.
  • $8.7 million in Social Security (FiCA) taxes.
  • Nearly $2.0 million in Medicare taxes.

A total of $13.9 million in income related taxes are paid for and by SMSC employees who live in Scott County.

Benifits to Scott County

In addition to property tax payments, Scott County benefits in other ways, including:

  • The SMSC employs 1,842 Scott County residents.
  • Annual payroll of $71.6 million for employees who reside in Scott County.
  • Annual payments totaling $11.1 million are paid for goods and services to 160 vendors located in Scott County.
  • The SMSC has paid $2,957,383 to Scott County over the past 15 years in property taxes on land it owns on the reservation which is not in trust.
Construction

The SMSC has spent millions of dollars on construction projects for its tribal government, infrastructure, and economic enterprises:

Projects funded include a Water Reclamation Facility, the Dakotah! Ice Center, The Meadows at Mystic Lake, the Wellness Center, Koda Energy, two Water Treatment Plants, two Reverse Osmosis systems, a water well, Public Works Building, Mdewakanton Emergency Services Fire Station, Mazopiya, Tiowakan Spiritual Center, Playworks, Dakotah! Sport and Fitness, the Playworks LINK Event Center, Dakotah Meadows RV Park, Dakotah Meadows Mini Storage, South Metro Federal Credit Union building, water towers, hotel towers, parking decks, and renovations to gaming and other existing properties.

Total construction spending since 1990 is more than $738.9 million.

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