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:
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
Over the past four years (2008-2012) the SMSC made
the following intergovernmental payments
Shakopee Mdewakanton Sioux Community significantly impacts the county and state by employing 4,200 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.
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:
Scott County residents who are employed by the SMSC each year pay:
Annually all SMSC employees pay:
A total of $13.9 million in income related taxes are paid for and by SMSC employees who live in Scott County.
In addition to property tax payments, Scott County benefits in other ways, including:
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.