Two state agencies are warning South Dakotans to be wary of transient vendors.
Attorney General Jason Ravnsborg and the state Department of Revenue caution people to make sure vendors are legitimate before doing business with them by asking for proof of a South Dakota business tax license. He says the majority of the transient contractors are honest business people, but there’s always a handful seeking to take advantage of people.
Here are some suggestions to keep in mind when dealing with a transient vendor:
- Homeowners should look for a reliable contractor with a proven track record who readily offers credentials.
- Ask for references. Legitimate vendors should be more than willing to provide a list of satisfied customers to verify their work.
- Ask for the details in writing.
- Ask for sales tax or contractor’s excise tax license.
- Obtain a local permit, if required.
- Ask for a price quote in advance and in writing.
- Question the contractor about a permanent address and telephone number. If the information they provide is local, do not assume they are a local business. Transient vendors often have business cards printed with local mailing services or motel addresses and telephone numbers.
- Ask for a list of local references and check them before making a decision.
- Be careful about paying for work in advance. Before making final payments, make sure transient vendors have paid their local suppliers or you may be held liable for unpaid materials.
- Pay by check. Avoid on-the-spot cash payments. The safest route is to write a check to the contracting company not an individual.
