Tax Relief

South Dakota gross sales tax relief dies in Legislature

Joint session of the SD Legislature following Gov. Kristi Noem’s State of the State Address, 1/12/21. Screen capture from SDPB.

PIERRE, SD (AP) – There will be no sales tax relief for South Dakotans.

South Dakota Senate Republicans have rejected a proposal from the House to cut the sales tax by half a percentage point.

The House pushed the proposal through this week on a narrow vote.

gov. Kristi Noem urged them to take a more cautious budgeting approach and not siphon off one of the state’s largest revenue sources.

The proposal would have cut the 4.5% sales tax to 4% over the next two years, representing an estimated $150 million in annual state revenue.

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