South Dakota House Committee Passes Bill to Permanently Extend ‘Tax Holiday’

• South Dakota House committee passes bill to make the 0.3% tax reduction permanent
• The reduction decreased the state sales tax from 4.5% to 4.2%
• Republican Rep. Chris Karr introduced the bill to remove the sunset provision on the “tax holiday”
• The predicted decrease of $104 million has not yet occurred, with only a $16 million reduction in the first six months of the 2024 fiscal year
• Gov. Kristi Noem supports making the tax cut permanent
• Nathan Sanderson, executive director of the South Dakota Retailers Association, spoke against the repeal of the sunset provision
• Sanderson mentioned that the revenue increases are due to federal money and inflation
• Opponents warned of a ballot measure removing the sales tax on food as a reason to keep the 2027 sunset in place
• Republican Rep. Sue Peterson mentioned good fiscal reasons to make the tax cut permanent and the implied promise of a rate decrease once remote sales were taxed.

Source: dakotanewsnow.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---