Sales taxes
Noem signs temporary tax reduction into law, vows to fight for permanent tax cut
After weeks of veto threats, Gov. Kristi Noem signed what some have called the “largest tax cut in state history” into law Tuesday. The move reduces the state sales tax from 4.5% to 4.2%, cutting an estimated $104 million from state revenues in the first year of implementation. But the tax cut has a sunset […]
Noem signs $7.4 billion budget despite previous threats
Gov. Kristi Noem signed the state’s fiscal year 2024 budget into law Monday, providing for increased funding to the “Big Three” state obligations and 100% tuition coverage for National Guard members, among other funding decisions. Noem had made veiled threats in recent weeks to veto the budget because legislators chose to pursue a different tax […]
Noem’s next move will reveal her level of tax-cut commitment
Will she or won’t she? After she signed the budget bill on Monday, that’s what South Dakota lawmakers have to be asking themselves right now as they wonder whether Gov. Kristi Noem will veto the state sales tax reduction they endorsed. At the end of the legislative session, lawmakers compromised on a state sales tax […]
Lawmakers approve temporary sales tax cut worth an estimated $104 million in first year
PIERRE — With just hours left in the last regular day of business in the 2023 legislative session, lawmakers compromised to approve what some described as the largest tax cut in South Dakota history. The plan would reduce the state sales tax from 4.5% to 4.2% for four years, saving taxpayers and costing the state […]
‘Biggest tax cut ever’? Depends on how you slice it — and on Noem’s reaction
Some legislators are describing the $104 million sales tax reduction they adopted Thursday as the “biggest tax cut in state history.” But is that true? The answer is complex. It might be more accurate to call the current proposal the state’s largest single tax cut in raw, unadjusted dollars. The qualifiers are necessary because of […]
House and Senate deadlocked on tax relief deal with time running out
PIERRE — Lawmakers have just one regular day of business left in the 2023 legislative session to pass a tax cut for South Dakotans – and they still haven’t reached a deal. Five options to reduce the state sales tax remain in the mix among leaders in the Senate and House of Representatives, ranging from […]
Lawmakers focus on general sales tax reduction, defeating other tax cuts
PIERRE — Gov. Kristi Noem’s grocery tax repeal bill lived for only 17 hours after it was revived Monday. The House rejected the bill Tuesday morning. An hour later, legislative leaders from the House and Senate killed the property tax rebate program the Senate revived last week, with a suggestion to take a closer look […]
Senate revives Noem’s grocery tax repeal in session’s final week
PIERRE – The House and Senate are playing tug-of-war on tax cuts, with three days left before legislators leave the Capitol. After the House of Representatives whittled numerous tax cut proposals down to just one earlier this session, the Senate has revived two major competing proposals – including the Gov. Kristi Noem-backed elimination of the […]
Legislative roundup: Tax talks go topsy-turvy, and the rest of the week’s action in Pierre
Anyone hoping for some measure of finality this week on the tax relief talks dominating the 2023 legislative session was almost certainly let down. Those who relish the spectacle of late-session political ping-pong, however, had plenty to watch. Coming into the session, the state’s historic surplus – made possible by a combination of economic growth […]
Senate passes property tax credits, setting up final-week scramble over tax relief
The state Senate complicated the Legislature’s tax-relief debate Thursday by approving legislation that would provide homeowners with an annual tax credit payment. The Senate passed a bill 31-2 that would send $425 to South Dakota homeowners each year as a way to relieve their property tax burden. The annual cost to the state’s general fund […]
Noem threatens to pull budget support if lawmakers don’t pass her food-tax repeal
SIOUX FALLS — A final showdown is looming between Gov. Kristi Noem and the Legislature over tax cuts. During an unrelated bill-signing ceremony Wednesday in Sioux Falls, Noem responded to questions from the media and suggested she would not approve a state budget that does not include her proposed repeal of the states sales tax […]
$104 million tax cut plan amended to end in two years
The last major tax cut bill still alive in the Legislature would now only last two years, based on an amendment that the Senate Taxation Committee passed Monday morning. House Bill 1137 plans to reduce South Dakota’s state sales and use tax rate from 4.5% to 4.2%, about a $104 million tax break. The cut […]