Sales taxes

Gov. Kristi Noem attends an event Oct. 12, 2022, at a Sioux Falls grocery store. (John Hult/SD Searchlight)

Noem signs temporary tax reduction into law, vows to fight for permanent tax cut

BY: - March 21, 2023

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 […]

Gov. Kristi Noem speaks at the Calvin Coolidge Foundation conference at the Library of Congress on Feb. 17, 2023, in Washington, D.C. (Anna Moneymaker/Getty Images)

Noem signs $7.4 billion budget despite previous threats

BY: - March 20, 2023

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 […]

COMMENTARY
Gov. Kristi Noem delivers her annual budget address Dec. 6, 2022, at the Capitol in Pierre. (Makenzie Huber/SD Searchlight)

Noem’s next move will reveal her level of tax-cut commitment

BY: - March 20, 2023

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 […]

Members of the state House of Representatives stand and applaud after a $104 million tax cut bill passed with unanimous support on March 9, 2023, at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

Lawmakers approve temporary sales tax cut worth an estimated $104 million in first year

BY: - March 9, 2023

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 […]

COMMENTARY
Reps. Mike Derby, R-Rapid City, left, and Chris Karr, R-Sioux Falls, shake hands after a $104 million tax cut passed the House unanimously on March 9, 2023, at the Capitol in Pierre. (Makenzie Huber, South Dakota Searchlight)

‘Biggest tax cut ever’? Depends on how you slice it — and on Noem’s reaction

BY: - March 9, 2023

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 […]

From left, Senate Majority Leader Casey Crabtree, R-Madison, and Senate Majority Whip Ryan Maher, R-Isabel, participate in a conference committee meeting on tax-relief legislation March 8, 2023, at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

House and Senate deadlocked on tax relief deal with time running out

BY: - March 8, 2023

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 […]

From left, Rep. Kirk Chaffee, Rep. Taylor Rehfeldt, two legislative staffers, and Rep. Will Mortenson take part in a conference committee March 7, 2023, on a property tax rebate bill alongside Sens. Casey Crabtree, Reynold Nesiba and Lee Schoenbeck (not pictured). (Makenzie Huber/South Dakota Searchlight)

Lawmakers focus on general sales tax reduction, defeating other tax cuts

BY: - March 7, 2023

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 […]

Gov. Kristi Noem speaks to reporters March 6, 2023, at the Capitol in Pierre about her revived grocery tax repeal bill. (Makenzie Huber/South Dakota Searchlight)

Senate revives Noem’s grocery tax repeal in session’s final week

BY: - March 6, 2023

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 […]

The South Dakota Capitol Rotunda. (Joshua Haiar/South Dakota Searchlight)

Legislative roundup: Tax talks go topsy-turvy, and the rest of the week’s action in Pierre

BY: , and - March 3, 2023

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 […]

Legislators in the Senate Chamber during the 2023 legislative session at the Capitol in Pierre. (Joshua Haiar/South Dakota Searchlight)

Senate passes property tax credits, setting up final-week scramble over tax relief

BY: - March 2, 2023

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 […]

Gov. Kristi Noem attends an event Oct. 12, 2022, at a Sioux Falls grocery store. (John Hult/SD Searchlight)

Noem threatens to pull budget support if lawmakers don’t pass her food-tax repeal

BY: - March 1, 2023

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 […]

State Sen. Jim Stalzer, R-Sioux Falls, speaks on the Senate floor during the 2023 legislative session at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

$104 million tax cut plan amended to end in two years

BY: - February 27, 2023

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 […]