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 […]

COMMENTARY
Governor Kristi Noem uses a custom branding iron dipped in ink to issue her first veto of the 2023 legislative session. (Courtesy of the Office of the Governor)

Veto of lodging tax bill doesn’t align with Noem’s freedom-loving rhetoric

BY: - March 19, 2023

Gov. Kristi Noem could often be heard during the pandemic saying that South Dakota’s response to COVID-19 was based on freedom. Her message was that the state wasn’t going to tell local governments to shut down — that was up to them. It wasn’t going to shut down some businesses while designating others as essential […]

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 […]

President Joe Biden speaks about his fiscal 2024 budget request on March 9, 2023, at Finishing Trades Institute in Philadelphia. (Screenshot from White House feed)

Biden budget asks for 25% tax on billionaires, boosts in domestic and defense spending

BY: - March 9, 2023

WASHINGTON — President Joe Biden said Thursday he’s ready to meet with U.S. House Speaker Kevin McCarthy to hash out federal spending as soon as House Republicans release their budget, a challenging task without a firm deadline.  “I’m ready to meet with the speaker anytime, tomorrow if he has his budget,” Biden said during a […]

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 […]

Rep. Becky Drury, R-Rapid City, speaks on the House floor during the 2023 legislative session at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

House fails to override Noem’s veto of optional hotel tax increase

BY: - March 7, 2023

The state House of Representatives failed on Tuesday to override Gov. Kristi Noem’s veto of a bill that would allow hotels and motels in “business improvement districts,” or BIDs, to raise a per-room tax. Supporters of the bill fell six votes short of the two-thirds majority needed to override the veto. The vote was 41-29, […]

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 […]