SD House passes largest tax cut in state history

PIERRE, S.D. (Dakota News Now) - The South Dakota House overwhelmingly passed the largest tax cut in the state’s history Wednesday afternoon.

House Bill 1137 reduces the state sales and use tax from 4.5 percent to 4.2 percent.

It passed on a 66 to 3 vote.

Supporters say it would be a $104 million tax cut.

Supporters also say because of the strength of the state’s economy and prudent budgeting, the state will be able to pay for its ongoing obligations without issue.

One opponent said it was not a good idea to pass tax cut legislation before all the appropriation bills have been considered, and the overall budget picture needs to be clarified.

The measure could save South Dakotans an average of $116 per person in sales tax.

The bill now goes to a Senate committee.