SD lawmakers pass sales tax cut on final day of Legislative Session

Published: Mar. 9, 2023 at 4:38 PM CST
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SIOUX FALLS, S.D. (Dakota News Now) - South Dakota lawmakers are one step closer to delivering the largest tax cut in state history, but getting the bill across the finish line hasn’t been easy.

House Bill 1137 has been making its way through the legislature for more than six weeks now. On Thursday, both the house and senate passed the bill, sending it to Governor Noem’s desk.

The bill would reduce the state sales tax from 4.5 percent to 4.2 percent.

The bill passed out of a conference committee Thursday morning before clearing the house and senate in the afternoon.

Lawmakers landed on this bill over a proposal to cut property taxes and Governor Noem’s grocery tax cut. Last week, the governor hinted at a veto of any tax cut other than hers.

Republican leaders were asked about that possibility, and House Majority Leader Will Mortenson said, “You know, we’ve been thinking and working on these tax cuts for a long time, and one thing that you realize when its on big broad topics like this is that you either want to make a priority to cut taxes or a priority to cut taxes exactly the way you want to. I don’t think the senate would say they are cutting taxes exactly the way they want to. I don’t think the house would say they are cutting taxes exactly the way we want to, but that’s the process and these bills have to come through the legislature. I’m really proud we landed at the largest tax cut of these proposals.”

Republican leaders were asked if they have enough votes to override a potential veto from the governor. They said there is an appetite to cut taxes and that they’re satisfied with where they’re at.