Tax & Accounting Blog

1 Percent Sales Tax Increase Legislation Dies in South Dakota

Indirect Tax, Sales and Use Tax March 10, 2011

Senate Bill 174 was voted down by a South Dakota Senate Committee 6-3 earlier this month. The bill would have temporarily increased state sales tax by 1 percent for each of the next 3 summers and the funds generated were to go towards education and health care.

Opponents of the legislation stated that trying to tax ones way out of a recession was the wrong philosophy, calling it a temporary fix to a permanent problem, while proponents of the bill cited the relief it would provide for schools and Medicaid.

The bill can still be introduced to the South Dakota Senate, to see if it can get the necessary 2/3 majority to bring it back to life.