Tax & Accounting Blog

Potential Sales & Use Tax Increase in South Dakota

Indirect Tax, Sales and Use Tax February 4, 2011

South Dakota Senator Stan Adelstein is planning to introduce legislation that, if passed by voters, would temporarily increase the state sales and use tax from 4.0% to 5.0% during the tourist season. His premise for this increase is avoiding the proposed budget cuts Governor Dennis Daugaard has laid forth that would cut funding for South Dakota schools, medical providers and government agencies.  Adelstein’s proposal seems to be garnering plenty of support, as a sample of voters showed close to a 2-to-1 favor of his tax increase over the budget cuts. It will be worth watching these proposals work their way through the state legislature to see which proposal garners more momentum.