(South Dakota Broadcasters Association ) On a 70 to 0 vote, the House this afternoon (Thursday) passes a conference committee compromise to reduce the state sales tax from 4.5% to 4.3% for four years.
House members cheered when the clerk announced the unanimous vote.
The measure returns to the Senate for its concurrence.
If adopted by the upper chamber and signed by Gov. Kristi Noem, the bill would create taxpayer savings of $104 million per year.
Unless changed by a future legislature, the tax cut would end on June 30, 2027, and revert to 4.5%.
“This is the end of a long and winding road to cut taxes in a significant way in over 30 years,” said Republican House Majority Leader Will Mortenson of Pierre. “It wasn’t an easy road.”
Republican Rep. Chris Karr from Sioux Falls, who has championed the idea for the past several sessions, said the fractional decrease in the broad sales tax is “good tax policy.”
“We have an obligation to do this,” he said.
He said he’ll work in upcoming sessions to remove the “sunset” provision and “make sure it is a long-lasting, meaningful tax cut.”
The Senate is in recess until 5 p.m. (CT).
Legislators still have the nearly $8 billion state appropriations bill to pass before they can go home for the end of the regular run of the 2023 legislative session.