A bill to help recharge South Dakota’s horse racing industry in Fort Pierre and Aberdeen is moving on to the floor of the South Dakota House after gaining approval of the House State Affairs Committee Wednesday. House Bill 1251 Y-T-B is an amended version of two similar bills which have been withdrawn. Shane Kramme of Fort Pierre testified on behalf of the South Dakota Horseman’s Association. He says would be somewhat a kin the Wayfair Supreme Court case on Internet sales taxes….
“The inaction of the is bill would allow us to impose a source market fee on out-of-state providers who receive wagers from South Dakota citizens on live horse racing events that occur outside of state boundaries. I believe this process would be facilitated to the South Dakota Commission on Gaming just as simulcast is now. These generated revenues would then be reinvested into South Dakota horse racing just as simulcast funds are through the live racing accounts and overseen by the South Dakota Commission on Gaming.”
Five others testified in favor of the bill. The lone opponent was David Wiese the Deputy Secretary of the South Dakota Department of Revenue. He called the fees associated with the bill a tax…
“My testimony is pretty simple and straight forward. House Bill 1251 as amended in amendment 1251 Y-C, and I want to say that because I think I saw a different version of the amendment earlier. It licenses a new group of people, it imposes a brand new tax that is not on the books today, so this is a new tax bill, again we’re opposed to any new tax.”
Representative Steven McCleerey of Sisseton says he sees opportunity with the bill….
“And I too, coming in the door this evening, wasn’t going to be in favor of this, but I’ve turned around, I’ve turned my attitude and opinion and I think, done right and done properly, I think it could end up being a tourist attraction, if you work that properly, so I will be voting for it.”
The bill passed out of the House State Affairs Committee on a nine to two vote.