Large Project Tax Refunds (audio)
By Jackelyn Severin
South Dakota lawmakers have approved a measure reducing tax refunds for large corporate projects. Right now, depending on the size of the project, corporations can receive anywhere from a twenty-five percent to a ninety percent refund on the contractor's excise tax.
Senate Bill 195 gives a 45 percent tax refund to projects costing ten million dollars or more and a 55 percent tax refund to projects between forty million dollars and five hundred million dollars. After a project hits five hundred million dollars the tax refund stops. Senate Majority Leader Dave Knudson says this measure is a fair compromise.
"I think this compromise is one that tries to carefully balance the benefits to the public and still retaining an incentive program that is useful and usable for the future. The entire thing would in fact sunset on December 31, 2012," says Knudson.
The bill passed the Senate and House, it now goes to the Governor. If signed into law the measure could bring in over 14 million in revenue for the state.
Member stations can download the audio file here.