The House of Representatives passed a bill that would make last year’s state sales tax-cut permanent.
Last year, the legislature changed the state sales tax from 4.5 percent to 4.3 percent. However, they included the provision stating the tax would revert to its previous rate in June of 2027. This is called a “sunset provision.”
Some, representatives including, Rep. Oren Lesmeister from Parade, feel that legislators should wait to make this decision and collect more data. Lesimeister mentioned concern about strain on the state budget, especially if voters eliminate the grocery tax.
“Can our budget handle both of these reductions?” asked Lesimeister.
Republican Rep. Chris Karr from Sioux Falls sponsored the bill to remove the sunset provision.
“Right now, and foreseeably, things look good.” said Karr “It’s about a comfort level. Last year, more legislators said they were comfortable.”
The bill now goes to a Senate Committee for consideration.
