What’s alive and what’s “dead” for tax cuts

PIERRE, S.D. (SDBA) – The Tax Cut Two-Step continues under the Capitol dome today (Tuesday).

Here are the dance steps so far:

• The House killed HB 1094, which would have removed the 4.5% sales tax on food. Republican Gov. Kristi Noem favors the end of the state sales tax on groceries.
• The House did not concur with the Senate’s changes to HB 1133 but appointed a conference committee to work out a deal. The bill would lower the overall state sales tax from 4.5% to 4.3%.
• The House killed a property tax rebate bill, HB 1141. It would have provided up to a rebate of $425 to owner-occupants of single-family homes. Republican Rep. Will Mortenson from Pierre said property taxes remain a concern, but the bill “was not ready for prime time.”

So, the remaining “dance steps” are a possible sales tax cut of either .3% (House version) or .2% (Senate version), a difference between $104 million and $69 million in taxpayer savings.

However, it is still possible at this late stage of the Legislature--Day 35 of 38--that something else or even one of the “dead” measures could emerge.

It depends upon the “dancers”--Gov. Noem and Republican House and Senate leadership.

Gov. Noem told the statehouse media yesterday (Monday) she didn’t think a savings of 30 cents per $100 was much of a benefit to taxpayers and again pushed for her proposal to end the 4.5% sales tax on groceries.

A conference committee of Senators and Representatives is attempting to devise a compromise before the two houses go back into session at 2 p.m. today (Tuesday).

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