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).