Newsbreak: South Dakota in Limbo Over Tax Cut Plan as Governor and Lawmakers Clash

Lawmakers and Governor Kristi Noem of South Dakota are in agreement on the need for a tax cut but have yet to agree on which one to implement as the legislative session approaches its end. The Senate passed a “property tax cut” bill that would provide $425 checks to every owner-occupied home in the state to relieve property tax burdens. Republican Senate Majority Leader Casey Crabtree has said that the bill would provide $104 million in property tax relief, benefiting 245,302 households, as reported by the South Dakota Searchlight on March 2, 2023.

Governor Noem has threatened to veto the budget bill if a permanent tax cut is not implemented, stating her preference for a full cut of the grocery tax. She criticized the Senate’s proposed sales tax cut, which would only last two years, as a temporary measure that would not incentivize families and businesses to move to the state.

Earlier this week, according to a report by Dakota News Now on March 3, 2023, the House sent a clean general sales tax cut bill to the Senate. They added a “sunset clause” to their original sales tax cut bill, which would have made the cut last only until 2025. Legislative leadership has stated that they will be in constant communication to reach an agreement on which taxes to cut and ensure that South Dakotans receive some form of tax relief. Republican House Majority Leader Will Mortenson expressed his willingness to work with the Senate to align priorities.