PIERRE, S.D. (MITCHELL NOW) Including lithium as a mineral subject to the state’s severance tax failed to obtain a two-thirds majority vote this afternoon (Thursday) in the South Dakota Senate.
HB1043 failed on a 23 to 9 vote.
The severance tax rate on minerals is 5%.
The bill previously passed the House.
The bill’s Senate sponsor, Republican Sen. Randy Deibert (dye-burt) from Spearfish, said that South Dakota was one of the top lithium producers in the nation during World War Two. He said it is only fair that if the mineral is extracted in South Dakota and the infrastructure such production requires, the state should see some taxes from it.
Two opponents spoke against the measure.
Democratic Sen. Shawn Bordeaux (bore-dough) from Mission opposed the bill, saying, “I do oppose the idea of developing mining activities in our sacred Black Hills.”
Republican Sen. David Johnson from Rapid City asked why the state was looking to impose another tax, particularly when it has other tax structure problems. He also chided his fellow Republicans.
“Mr. President (Lt. Gov. Larry Rhoden), you’re a good Republican,” Johnson said. “Why don’t we create a tax? Let’s create a tax. What do you say? Let’s go for it. If you don’t have a method or a means by which to create a new tax, no, let’s just invent one. Let’s call it a precious metal.”
Following the vote, Deibert requested reconsideration of the bill, which could occur as early as Monday.
(SDBA)