Several bills passed by this year’s legislature are set to go into effect tomorrow. The most notable is the decrease in South Dakota’s tax rate from 4.5 percent to 4.2 percent. The state tax rates affected by the change are sales and use tax, excise tax on farm machinery and farm attachment units, amusement device tax, and motor vehicle gross receipts tax. The tax holiday includes a sunset clause of June 30th, 2027. The legislature is expected to review the tax decrease during that year’s legislative session.
Governor Noem’s “Evil Foreign Governments” bill will also take effect on July 1st. The bill restricts state and local governments from contracting with six countries deemed by the governor as “evil”. Those six countries are China, Cuba, Iran, North Korea, Russia, and Venezuela.
Other bills taking effect tomorrow include a bill to provide 100% tuition reimbursement for members of the South Dakota National Guard attending college in-state, a bill that provides for all pregnancy expenses to be covered by both parents, a bill that recognizes out-of-state occupational licenses for nearly every profession.