PIERRE, S.D. (SDBA) – Three sales tax reduction bills are before the Legislature today with only one likely having a chance of passage.
Boil it all down, and the chambers are quibbling over a tenth of a percent.
The likely survivor, HB 1137A, is scheduled for a conference committee at 9:30 a.m. (CT).
A conference committee comprises three members from the House and three from the Senate who try to come to a compromise or an agreement when the two houses pass different versions of a bill.
HB 1137A cuts the state’s general sales tax on most goods and services from 4.5% to 4.3%.
That would save South Dakotans about $69 million.
SB 104 and SB 112, which cut the rate to 4.2%, are back in the House for consideration.
Those proposals would save taxpayers about $104 million.
Still lurking on the second floor of the Capitol is Republican Gov. Kristi Noem’s plan to remove the sales tax on groceries.
That proposal would also save taxpayers about $120 million.
She has hinted at vetoing the general appropriations bill, which both houses will consider Thursday.
The Joint Appropriations Committee puts the finishing touches on the bill, HB 1049, and hearing a few other bills, starting at 8:45 a.m. today and working throughout the day.
So, even if the House and Senate agree on the new and lower sales tax rate, Gov. Noem could veto it.
Today is the 36th day of the session, with the final day of the main run of the session Thursday.
However, as the old saying goes, “it ain’t over ’til it’s over.”
It may not be truly over as far as a tax reduction goes until the 38th Legislative Day–Veto Day–on March 27.