South Dakota sales tax cut goes into effect Saturday



(The Center Square) – A law that cuts South Dakota’s sales tax rate from 4.5% to 4.2% for the next four years goes into effect on Saturday.

The tax rollback will return $69 million to the taxpayers, Sen. Ryan Maher, R-Isabel, who championed the bill in the Senate, said after Gov. Kristi Noem signed the legislation.

The governor pushed for a rollback of the state’s grocery tax, but lawmakers scoffed at the idea. A petition drive to get the grocery tax repealed on the November 2024 ballot is ongoing.

“This tax reduction will give them some relief from the overbearing inflation caused by Washington’s bad policies,” Noem said. “While some help, albeit temporary, is better for our people than none at all, I will continue working to deliver permanent tax relief for South Dakotans.”

House Bill 1230 is one of several bills taking effect on Saturday. The state will begin accepting most out-of-state occupational licenses. South Dakota has an estimated 25,000 open jobs.

“Our economy is booming, but our workforce is experiencing some growing pains,” Noem said. “We’re tackling this workforce shortage head-on.”

A $5 million advertising campaign has drawn more than 1,500 responses from around the country, the governor’s office said this week.

Noem also signed a bill effective Saturday that gives free college tuition to National Guard members who attend in-state universities.

“The members of the South Dakota National Guard are some of the strongest and bravest men and women in the country,” Noem said. “They’re the kind of folks we want to stay in South Dakota to earn an education, participate in our booming economy, and raise a family. This new law will help them do just that.”

Noem is South Dakota’s first female governor. Also Saturday, state statutes will no longer refer to the governor, lieutenant governor and other public officials as “him” or “he.”

“Every little girl in South Dakota should realize that she can grow up to do whatever she wants to do – to be whoever she wants to be,” Noem said. “We are fixing our laws so that they reflect the fact that women and men can both attain offices like governor.”

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