PIERRE, S.D. – South Dakota Governor Kristi Noem says South Dakotans will be getting a ‘tax holiday.’
Noem announced Tuesday she had signed House Bill 1137, which cuts the overall sales tax rate from 4.5% to 4.2% for the next four years.
Last week, Noem had said anyone who called the bill a tax cut was “lying.” But in her new release Tuesday, Noem said South Dakotans will instead get a “tax holiday.”
Noem again called for “permanent tax relief,” and said the bill is not “ideal or the best way to help the people of South Dakota.”
HB-1137 calls for shaving the sales-tax rate to 4.2% through June 30 of 2027. That would save taxpayers approximately $104 million in the next year. It also permanently repeals a 2016 clause that called for the 4.5% rate to gradually go down as more tax revenue came in from remote sellers but was never used.
