PIERRE, S.D. (SDBA) – Consider whether South Dakotans will see a tax cut this legislative session as a pile of spaghetti.
The possible tax cuts–a reduction in the overall sales tax, a drop or end to the sales tax on groceries, and property tax relief–as the steaming bundle of intertwined strands of everyone’s favorite carbohydrate.
But Democratic and Republican legislative leaders said this morning (Thursday) that South Dakota diners, er taxpayers, won’t get the whole plate of pasta.
They may get some of it, none of it, but certainly not all of it.
“There may possibly be a tax cut yet,” said Democratic House Minority Leader Oren Lesmeister.
Democratic Senate Minority Leader Reynold Nesiba was blunter about his choice of spaghetti strands.
“The only cut I will support is taking the sales tax off food,” the Sioux Falls Democrat said. “We haven’t heard from the Governor in a long time. We’d love to work with her. Take two cents off the grocery tax this year, take off another two and a half percent next year.”
Rep. Lesmeister agrees and says taking off the entire sales tax on food this session is basically, a noodle too far.
“We heard early on in the session that 4 1/2% was too much,” Rep. Lesmeister said. “But two percent, great. In year two or three, we can see where we’re at.”
The Democrat from Parade said putting a full 4 1/2% cut back into the boiling kettle called the legislature if revenues fall short in subsequent years “will be difficult.”
It would take a two-thirds vote of both chambers and the Governor’s signature.
However, Republican leaders are more optimistic about the plate of spaghetti.
Further, they have most of the chefs, er legislators, in the House and Senate.
They see the property tax relief and a .3% decrease in the sales tax noodles as the most palatable.
“The House took three weeks to vet the tax proposals,” said House Majority Leader Will Mortenson from Pierre. “We want a broad-based cut. We’ll see where priorities line up.”
Senate Republican Majority Leader Casey Crabtree is also optimistic about the pasta taxpayers could get this session.
“We are only days away from historic wins on tax relief,” the Madison Republican said. “We’ll have some sort of relief for South Dakotans in a big, significant way. I’m 100% confident we will.”
Republicans say do not forget the property tax strand.
Sen. Crabtree says the largest property tax cut in the state’s history is on the floor of the Senate today. (Thursday)
“People say that is the biggest burden,” Sen. Crabtree said. “I’m confident we’ll come away with the tax relief we can be proud of.”
Democrats say that noodle isn’t really a noodle.
“As to the property tax cut, it’s a shift,” said Rep. Lesmeister. “We’ll take general funds to backfill that, or it comes from other properties.”
Sen. Nesiba says there may be no general sales tax cut noodle this session but holds out hope for a reduction in the groceries sales tax.
“It has the governor’s support,” Sen. Nesiba said. It’s wildly popular outside the building.”
He hopes the Republican caucus and Republican Kristi Noem can come to a pasta compromise.
With four days of the regular session yet and another day to consider gubernatorial vetoes, the tax cut spaghetti may need more time to simmer.
The Republican and Democratic leaders made their comments during their weekly news conferences this morning (Thursday).
