PIERRE, S.D. (AP) — South Dakota Senate Republicans have rejected a proposal from the House to cut the sales tax by half a percentage point.
The House pushed the proposal through this week on a narrow vote.
Gov. Kristi Noem urged them to take a more cautious budgeting approach and not siphon off one of the state’s largest revenue sources.
Every Republican on the Senate State Affairs committee voted against it and the lone Democrat cast a dissenting vote.
The proposal would have cut the 4.5% sales tax to 4% over the next two years, representing an estimated $150 million in annual state revenue.
