State Senate Committee Kills Sales Tax Bill
A bill to temporarily increase sales and use taxes in South Dakota to offset education funding was killed in committee today in Pierre. Senate Bill 120 adds on an extra one percent in sales and use taxes on electronic transfers and other services during the summer months. Opponents argue that the middle of a recession isn't a good time to raise taxes on South Dakotans. SDPB's Charles Michael Ray followed the committee debate and has this story.
Proponents of the extra summertime sales tax like Republican Senator Stanford Adelstein argue the temporary tax is needed to make up for serious shortfalls in education. Adelstein says this school year is a funding disaster in Rapid City Schools.
"In Rapid City we are in a very serious situation we are the second largest city in the state our school population represents about ten-percent and I know that we desperately need this 30-million dollars," says Adelstein.
But opponents argue sales taxes hurt lower income residents more. They also argue that voters have a chance to decide this matter in a ballot issue set for the 2012 election. The committee killed the bill by a vote of four to one.
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