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SDPB Radio Coverage of the South Dakota Legislature. See all coverage and find links to audio and video streams live from the Capitol at www.sdpb.org/statehouse

Deadwood Tax Increase Bill Passes The SD House

The State House passed a bill on Monday afternoon, allowing the town of Deadwood to increase its municipal tax. Lawmakers are split on this bill.

The community of Deadwood has been losing gambling revenue over the past few years and the state legislature is looking for solutions. One proposal is to increase the hotel tax. Senate Bill 98 allows Deadwood to increase its municipal tax from two dollars to three dollars. This is a lodging tax on those who spend the night in the city limits. Democratic  State Representative Bernie Hunhoff says this tax increase will help with maintenance in Deadwood and open doors to helping other communities with similar issues.

"Together we’re going to have to start caring about these towns. If we don’t really start being creative and helping these communities reinvent themselves, we’re going end up with six or eight communities surviving in South Dakota and just nothing but empty space between them," Hunhoff says.

But not everyone sees the bill as a creative way to help a community.  Republican State Representative Don Haggar opposes this bill.

"It’s a tax increase, the way I look at it and I understand that it’s been ruled that it’s not but because it’s local option, but it’s likely to be a tax increase for the folks that go to deadwood. So, on those grounds I’m going to be opposing it," Haggar says.

Senate Bill 98 passed the South Dakota House of Representatives 39-31 and it goes next to the Governor’s Desk.
 

Nate Wek is currently the sports content producer and sports and rec beat reporter for South Dakota Public Broadcasting. He is a graduate of South Dakota State University with a Bachelor of Science degree in Journalism Broadcasting and a minor in Leadership. From 2010-2013 Nate was the Director of Gameday Media for the Sioux Falls Storm (Indoor Football League) football team. He also spent 2012 and 2013 as the News and Sports Director of KSDJ Radio in Brookings, SD. Nate, his wife Sarah, and three sons, Braxan, Jordy, and Anders live in Canton, SD.