Lawmakers are waiting for a bill that clarifies how the state reduces its sales tax percentage after a certain amount of new, online sales tax is collected.
The bill gives a legislative committee the authority to decide if the sales tax rolls back.
The bill, which still exists in draft form, changes what’s known as the Partridge Amendment. That amendment was tacked onto 2016 legislation that raised the state sales tax by half a percent for increased education funding and property tax relief.
South Dakota sales tax is 4.5 percent.
For every $20 million dollars raised, the state sales tax percentage roll back by a tenth of a percent, stopping at four percent.
But it’s not exactly clear how that happens.
State Senator Jeff Partridge is the amendment’s namesake. He’s also bringing this new bill.
“It’s very important for us as a state, and us as a legislature right now, to come in now, after that special session, after we’re able to collect, based on the Wayfair case, and clarify the language for this amendment and exactly what’s going to happen. I’m going to be submitting a bill that does just that.”
The change to the Partridge Amendment requires the Department of Revenue, which falls under the governor’s office, to present revenue to the legislature’s appropriations committee by the 21st legislative day. The appropriations committee with then determine a revenue estimate and may then decide on the sales tax percentage for the coming year.
Partridge says the goal is to keep the decision of the state sales tax percentage in the hands of the legislature.