The State House of Representatives passed a bill that increases taxes and fees to fund improvements to South Dakota’s roads and bridges. It also raises the speed limit on the interstate.
Senate Bill One raises the gas tax six cents over the next three years. It also increases license fees and license plate fees. Representative Mary Duvall is a prime sponsor of the measure. She says it raises about $41 million for repairs to the state road system, and $17 million for local roads, with the flexibility for counties and townships to raise wheel taxes and property taxes. She says the need is well documented, and the longer the state waits, the more expensive repairs become.
“As much as we dislike talking about raising taxes and fees, I honestly think that this is the responsible thing to do,” Duvall says. “We heard overwhelming testimony throughout the interim that those who use the roads and bridges need to pay for them. There seems to be support in a broad package of asking those users to actually step up and pay for their roads and bridges.”
But opponents, like Representative Thomas Brunner say the increases in taxes and fees are a hardship for farmers, ranchers, and the poor.
“And I think most counties do have the tools in their toolbox, if they have a good plan, to either opt out or do some other things,” Brunner says. “I know we’ve got a lot of counties that don’t even have a wheel tax enacted. We’re painting a broad brush trying to raise license fees. I just think the license fee to me is especially hard to swallow.”
Senate Bill One also raises the speed limit on the interstate to 80 miles per hour. It passed through the House with a vote of 54 to 14. It’s been heavily amended so it now heads to conference committee where Senators and Representatives will work to find a compromise.