State residents are about to see a sales tax increase.
South Dakota’s sales and use tax is going up from four percent to four and a half percent starting June 1st. The legislature approved the measure this year. The increased revenue goes toward teacher salaries and property tax reduction. Jonathan Harms is the Communications Director for the South Dakota Department of Revenue. He says even a half penny increase can make a big difference.
“Back during the legislative session the state did some economic forecasting based on House Bill 11-82, which was of course the half a percent sales tax increase. And the increased revenue based on that forecast $107.4 million,” says Harms.
Harms says the Department of Revenue is trying to make the transition to the new tax as easy as possible for residents. He says business owners can find information on implementing the sales tax increase through the Department of Revenue. You can find links for more information with this story on our website SDPB-dot-ORG.