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Business & Economics

Business group calls for suspension of state gas tax

Office of Consumer Affairs and Business Regulation.png
Office of Consumer Affairs and Business Regulation

The National Federation of Independent Business is urging South Dakota lawmakers to suspend the state gasoline tax.

Lindsey Riter-Rapp is the NFIB state director. She said when fuel prices go up, business costs also go up and the economy suffers. Small business owners are forced to raise prices for their goods and services.

“You know, there are so many different variables out there right now with inflation, with the struggle to hire new workers, with the fallout from the pandemic,” Riter-Rapp said. “Somehow you add on top of that rising gas prices, and it just puts these businesses in a very difficult predicament.”

The gas tax in South Dakota is 30 cents per gallon. There's an additional federal tax of 18.4 cents per gallon. The revenue helps to fund the construction and repair of the nation's transportation infrastructure.

The current average price of a gallon of gas in South Dakota, including the taxes, is about $4.