A Senate committee has rejected an idea to make a temporary sales tax permanent.
Last year, state lawmakers passed a 0.3 percent sales tax cut. The idea was pushed by the House, but senators wanted to make the cut temporary.
This year, senators feel the same way. The proposal sailed through the House, but state Sen. Bryan Breitling, R-Miller, said he and others want to see how the recently implemented tax cut plays out over time.
“It makes sense right now to keep the sunset for another three years. We’re going to have to look at it anyway, and then at that time we can make it permanent. But why make it permanent before we need to?" Breitling said. "It’s just fiscally irresponsible.”
Some senators want to see what happens with a proposed ballot question to remove the state sales tax on food and when federal pandemic aid runs out.
The Senate Committee on Appropriations tabled the bill Thursday in a seven to two vote.
Gov. Kristi Noem has indicated she wants the sales tax cut permanent. House leaders say despite the Senate rejection, there’s still appetite to make the .3 percent state sales tax cut permanent.
