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SDPB Radio Coverage of the South Dakota Legislature. See all coverage and find links to audio and video streams live from the Capitol at www.sdpb.org/statehouse

House Passes Tax Break On Cars Built From Parts

Lawmakers in Pierre are considering cutting the tax on cars built from spare parts.  The legislation could make it easier to build a car one piece at a time.

Not all cars in South Dakota come fresh off the lot. Some are put together from spare parts. Republican State Representative Lee Qualm from Platte wants to make sure those who build their own cars aren’t being taxed twice.

“If you take a cab and a chassis and an engine and a transmission that have come from other vehicles; the taxes have already been paid. If within five years you re-title this, you don’t have to pay the taxes again," says Qualm 

But Qualm says cars that take longer than five years to build are subject to tax. The Bill passed the House of Representatives unanimously. It goes next to the state senate. If passed and signed by the Governor, cars built from spare parts might be cheaper to title