PIERRE, S.D. (SDBA) — Scientifically, lithium is not a precious metal.

And as of Monday, legislatively, it won’t be taxed in South Dakota.

At least not yet.

On a reconsideration vote, the Senate again failed to pass taxing lithium at the severance tax rate of 5% on a 21 to 12 vote. HB1043 needed a two-thirds vote or 24 votes to pass.

Bill supporter Republican Sen. Randy Deibert (dye-burt) from Spearfish said companies in the Black Hills are exploring lithium.

However, Republican Sen. David Johnson of Rapid City said the bill puts up a big banner that says, “tax, tax, tax.” He said it would disincentivize future mining in the Black Hills if passed.

Johnson also said lithium is not a precious metal like gold or silver.

A fellow opponent, Republican Sen. Brent Hoffman from Hartford, agreed.

The legislature defeated a similar measure last session as well.