MITCHELL, S.D.(KMIT)- Governor Kristi Noem signed House Bill 1137, which is the tax cut passed by legislators this legislative session. The state’s sales and use tax will drop from 4.5% to 4.2% for the next four years, which is when a sunset clause takes effect. Several methods of tax relief were debated during the legislative session including a complete sales tax cut on groceries, which was proposed by Governor Noem, and property tax credits for landowners. The tax relief is possible due to South Dakota’s strong economy. District 20 Representative Lance Koth (long O) of Mitchell, who was a member of the Appropriations Committee, says he took a cautious approach to tax cuts this session.
District 20 Senator Josh Klumb of Mitchell echoed Koth’s sentiment on the tax cut.
District 20 Representative Ben Krohmer, who completed his first legislative term, was happy with the cut.
Lawmakers return to Pierre on Monday to consider three vetoes issued thus far by Governor Noem.