Gov. Daugaard Vetoes Tax Bill

South Dakota Governor Dennis Daugaard

PIERRE, S.D. – Gov. Dennis Daugaard has vetoed the following bill:

SB 98 – An Act to allow certain municipalities to charge a higher occupational tax.

For more information about this bill and other bills, visit legis.state.sd.us.

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Note: A copy of the Governor’s veto message follows:

March 11, 2014

Dear Mr. President and Members of the Senate:

I am returning to you Senate Bill 98 with my VETO.  Senate Bill 98 is entitled, “An Act to allow certain municipalities to charge a higher occupational tax.”

Senate Bill 98 is a fifty percent tax increase.  It allows business improvement districts in Deadwood to increase the hotel occupancy tax on rented lodging from $2 to $3 per night.  Local officials clearly intend to increase this tax if they are allowed to do so.

The property tax opt-out already allows local officials to raise additional tax revenues.  I do not support expanding the ability of local governments to raise taxes, especially when such a raise cannot be referred to a public vote.

In my first State of the State Address, I said, “A recession is the worst time to raise taxes, and if you send me a bill to raise taxes, I will veto it.”  South Dakota has recovered from the recession, but I continue to believe that it is a mistake to raise state taxes, or to make it easier to raise local taxes.  For that reason, I oppose this bill and I ask that you sustain my veto.

Respectfully Submitted,

Dennis Daugaard

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