Architect of South Dakota's sales tax cut vows to keep fighting to make it permanent

Rep. Chris Karr, House leaders say they're not done

Rep. Chris Karr and House Majority Leader Will Mortenson continue to be supportive of a permanent reduction in South Dakota’s overall sales tax rate. (Joe Sneve / The Dakota Scout)

Pressure is already mounting on South Dakota legislators to avoid a scheduled tax increase that’s still years down the road.

When South Dakota’s sales tax rate rolls back from 4.5 percent to 4.2 percent on July 1 — pending the signature of Gov. Kristi Noem — the clock will begin counting down toward what amounts to a tax increase.

That’s because the historic cut to the state sales tax rate made by the House and Senate last week included a built-in expiration date that will revert the sales tax rate back to 4.5 percent in 2027.

That fine print was the lynchpin in the legislation that came from, at-times tense, negotiations between the House and Senate around a series of tax cut proposals offered as this year’s Legislative session came to a close.

And though House Republicans agreed to the sunset in the final hours of the session, they see it as a temporary concession.

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