Home > 2014 SD Legislative Session, South Dakota > SD SB98: Governor Daugaard’s first veto prevents a tax hike in Deadwood

SD SB98: Governor Daugaard’s first veto prevents a tax hike in Deadwood

March 12, 2014

blackjackYesterday Governor Daugaard announced his first veto of the 2014 legislative session. The bill in question is SB 98 and has a stated purpose to “allow certain municipalities to charge a higher occupational tax.” A better way to explain the bill would be: allow the city of Deadwood to increase its occupation tax from $2 per room to $3 per room. Some of the legislative Republicans pushing for this tax increase used ‘local control’ as a reason the tax hike was OK. Well, in his announcement Governor Daugaard actually did a good job of explaining why this selective use of local control doesn’t work:

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.

Exactly! If the city of Deadwood truly feels they need more tax revenue then let them vote for an opt-out. But I don’t think that will happen because it is not the local populace of Deadwood pushing for this, rather it is local politicians looking for more revenue.

The Senate tried unsuccessfully to overturn Daugaard’s veto. Bob Mercer was live-tweeting todays session and had this to say:

This was a shrewd move on Daugaard’s part. The bill barely made it through both the Senate and House and is a tax raise. By vetoing this bill he is able to show his conservative ‘no new taxes’ side in an election year; on a tax that most people in the state wouldn’t have even known (or cared) about. And because it barely had support in the legislature he knew there wasn’t a chance of his veto being overridden. Maybe we will see more good moves from the Governor this election year.

  1. Merlyn Schutterle
    March 12, 2014 at 8:08 pm

    But it is a tax that you would not have to pay if you didn’t want to. Most of the money would come from tourists, not the local people.

    However, if they want to raise a tax, they should show why it is necessary, not just because they can.

  1. March 31, 2014 at 7:14 pm
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