The bill to give South Dakotans a “tax holiday,” HB 1137, will go into effect on July 1. The bill temporarily lowers the state sales tax rate from 4.5% to 4.2%.
Noem signed House Bill 1137 Tuesday, referring to it as a “tax holiday” rather than a tax cut.
The bill reduces the state’s overall sales tax rate from 4.5% to 4.2%. It includes a sunset clause ending the cut after four years.
Governor Kristi Noem released a statement Tuesday about the bill, “South Dakotans built the strongest economy in the nation with their work ethic and trust in our Freedom. This tax reduction will give them some relief from the overbearing inflation caused by Washington’s bad policies. While some help, albeit temporary, is better for our people than none at all, I will continue working to deliver permanent tax relief for South Dakotans.”
