Rural Lobbyist: Counties win on alcohol, lose sales tax.

January 22, 2016 – By #South Dakota Farmer Union

 It was a tale of two bills on county funding when the Senate Local Government and House Taxation committees entertained discussion on two separate bills that addressed county revenue. 

The Senate Local Government Committee listened to testimony on Senate Bill 2. SB2 is titled an act to revise the distribution of the revenue from the alcoholic beverage fund. Currently the state receives 75% of all revenue collected on the alcoholic beverage tax. The municipalities receive the remaining 25%.

The original language in the bill redistributed the revenue as follows 33% to the state, 33% to the municipalities, and 33% to counties. However the bill was amended before any action was taken. The amendment let the state keep 50% of the revenue, gave 25% to the counties, and the municipalities kept their original 25%.

There were numerous proponents of the amended legislation including many county commissioners and members of county sheriff offices. South Dakota Farmers Union also testified in favor of the bill. Senate Bill 2 unanimously passed through the committee by a vote of 7-0 and awaits a vote on the Senate floor. 

It was a somewhat different atmosphere in the House Taxation committee. Members of this committee heard testimony on House Bill 1006. This bill attempted to authorize counties to impose a sales tax up to 1%.

Those testifying and their message were very similar. Committee members were educated on the funding shortfalls currently being experienced at the county level. South Dakota Farmers Union however did not testify and did not take a formal position on this bill.

Our policy did not allow us to support this legislation and to oppose such legislation would only draw fire towards the agricultural community. Unfortunately for the counties, the House Taxation Committee was not as receptive to testimony as was the Senate Local Government Committee. The bill was moved to the 41st day, essentially killing the legislation by a vote of 10-2.

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Last Modified: 01/22/2016 5:19:17 pm MST