Rural Lobbyist: Updated: House Votes Down HB 1182 By One Vote.

 HB 1182 was finally heard on the House floor Thursday. After two successful attempts to delay the legislation, using rule JR 5-17, House members have made their vote. With a crowded gallery, House members voted down HB 1182 by one vote.

Needing a 2/3 majority to pass, the bill failed by a vote of 46 Yays, 23 Nays, 1 Excused. Immediately following the announcement, Representative Schoenbeck motioned with the intent to reconsider. If successful, House members will be given a second opportunity to pass or fail the legislation. 

The bill currently imposes a percent increase in the state’s sales and use taxes for the purpose of funding teacher salaries. The bill also includes a roughly 40 million dollar property tax reduction. While that number may seem large, it only amounts to a roughly $50 per year reduction on properties valued at $100,000. 

Currently, South Dakota Farmers Union does not support or oppose HB 1182. Instead, SDFU is looking for alternative solutions. One of those solutions includes imposing a 1 percent sales and use tax increase with an exemption for food products.

The difference between the two proposals is how it affects the 20% of the richest and poorest citizens of South Dakota. A percent increase imposes less of a burden on the upper 20% with a greater burden on the lower 20%. The 1 percent increase with an exemption for food places less of a burden on the lower 20% and a greater burden on the upper 20%. In both proposals, the burden on the 60% of South Dakotans in the middle is nearly identical.  

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Last Modified: 02/18/2016 5:00:10 pm MST