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Bill

SB 195

repeal the expiration of a reduction in certain gross receipts and use tax rates.

2026 Regular Session Introduced by Jon Hansen and 7 co-sponsors

SB 195 makes permanent South Dakota tax rate reductions on gross receipts and use taxes that were scheduled to expire, reducing future state revenue indefinitely.

Senate Reconsidered , Passed, YEAS 16, NAYS 17 S.J. 295
#retailsalesandservicetax #sessionlaws #taxation
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Bill Summary · SB 195

Legislative bill overview

SB 195 proposes to repeal the scheduled expiration of tax rate reductions on gross receipts and use taxes in South Dakota. This means tax cuts that were previously set to expire would instead become permanent. The bill essentially extends indefinite tax relief that was originally temporary.

Why is this important

Tax rate reductions directly affect state revenue collection, which funds education, infrastructure, and public services. Making temporary tax cuts permanent has significant long-term budget implications, potentially requiring either reduced spending, deficit spending, or alternative revenue sources to maintain state operations.

Potential points of contention

  • Revenue impact: Repealing the expiration means permanent foregone state revenue, requiring analysis of fiscal consequences and how the state will fund existing programs
  • Fiscal timing: Making this decision during budget planning cycles could constrain future legislative flexibility and create structural budget deficits
  • Tax fairness debates: Questions about whether gross receipts and use tax reductions primarily benefit certain business sectors or income levels versus broad-based relief

Compiled from official sources — confirm details with the bill’s official record.

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