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Bill

Bill

SB 16

set aside certain contractor's excise tax collections relating to the Ellsworth Air Force Base, to create a fund for the collections, and to provide an appropriation therefor.

2025 Regular Session Introduced by Bobbi Andera and 22 co-sponsors

South Dakota dedicates contractor excise tax revenue from Ellsworth Air Force Base to a restricted fund for base-related expenses, narrowly passing amid amendment debates.

Senate Do Pass Amended , Passed, YEAS 14, NAYS 21 S.J. 420
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Bill Summary · SB 16

Legislative bill overview

SB 16 creates a dedicated fund for contractor's excise tax collections specifically tied to Ellsworth Air Force Base operations in South Dakota. The bill directs these tax revenues into a separate account and provides an appropriation for how those funds will be used, likely for base-related infrastructure or community support projects.

Why is this important

Ellsworth Air Force Base is a major economic and strategic asset for South Dakota, and dedicating specific tax revenue to it ensures consistent funding for base-related needs without competing annually for general appropriations. This approach can improve planning certainty for projects that support military operations or surrounding communities that depend on the base economically.

Potential points of contention

  • Revenue dedication: Setting aside excise tax revenue for one specific purpose reduces fiscal flexibility and may limit funding available for other state priorities during budget constraints
  • Military-civilian equity: Dedicating tax revenue to a federal military installation may raise questions about whether state resources should prioritize private contractors' taxes over other state needs
  • Amendment process: The bill required multiple amendments (16D and 16G) and passed the Senate with a narrow 14-21 vote, suggesting significant disagreement about its final form or underlying policy

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

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