South Dakota Tax Repeal Fails

February 08, 1999

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The South Dakota House last week killed a bill that would have repealed a tax on intrastate truck shipments.

Rep. Jerry Apa, who spearheaded the move to repeal the trucking tax, said it is not fair that shipments hauled into the state and those hauled out of the state are not taxed while intrastate truckers must collect the tax, he said.
“It is time to tell the people of South Dakota we will address tax inequities, and we will treat all taxpayers as fairly as possible,” Apa said.
The tax is a burden on small businesses, farmers and others, he said, arguing that elimination of the tax would create an economic boom that would result in nearly a wash on state tax revenues.
However, those opposed to the legislation said it would put a $3 million hole in the state budget.
Rep. Ron Volesky, D-Huron, said the trucking tax is so unpopular that more than 20,000 signatures against it were gathered in an effort to put the issue on the ballot. But he said that never happened because the Supreme Court ruled that a tax cannot be repealed in such a manner.

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