The bill that would have allowed South Dakota towns to raise the sales tax by another penny has been voted down in the House Local Government committee.
It was the first step in the legislature for the 3rd penny sales tax bill. Money from the increase would have paid for large projects that cannot be paid for from other areas of the city budget. The bill also required that a city tell voters how long the extra tax would be in effect and when it would end.
The city of Sioux Falls was the main backer of the bill. It planned to use the money to fund a new events center.
Legislators who voted against the bill called it a regressive tax that residents shouldn't be forced to pay during these tough times.