South Dakota Gov. Dennis Daugaard has vetoed a bill that would increase the hotel tax in Deadwood.
The bill would have allowed municipalities to tax $3 per night. The current rate is $2.
In a statement, the governor on Tuesday said it would be a mistake to make it easier for local governments to raise taxes. He says the local officials can already increase tax revenue with the property tax opt-out.
The bill passed the House and Senate with narrow margins. Supporters said the change was necessary to support struggling communities. Opponents argued against a tax increase.
The Legislature could override the veto with a two-thirds vote in both chambers.
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