SD House Approves Permanent Tourism Tax Rate

The South Dakota House has approved a permanent extension of the special tax rate applied to the receipts of tourism-related businesses.

The tourism tax rate was temporarily raised from 1 percent to 1.5 percent four years ago and is due to fall to 1 percent on July 1. The House voted 64-4 Friday to make the 1.5 percent rate permanent. The bill now goes to the Senate.

The tax is applied to the receipts of motels, campgrounds, visitor attractions and other tourism-related businesses during the months of June, July and August. The tax money is used for tourism marketing, the state arts council and archaeological research.

House Republican Leader David Lust of Rapid City says the tax collects $3.3 million a year. He says it's helped boost the tourism industry.