The South Dakota Senate has voted to uphold the governor's veto against an increase to Deadwood's hotel tax.
Senators on Wednesday voted 16-19 to support the bill. But the bill's sponsor needed a two thirds vote from both chambers to override Gov. Dennis Daugaard's decision.
The bill would have allowed municipalities to tax $3 per night. The current rate is $2.
In a statement Tuesday, Daugaard said it would be a mistake to make it easier for local governments to raise taxes. The bill's sponsor said the revenue would allow cities to promote tourism and benefit the whole state.
The measure cannot be revived.
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