SIOUX FALLS, S.D. (KELO) — Will she or won’t she? That’s the question a lot people are asking about whether or not the Gov. Kristi Noem will sign the state sales tax reduction bill.
Both the Senate and House approved lowering the sales tax rate from 4.5% to 4.2%.
The final decision is in the governor’s hands.
Two teenagers feeding the parking meter in downtown Sioux Falls, Ariahna Wells and Tiegen Crow, said they hope the state will put a little money back in their pockets.
They’re all for a sales tax reduction.
“I think it would increase consumer spending because if you’re not paying much in taxes they’re going to have more of a budget to buy other things as well,” Wells said.
Both girls work in retail, so they know a tax reduction would help people save money.
“I wouldn’t be spending as much so as long as a lot of people are benefiting and not many getting hurt it’ll be beneficial,” Crow said.
The sales tax reduction is expected to save South Dakotans $104 million dollars — the governor’s office has summarized the tax cut as saving 30 cents on every $100 dollars spent.
The reduction would expire in 2027.
One shopper suggested the state consider dropping it even more.
“We were up in Minnesota for a dance competition and we did go shopping and we realized that day when we were at the store we did save a lot of money on taxes that was huge, which reminded me why a lot of people do go to the (Twin Cities) to go shopping,” Michelle Poe said.
When you don’t have to pay extra taxes on items you buy, Poe said that’s a gift in itself for you and perhaps the state.
“So could that be a huge benefit for us here to have taxes lowered even more to bring more people to Sioux Falls and the surrounding area absolutely, especially bringing in people to downtown and all the other areas,” Poe said.
The question now is whether Noem will sign it.
She’s been critical of lawmakers for not passing her grocery sales tax repeal.
In her weekly column, she wrote lawmakers decided to deliver a temporary tax holiday to the people, rather than a permanent tax cut.
So she could sign it, or let it become law without her signature, or veto it.
Her office told KELOLAND News today to ‘Stay tuned.’