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Gov. Daugaard Vetoes SB 159





            Office of Gov. Dennis Daugaard

500 E. Capitol Ave.

Pierre, S.D. 57501

605-773-3212

www.sd.gov

 

 

 

 

FOR IMMEDIATE RELEASE:  Friday, March 20, 2015

CONTACT:  Tony Venhuizen or Kelsey Pritchard at 605-773-3212

                                   

 

Gov. Daugaard Vetoes SB 159

 

PIERRE, S.D. – Gov. Dennis Daugaard has vetoed the following bill:

                    

SB 159 – An Act to exempt certain amateur sports coaches from sales and use tax.

 

For more information about this bill and other bills, visit legis.state.sd.us.  

 

 

                                                            -30-

 

 

Note: A copy of the Governor’s veto message follows:

 

March 20, 2015

 

The Honorable Matt Michels
President of the Senate
500 East Capitol Avenue
Pierre, SD 57501-5070

 

Dear Mr. President and Members of the Senate:


I respectfully return to you Senate Bill 159 with my VETO.

 

Senate Bill 159 is entitled, "An Act to exempt certain amateur sports coaches from sales and use tax."

 

South Dakota has a very broad based sales tax which is imposed on the sale of tangible personal property, services, and products transferred electronically.  Our broad base has made the sales tax a steady, reliable source of revenue even in times of economic distress.  As other states see wide swings in revenue during changing economic times, South Dakota has one of the most stable revenue streams in the nation. 

 

South Dakota’s sales tax rate has been four percent since 1969, with the exception of temporary one percent increases to fund the purchase of railroad property and to initially create the REDI Fund.  A stable sales tax rate is an integral part of South Dakota’s tax friendly climate.  The rate remains low because everyone pays their fair share. 

 

Exemptions to the sales tax base, such as Senate Bill 159, erode the sales tax base and diminish a steady, reliable source of revenue for our State.  Senate Bill 159’s exemption benefits a select group and could lead to additional exemption requests in the future.  We must resist any attempt to erode the sales tax base and must work to keep the sales tax base as broad, and therefore as stable, as possible. 

 

In addition, Senate Bill 159’s exemption creates a privilege to the amateur baseball teams sponsored by select organizations, specifically American Legion and VFW organizations. While I admire these organizations and appreciate the work they do, it is bad tax policy to exempt coaches in these organizations, while continuing to tax other amateur baseball coaches.

 

South Dakota should protect our sales tax as a broad, steady, reliable revenue source. I ask that you sustain my veto. 

 

Respectfully submitted,

 

 

 

Dennis Daugaard

Governor

 

cc:     The Honorable Dean Wink
          The Honorable Shantel Krebs