South Dakota Eyes More Tourism Revenue
South Dalota lawmakers are considering asking tourists to pay a little more when they visit the state in the summer.
A tax of 1% already is in place for customers of motels, campgrounds, spectator events, vehicle rentals and venues frequented by tourists between June and September and a bill before the state Legislature suggests giving that tax a boost.
House Bill 1229 proposes raising the amount to 1.5%, which could raise an estimated $2.6 million in additional revenue for the state. Supporters said much of the tax would be paid by out-of-state tourists, according to the Mitchell Daily Republic.
The House Taxation Committee unanimously approved the measure Thursday (Feb. 19) and sent it on to the House.
Sharon Constant, who works at Famil-E-Fun Campground in Mitchell, said she wouldn’t support an increase in tax for summer tourists unless she knew the additional revenue would help repair roads, particularly vital roads such as Interstate 90.
In Pierre, representatives from the tourism industry said the measure would raise extra money to help South Dakota manage its budget woes.