South Dakota Governor Larry Rhoden has enacted three new laws designed to enhance economic growth, including provisions to increase gambling tax income for Deadwood, allow more cigar bars to open, and enable cities to temporarily enhance sales taxes.
The Republican governor expressed that these measures resonate with his “open for opportunity” initiative. “My commitment is to bolster our communities and maintain South Dakota as a place of opportunities, and these bills are precisely in that direction,” Rhoden stated in a press announcement.
All three initiatives will come into effect on July 1.
One of the bills updates the way gambling tax income from Deadwood, the sole area in the state where full casino-style gambling is allowed outside tribal lands, is distributed. The new regulations eliminate a $6.8 million cap on the city’s share of particular revenues and modify how leftover funds are assigned.
With the updated allocation strategy, a higher percentage of remaining funds will be directed towards Deadwood’s historical preservation projects, while the state’s general fund will receive a diminished share, and the remaining funds are designated for various local authorities, including municipalities in Lawrence County and the Lead-Deadwood School District.
If these modifications had been operational last year, Deadwood’s share would have risen from $7.13 million to $7.29 million. Local lawmakers and state officials anticipate that this additional revenue will facilitate crucial infrastructure upgrades.
Rhoden remarked that the updated distribution mechanism would contribute to ensuring that Deadwood “can continue to flourish, progress, and bolster” the state’s economy.
The legislative package also features a measure that permits cities and counties to grant licenses for extra cigar bars, expanding beyond the restricted establishments previously allowed to operate under the state’s indoor smoking ban, contingent on specific stipulations.
A third provision grants municipalities the authority to impose a temporary sales tax of up to 1% for financing major projects, requiring approval from at least 60% of voters. This tax will be abolished once the necessary funds are collected or after five years, whichever happens first, and cannot be reinstated for a minimum of two years.
According to Rhoden’s office release, this provision aims to “promote responsible planning by local communities while remaining open for opportunities.”