HB 1001, the bill to make last year’s 0.3% sales tax cut permanent, was stopped cold in a Senate committee yesterday morning.

The Senate Appropriations Committee tabled HB1001 on a 7-2 vote.

The current law sunsets the decrease to a 4.2% sales tax rate from 4.5% on June 30, 2027.

The bill’s sponsor, Republican Rep. Chris Karr from Sioux Falls, says South Dakota’s economy is strong.

Opponents said the legislature can still take a year or two before acting and see how revenues come in.

Mitch Rave with the Sioux Falls Area Chamber of Commerce.

Though the committee tabled making the tax cut permanent, nothing is ever truly dead until the legislature adjourns.