Legislative leaders differ on tax cut legislation

By Dana Hess

For the S.D. Newspaper Association

PIERRE — Republican legislative leaders are promising a conservative approach to the various tax cut bills that have been submitted during this session of the Legislature. Democratic leaders, who for years have backed a sales tax cut on food, aren’t entirely optimistic about the fate of this year’s tax cut legislation.

Their comments were made on Thursday, Jan. 26, to a group of editors and publishers in Pierre for Newspaper Day at the Legislature.

 Currently in the Legislature there are four bills with versions of sales tax cuts as well as a bill to cut property taxes.

 “Most of us would love to do a tax cut,” said Senate Majority Leader Casey Crabtree, R-Madison. “We’re going to be conservative and prudent with our decision-making. We don’t want to make a mistake now.”

 House Majority Leader Will Mortenson, R-Pierre, said Republican lawmakers are faced with a tough choice as they want to cut taxes, but they also want to be fiscally conservative.

 “We don’t make that decision hastily,” Mortenson said. “Fools rush in.”

 A cut of the sales tax on food was a cornerstone of Gov. Kristi Noem’s re-election campaign. The Republican leaders said they would work with the governor, but they needed to consider all the tax cut bills.

 “The governor has the loudest microphone of everyone in the Capitol,” Mortenson said.

 The governor may have the biggest microphone, but, according to Democrats, she’s not putting in the work that’s needed to pass her bill to cut the sales tax on food.

 “She’s using this as a campaign stunt,” said Senate Minority Leader Reynold Nesiba, D-Sioux Falls, referring to Noem announcing her support for the sales tax cut on food during her re-election campaign. “My sense of the Senate is that she doesn’t have the votes.”

 There’s a certain amount of education, cajoling and arm twisting that goes into the passage of legislation. According to Nesiba, Noem has been missing in action.

“She hasn’t been making the phone calls, doing the work necessary,” Nesiba said. “She’s often out of state, traveling, focusing on something else.”

 Rather than go without any cut in the sales tax on food, Nesiba said Democrats have offered alternative bills that cut one penny and two pennies off the tax.

 “Democrats are leading the way to a compromise to get this done,” Nesiba said. “We’ll probably help the governor save face.”