Governor Larry Rhoden of South Dakota has enacted three new bills designed to enhance economic development in the state. These measures aim to increase gambling tax revenues for Deadwood, allow for more cigar bars, and permit cities to temporarily raise sales taxes.
Rhoden, a Republican, emphasized that this legislation is in line with his policy of making South Dakota ‘open for opportunity.’ In a recent press release, he stated, “I am dedicated to strengthening our communities and ensuring South Dakota remains open for opportunity, which is precisely what these bills achieve.”
One significant bill modifies the distribution of gambling tax revenues generated in Deadwood, the only area in the state where full casino-style gambling is allowed outside of tribal lands. The new regulations eliminate a previous cap of $6.8 million on the city’s share of certain revenues and revise how the remaining funds are allocated.
With the updated formula, a greater portion of the remaining revenue will be allocated to historic preservation efforts in Deadwood, while a smaller share will go to the state’s general fund. Additional funds will be distributed to local entities, including municipalities in Lawrence County and the Lead-Deadwood School District.
If these changes had been implemented last year, Deadwood’s revenue share would have risen from $7.13 million to $7.29 million. Local lawmakers and state officials anticipate that this additional funding will facilitate infrastructure enhancements.
Governor Rhoden remarked that the revised revenue distribution will help ensure that Deadwood can continue to prosper and contribute to the state’s economy.
The legislative package also includes provisions for cities and counties to grant licenses for additional cigar bars, expanding beyond the limited number of establishments previously permitted under the state’s indoor smoking ban, subject to specific requirements.
Additionally, a third bill allows municipalities to implement a temporary sales tax of up to 1% to finance significant projects, contingent upon approval from at least 60% of voters. This tax will expire once the necessary funds are collected or after five years, whichever occurs first, and cannot be reintroduced for a minimum of two years.
According to the announcement from Rhoden’s office, this provision aims to “encourage local communities to plan responsibly and remain open for opportunity.”