SB 91 An Act to reduce the rate for the contractor’s excise tax over a period of time and to repeal the contractor’s excise tax in three years.
Currently South Dakota’s 2% contractors excise tax is projected to generate revenues of $90 million for the state general fund in fiscal year 2014 (FY14). The historic annual revenues are graphed on the chart below1. Senate Bill 91 would reduce the rate for the contractors excise tax each year for three years and repeal it in 2016.
Proposed tax rate decrease:FY13 (current): 2% FY14: 1.5% FY15: 1.0% FY16: 0.5% July 1 2016: repeal
1Chart by SD B&PP based on data from SD Department of Revenue Annual Reports 1999 to 2012 and FY2014 Budget Book