NFIB State Director Lindsey Riter-Rapp has called for the suspension of South Dakota’s gas tax in response to rising fuel prices impacting small businesses. The organization, which represents small businesses in the state, is urging lawmakers to act swiftly due to the economic challenges posed by increasing gas costs.
“While lawmakers had a successful session this year when it came to protecting small business owners from harmful legislation, they gaveled out before taking on an issue that many of our small business owners are struggling with – the rising cost of gas prices,” said NFIB State Director in South Dakota, Lindsey Riter-Rapp. “South Dakota’s small businesses were already negatively impacted by inflation, the struggle to hire workers and the fallout from the pandemic. The dramatic increase in gas prices could be the final nail in the coffin for some of our mom-and-pop shops.”
The latest NFIB Small Business Optimism Index indicates that 26 percent of small business owners nationwide consider inflation their most significant operational challenge, marking the highest concern level since 1981.
“Many of our small business owners rely on gas to run their business. When fuel prices go up, their costs go up and ultimately the entire economy suffers since small business owners are forced to raise the prices for their services. Reducing gas prices will ease the burden for everyone in the state,” added Riter-Rapp.
The $0.30 per gallon state tax on gasoline is a focal point for NFIB’s appeal, as its suspension could alleviate financial pressure not only on businesses but also consumers across South Dakota. This call comes at a time when main street businesses face significant challenges.
Recent data from NFIB highlights ongoing struggles as businesses recover post-pandemic:
– About 73% of small business owners have raised average selling prices due to supply chain issues and staffing shortages.
– Over half (51%) report significant impacts from supply chain disruptions.
– Staffing shortages remain critical, with 24% experiencing significant shortages and another 18% facing moderate ones.
