The National Federation of Independent Business (NFIB), a prominent organization representing small businesses in South Dakota, expressed gratitude to the state legislature for concluding the 2022 session with favorable outcomes for small business owners. During this session, lawmakers successfully blocked three bills that were seen as potentially harmful to these enterprises.
One of the proposed bills, HB 1053, aimed to introduce a new county sales tax intended to fund courthouses, public safety centers, or jails. The NFIB highlighted that municipalities in South Dakota already have the authority to impose multiple layers of taxes including state sales tax, municipal sales taxes, and other specific levies such as bed and board taxes. The introduction of an additional tax layer was viewed as a burden on small businesses still recovering from pandemic-related challenges. “In some areas of South Dakota, there is already a multi-layered framework in place so this would have created additional layers to an already complex system,” stated NFIB representatives.
Another bill, SB 166, sought to reduce the sales tax on food but failed to provide alternative revenue sources for the state. This bill was defeated by a committee vote of 5-2. Additionally, SB 70 proposed extending the reporting period for worker’s compensation injuries from three days to thirty business days; it too was rejected by its initial committee review.
The NFIB’s recent survey underscores ongoing concerns among small business owners nationwide regarding inflation. According to their Small Business Optimism Index, “26 percent of small business owners nationwide said inflation is the single most important problem in operating their business,” marking it as a significant issue since 1981.
