Add an exemption from the calculation of adjusted gross proceeds from gaming.
Impact
The adoption of SB98 is expected to have significant implications for state tax revenues and the gaming industry. By allowing exclusions for free play, the bill could increase the financial viability of gaming operators by decreasing their tax burdens. Supporters argue that this measure could stimulate growth in the gaming sector, leading to more jobs and economic activity within South Dakota. However, there are concerns that this could result in a reduction of overall tax revenue from gaming, affecting state funds that are reliant on this income.
Summary
Senate Bill 98 proposes an amendment to the existing South Dakota gaming laws by introducing an exemption from the calculation of adjusted gross proceeds from gaming activities. Specifically, the bill seeks to exclude the value of free play provided by operators when determining what constitutes gross proceeds, thereby allowing for potential reductions in taxable amounts for gaming entities. This shift is intended to enhance the operational framework for gaming operators within the state, likely making it more favorable for businesses involved in the industry.
Sentiment
The sentiment surrounding SB98 appears to be largely favorable among gaming industry stakeholders who view the legislation as a necessary step to make South Dakota more competitive in attracting gaming businesses. Proponents believe that by lowering the tax burden on operators, the state can promote increased investment and enhance the appeal of gaming as a form of entertainment. Conversely, there are opponents who worry that such tax exemptions could lead to a potential decrease in public revenue that is allocated for state services and programs.
Contention
Key points of contention include the balance between fostering a business-friendly environment and ensuring adequate funding for state services. Critics of SB98 may argue that while the intention is to support economic growth, it could ultimately jeopardize vital public service funding. Additionally, discussions may arise regarding the fairness of such tax exemptions, particularly in how they could affect small businesses compared to larger gaming entities that may benefit disproportionately from these changes.