South Dakota House Bill HB1138

South Dakota 2024 Regular Session

• Introduced: 1/24/24
• Refer: 1/24/24

Caption

Establish a sales tax exemption for certain disabled veterans.

Impact

The bill would amend existing state tax laws to create a dedicated exemption for disabled veterans, reflecting a state commitment to support those who have served in the military and are now facing significant challenges due to their disabilities. The implementation of this exemption is expected to encourage local retailers to adapt their sales processes to honor the tax-free status for eligible veterans. The legislation also mandates the issuance of a sales tax exemption card by the state’s secretary of revenue, which will provide a practical mechanism for veterans to claim their entitled benefits at the point of sale.

Summary

House Bill 1138 seeks to establish a sales tax exemption specifically for veterans rated as permanently and totally disabled due to a service-connected disability. The legislation aims to alleviate some financial burdens for these veterans by exempting them from sales tax on tangible personal property and certain electronic services, with an annual exemption limit of $25,000. The bill emphasizes that the exemption is intended strictly for veterans meeting the defined disability criteria, thereby targeting a specific group for assistance within the veteran community.

Contention

While the bill has received support from various stakeholders who advocate for expanding benefits for veterans, there may still be points of contention regarding its potential impact on state revenue. Critics could argue that the tax exemption, while beneficial for the targeted group, may lead to a decrease in tax income for the state, affecting overall budget allocations for public services. Additionally, the process of determining eligibility and the administration of the exemption card could lead to discussions about practicality and bureaucratic hurdles.