Repeal the alternate realty improvement contractor's excise tax.
Impact
The proposed repeal of the excise tax could have significant implications on state revenue, as the tax had been a source of funding for various public services. However, proponents of the bill argue that this move will foster economic growth by lowering costs for contractors, which could ultimately benefit consumers through lower prices. This duality presents a broader discussion regarding balancing tax revenues with encouraging investment in infrastructure and housing, which are critical to the state's economy.
Summary
House Bill 1136 proposes the repeal of the alternate realty improvement contractor's excise tax as specified in South Dakota law. The repeal impacts contractors engaged in realty improvement projects which have been subject to this tax. This change is part of broader efforts to streamline tax regulations affecting contractors and potentially make construction projects more economically viable by reducing the tax burden associated with realty improvements. By eliminating this specific tax, the bill aims to simplify the financial landscape for contractors operating in the state, thereby encouraging more construction activity.
Contention
While the bill has intentions rooted in economic advancement, it is not without contention. Critics may argue that the repeal could lead to a decrease in state funds that were previously allocated for public projects through this tax revenue. There may also be discussions around whether this move disproportionately benefits larger contractors at the expense of public funding necessary for community projects. Such debates are expected as the bill progresses through the legislative process.
Lower the state sales tax rate and the state use tax rate on food to zero percent, and to increase certain gross receipts tax rates, excise tax rates, and use tax rates.
To refer to the voters the question of whether this state should lower the state sales and use tax rate on food to zero percent, and to increase certain gross receipts tax rates, excise tax rates, and use tax rates.
Lower the state sales tax rate and the state use tax rate on food to zero percent, and to repeal a conditional reduction of certain gross receipts tax rates.
Labor: hours and wages; prevailing wage; require on certain solar and wind energy projects, and require contractors to obtain a registration to perform work on certain projects. Amends secs. 1, 2, 8 & 22 of 2023 PA 10 (MCL 408.1101 et seq.) & adds secs. 2a & 25a.