If passed, SB178 will directly impact the cost of aviation operations in South Dakota, as the increased taxes will likely lead to higher fuel prices for consumers, including commercial airlines and private aircraft owners. Proponents of the bill argue that the additional revenue generated from this tax increase is necessary for maintaining and improving air transportation infrastructure in the state. However, there is a concern among some stakeholders that the increased operational costs may deter new investors or negatively impact air travel affordability in the region.
Summary
SB178 proposes to increase the tax rates on aviation gasoline and jet fuel from the current rates to seven cents per gallon for aviation gasoline and four cents per gallon for jet fuel. This amendment to the existing section of the South Dakota codified laws aims to generate additional revenue for the state, which could be allocated towards various public needs, including infrastructure development and maintenance. The intention behind this bill is to ensure that fees associated with aviation fuel usage reflect the current economic conditions and contribute adequately to state coffers.
Sentiment
The sentiment surrounding SB178 appears to be mixed. Supporters, including some state legislators and infrastructure advocates, view the bill as a necessary step towards improving state funding for aviation infrastructure. They argue that without such a tax increase, the quality and maintenance of airports may suffer. In contrast, opponents, particularly from the aviation industry, express apprehension that the tax hikes could impose an undue burden on operators, potentially leading to higher ticket prices or reduced service availability.
Contention
Notable contention around SB178 stems from a debate about the balance between funding state projects through tax increases and the potential economic repercussions on the aviation sector. Critics of the tax increase warn that elevating fuel costs could compromise competitive pricing for airlines, leading to reduced customer demand. Furthermore, discussions have highlighted the importance of ensuring that the revenue generated from this tax increase is transparently allocated towards aviation-related improvements to justify the additional costs imposed on users.
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.