Collectible coins and bullion would become subject to sales tax in South Dakota and the tax rate would increase for boats longer than 12 feet, according to recommendations by the Legislature’s sales tax review panel.
According to the state Revenue Department’s estimates, the suggested changes would not raise much in additional revenue for state government’s treasury.
Rep. Mark Willadsen, R-Sioux Falls, agreed to carry the legislation to eliminate the sales-tax exemption for coins and bullion. The repeal will generate about $32,000 annually, based on collections prior to the exemption’s passage in 2007, Revenue’s Jan Talley said.
The sponsor of the coin and bullion exemption was the late former Rep. Gordon Pederson, R-Wall, whose funeral is Thursday.
The vote was 8-7 today in favor of seeking the repeal. Several legislators declined to vote for recommending repeal because of the timing.
“I’d hate to walk by and have him sit up in the casket,” Rep. Mike Verchio, R-Hill City, said.
The vote was 11-4 to recommend changing the tax rate on purchases of boats longer than 12 feet. The current excise tax is 3 percent. The panel’s proposal is to repeal the excise tax and levy the standard state sales tax of 4 percent.
Sen. Tom Hansen, R-Huron, volunteered to carry the boat-tax legislation. Making the vote easier for some panel members was the knowledge that shorter boats already are subject to the 4 percent tax rate.
The full Legislature will be asked to consider proposals of the panel during the 2012 regular session that opens in January.