S.D. Lawmakers Urged To Scrap Ad Tax Plan

PIERRE, S.D. (AP) — Representatives of South Dakota newspapers and radio and television stations have urged a legislative panel to reject a proposal that would apply the state sales tax to advertising.

The Legislature’s Sales Tax Review Committee is trying to identify additional goods and services that could be subject to the sales tax in an effort to increase state revenue.

One of the proposals would tax advertising to raise an estimated $7 million.

But Dave Bordewyk of the South Dakota Newspaper Association says a tax on advertising would lead to a reduction in advertising, which in turn would lead to a decline in business sales.

Bordewyk and Steve Willard of the South Dakota Broadcasters Association say no other states tax advertising because it is difficult to determine how to apply the tax.