This just in the Legislative hopper: a few Republicans are looking for sneaky ways around Governor Daugaard's absolute veto threat on any tax increases. Senate Bill 78 would increase property taxes by allowing county directors of equalization to include tax credits under sections 38, 42, and 47 of the Internal Revenue Code in assessing real property value.
If I'm reading tax law right, Section 38 is the general business credit, which includes the investment credit, work opportunity credit, alcohol fuels credit, low-income housing credit, renewable electricity production credit, Indian employment credit, and a whole whack of other credits of potential interest to South Dakota taxpayers. Section 42 lays out the low-income housing credit specifically. Section 47 is the rehabilitation credit, which could have some impact on two historic Madison properties and a couple dozen total around the state once they get fixed up.
Will Governor Daugaard put the kabosh on SB 78 as a tax increase? Or will prime sponsor and new Republican Eldon Nygaard be able to convince his fellow legislators that this bill in itself isn't a tax increase but simply an adjustment to equalization formulae?