Press "Enter" to skip to content

South Dakota Third for Sin-Tax Reliance

Sin taxes are a tricky political issue. By taxing tobacco, alcohol, and other unhealthy activities, we pin our state spending on activities we ought to discourage. If a state relies heavily on sin taxes, should we criticize that state's leaders for not finding the courage to tax all of its citizens more equitably? Should we praise them for trying harder to get people to kick their bad habits? Or should we get on the general public's case for drinking and smoking so much?

Whether you care to hail or heckle, Bloomberg ranks South Dakota third in its "Dirty Dozen" for state reliance on sin taxes. We got $76 million from our sin taxes in 2012, 5% of our total state revenue. Bloomberg does not include gambling, which kicked in another 7% of South Dakota's state revenues last year.

The only states deriving more of their revenue from sin taxes are Rhode Island (5.16%) and New Hampshire (10.2%).

18 Comments

  1. Michael Black 2013.07.03

    These are taxes that we do not have to pay as individuals.

    And NO WE DO NOT NEED A STATE INCOME TAX.

  2. caheidelberger Post author | 2013.07.03

    Yes we do, Michael. A good state income tax would replace, dollar for dollar, a regressive sales tax and a property tax that does not access the vast wealth available to cover public needs

  3. Rorschach 2013.07.03

    We could stand a bit more sin tax. Sins tax the resources of county governments everywhere. The legislature ought to give counties the authority to impose nickel a drink taxes, which will help cover law enforcement and free up limited funds for other things like road and bridge repair.

    And by giving counties a local option, the anti-tax folks in the legislature won't be responsible for imposing a new tax. They will simply be favoring local control. It's county officials who will be making the tough decision - if it is tough. Is a nickel gonna break you when you buy a beer?

  4. Michael Black 2013.07.03

    That's total BS!

    Another tax will only allow the state government to take more of our money. It's not going to reduce other taxes on a dollar for dollar basis.

    It WILL cost each of us a bunch of time and money to fill out that state income tax form in addition to the money we have to pay in. Businesses will have to spend more time and money to comply with the law. The state revenue dept will gain a new bureaucracy full of employees working hard to justify their existence.

    NO WAY!

  5. Vincent Gormley 2013.07.03

    Mr Black the only BS is your posts. And it is always negative and totally fact free.

  6. Joan 2013.07.03

    I agree with Cory and I also don't think higher sin taxes would kill anybody.

  7. Jana 2013.07.03

    Isn't usury a sin? Don't we make a lot of money off of that?

  8. Les 2013.07.03

    What are your sins Joan and Rors? Do we just guess and tax them to or do we legalize all that other stuff, tax it and clean out the prisons? Win win.

  9. Deb Geelsdottir 2013.07.03

    Income taxes are only a bugaboo to the wealthier classes. Some libertarians are opposed on principle, others more as a knee jerk reaction. The "government taking MY money" is a meme promoted by the wealthier classes.

    If you are opposed to paying taxes, drive on your own personal roads. Hand deliver your own mail. Put out your own fires. Provide your child's education. Remove your own appendix in your own hospital.

    But if you use those public services, know that you pay well beyond your own fair share. You pay a greater share than D. Sanford, greater than Mike Rounds, etc. The lower you are on the financial totem pole, the higher a percentage of your income you pay for those services right now in SD.

    What kind of rationale is that for opposing a state income tax?

  10. Jenny 2013.07.03

    Heard a pack of Marlboro in MN is close to eight bucks now. I don't have any qualm about sin taxes since I rarely drink and smoke, and if I did smoke regularly, I would seriously think about quitting when it's that expensive.

  11. kurtz 2013.07.03

    video loottery is a likely sin tax error.

  12. Deb Geelsdottir 2013.07.03

    That might be about right Jenny. Cig tax just rose by $1.60. When I smoked a carton of 10 cigs was $14. I think a carton of Marlboros is $60 now. Boggles the mind.

  13. kurtz 2013.07.03

    free will and medicaid expansion: without sin southern dakota would cease to exist.

  14. kurtz 2013.07.03

    and yet social security pays most property taxes in the state: how conservative.

  15. Joan 2013.07.04

    Les, I have never drank any type of beer or alcohol or smoked. I am 73 and sure don't plan to start now. In fact a few years ago, being I am an insulin dependent diabetic, with high blood pressure and cholesterol, my doctor told me my clean living was the only thing I had going for me.

  16. Les 2013.07.04

    My doc told to me cut the rib eye steaks, no fast cars, no excessive sex, quit alcohol, tobacco and stop running with the girls using them or I wouldn't make it to old age. I asked him why I'd want to live to old age under those circumstances.

  17. caheidelberger Post author | 2013.07.04

    Les, your doc is a quack. Sex is good for the heart.

  18. Les 2013.07.04

    I'm doing my best to prove him wrong Cory.

Comments are closed.