A proposal to temporarily suspend South Dakota’s gas tax is drawing mixed reactions from Republican candidates for governor.
According to South Dakota Searchlight, House Speaker Jon Hansen is calling for a special legislative session to pause the state’s 28-cent-per-gallon gas tax during the summer, saying the move could save taxpayers about $50 million. Hansen cited rising fuel costs, with the average price of gas more than a dollar higher than a year ago.
Hansen suggested the state could use funds from its economic development reserve, known as the Future Fund, to offset the lost revenue.
However, his opponents are not backing the idea. A spokesperson for Gov. Larry Rhoden said the proposal is “not ready for primetime,” warning that failing to provide required state funding could jeopardize federal highway dollars.
U.S. Rep. Dusty Johnson said he is instead focusing on federal legislation to allow year-round sales of E15 gasoline, which could help lower fuel prices nationwide.
Meanwhile, a spokesperson for candidate Toby Doeden questioned the timing of Hansen’s proposal, noting it comes during peak tourism season when out-of-state visitors contribute heavily to South Dakota’s economy.
The proposal comes as rising oil prices — influenced in part by international conflict — continue to drive up fuel costs across the region.
Meghan O’Brien https://southdakotasearchlight.com/
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