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South Dakota Budget $48.7M in the Black Through May

But don’t worry, State Fair Commission: if you’re running low on cash from your low-low ticket prices, that state should be able to spot you lots of extra cash.

With one month left in Fiscal Year 2022, the State of South Dakota has taxed South Dakotans and visitors $48.7 million more than the Legislature said it would in the FY 2022 budget:

Bureau of Finance and Management, FY2022 State Revenues from July 2021 through May 2022 compared to February 2022 Legislative revised revenue estimate, posted 2022.06.10.
Bureau of Finance and Management, FY2022 State Revenues from July 2021 through May 2022 compared to February 2022 Legislative revised revenue estimate, posted 2022.06.10.

Sales tax collections for the fiscal year so far are up 2.3%, showing no sign of the “fiscal cliff” predicted by Senator Lee Schoenbeck, Governor Kristi Noem, and other Republicans making excuses last winter for not lowering the state sales tax. South Dakota is also seeing surges in contractor’s excise tax (4.2% better than projections), insurance company tax (up 5.3%), and the income tax we disguise as the “bank franchise tax” (a splendid 34.7% overperformance).

Just in May, we saw $16.0M more in tax receipts than the Legislature predicted in February:

BFM, 2022.06.10.
BFM, 2022.06.10.

The state appropriated only $4.2M to fund the State Fair in Fiscal Year 2023. The May surplus alone could fund the next four State Fairs… or maybe cover the cost of making admission to the State Fair free for the next four years.

13 Comments

  1. sx123 2022-06-15 10:08

    I’d think eliminating or greatly reducing grocery food sales tax would be a possibility.

  2. Amy B. 2022-06-15 10:34

    I guess we’ll be getting another one of Kristi Noem’s “Look what I did! Look what happened because of me!” social media posts. I wonder if there will be some creative accounting to slip some money to the gun range she wants out west.

  3. ABC 2022-06-15 12:35

    Bank franchise tax is just 16 million, whereas lottery brings in 146 million. Gamblers pay a lot!

    Bankers have a cheap tax and vote Republican.

    Increase bankers tax, no sales tax on food and clothing.

  4. P. Aitch 2022-06-15 13:23

    What are the predictions for marijuana tax revenues, and have they been allocated anywhere except the general fund?

  5. grudznick 2022-06-15 13:56

    The winter is coming. So sayeth grudznick. Mark my words and heed them well, hear me now and listen to me later, dance on the berries today.

  6. Cory Allen Heidelberger Post author | 2022-06-15 14:01

    sx, there’s plenty of room to reduce or eliminate completely the tax on food. The rising surplus above would cover about half of the food tax; an extra percentage point or two on those big banks’ income, as ABC suggests, would cover the rest.

  7. Cory Allen Heidelberger Post author | 2022-06-15 14:02

    Grudz, when will winter get here? What will cause it? I suggest any downturn on revenues will happen because the lucky breaks Noem got—tons of federal aid from Trump and Biden to fight covid, our own reckless pursuit of tourism dollars while much of the rest of the country sensible restricted pandemic gatherings, and all those nice wind farms we put up in 2020—are disappearing.

  8. Arlo Blundt 2022-06-15 15:18

    Well…the sales tax on food is busting small, county seat town grocery stores. Their retail prices have to be higher because they don’t get discounts from wholesalers for purchasing in large lots like box stores. Then inflation and supply chain issues produce additional costs and retail prices which increase sales tax collections for the state. Thus the retail price difference can be 10 to 15 cents above the box store or food buying club, like Sams or Costco. Small town consumers can’t be blamed for driving 30 or 40 miles to a “city” to buy their month’s groceries. Tumbleweeds blow down main street past shuttered stores in our small towns. The Governor is not of assistance…she rides on.

  9. Jake 2022-06-15 16:05

    Corey, crickets from grudz-winter must have arrived already, frozen him solid. Arlo, isn’t it obvious ALL the disappearance of the smaller $$$ enterprise on the business scale has happened always under Republican “leadership” or governmental control periods? The Great Depression of 30’s, the sudden collapses in 2008, they all have happened under the political party that believes in the Big Lie, denies truth, and currently hates democracy.

  10. Mark Anderson 2022-06-15 17:27

    Free fair? Now that’s fair. Go to Huron to empty your ….., well you know what I mean, I love rhymes…. I’ll man the Democratic booth and make sure any patriots receive a free six pack. I can pick up all I need at Kesslers in Aberdeen. It’s been awhile, what brand would be best?

  11. grudznick 2022-06-15 17:27

    Winter is coming in a year or two. The big recession is being caused by all the free printed funny money from Mr. Uncle Joe Biden.

  12. Arlo Blundt 2022-06-15 20:35

    Grudz ..we’ve had a recession every ten or 12 years since 1893. Usually during a Republican administration. The last one was the 2008 melt down.We’re due though the Covid years may have been this decade’s recession. The current inflation doesn’t cut accross all sectors. Big Oil has never had higher profits…Exxon was mismanaged and way down on the board but is a good value right now.

  13. Mark Anderson 2022-06-15 21:49

    Oh brrrr grudz, I love my printed money and winter is never coming to Nokomis. Have a nice summer what is the high this week, 105?

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