However much tax revenue legalized marijuana might generate, South Dakota doesn’t need it. The state apparently already has so much excess revenue that it’s giving away cash to big businesses:
A major U.S. defense contractor will get a large refund of its South Dakota sales-and-use taxes as a reward for expanding a facility within the state’s borders.
AMTEC Corporation received approval from the South Dakota Board of Economic Development on Wednesday for a tax rebate up to $2,434,648.
…AMTEC is the fifth major business so far in 2026 to receive the board’s approval for a Reinvestment Payment Program rebate.
The businesses which previously received approvals this year — Hydro Extrusion at Yankton, Dakota Ethanol at Wentworth, Agropur at Lake Norden and Smithfield Packages Meats Corporation at Sioux Falls — totaled some $33 million in potential sales and use tax rebates.
The state board in 2025 approved eight businesses for Reinvestment Payment tax rebates totaling more than $11.8 million [Bob Mercer, “2 Businesses Awarded Big Tax Breaks by State Board,” KELO-TV, 2026.07.08].
Note that the Legislature will only give you a break on your property taxes if it can find a way to make up for the lost revenue, by, say, raising the tax on your groceries. But the state will give up $33 million in tax revenue from big corporations with no talk of how to recoup that money within this fiscal year’s budget.
They read the same books that Ken Griffin doesn’t read.
Let’s feed el gato gordos lots of money and let the children forage for themselves.
How much of these welfare handouts will go to struggling families to help keep fathers on the straight -and-narrow by lifting them and their families out of poverty? (And out of correctional system run-is?)
Or is that only a question when virtue signaling on prison discussions?
Someone in SD realizes it takes money to make money? Say it ain’t so, Ole.
Loans would be a better option than tax forgiveness. The loans could be for equipment and operating cash to get the business operating. The loans could even be for Zero interest and not require repayment to begin for several years. By doing this tax revenue would not be impacted and the repaid loan money could be used to help another business.
Helping small businesses especially in small town rural SD would be great. 2 or 3 jobs in a small town is a big deal. Money to help say a small town grocery store to upgrade coolers or refresh the store can mean that small town grocery store will be able to survive into the future and it also mean a few jobs in that small town.