PIERRE, S.D. (KELO) — A group of lawmakers wants to make ammunition, firearms and gunpowder tax-free in South Dakota.
House Bill 1078 would make the three categories exempt from both sales and use tax.
A use tax is charged when items are purchased from an unlicensed out-of-state vendor or other reasons where taxes haven’t been paid to South Dakota, but the products are used, stored or consumed in South Dakota.
Efforts of the exact opposite are happening across the country. Cook County, Illinois, has created a $25 tax on each firearm purchased. Seattle has a $25 tax plus a 2 or 5 cent charge on ammunition rounds.
South Dakota sales tax, including local taxes, averages around 6.40%. That makes South Dakota 31st in the nation for tax rate, according to the Tax Foundation.
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