SIOUX FALLS, S.D. (KELO AM) - Governor Daugaard says fading sales tax collections will impact next year's state budget.
Daugaard says each month's tax reports is worse than the last.'
The Republican Governor says in the first month South Dakota tax revenue was $2 million short and in the next month $4 million dollars shy. He says that's not cumulative, it's that much loss each month. He says this month's sales tax revenue stands to be down as much as $10 million.
Daugaard says those revenues have an impact which will be apparent when he delivers his budget address a week from tomorrow.
He says it will be a much more modest budget proposal than what it would otherwise be. He calls it a "very belt-tight year." He says he's reached out to some veteran state lawmakers to keep them apprised of the low sale tax revenue and how conservative his budget will be.
Daugaard says the trend is disappointing.
He says overall it's a very concerning trend. He says South Dakota's sale tax receipts are just not what they should be.
Economists blame the trend on low ag prices and from people buying merchandise online.
Daugaard will deliver his state budget to the legislature Tuesday, December 6th.
