Noem vetoes plan to let cities hike temporary lodging taxes

PIERRE, S.D. (AP) — South Dakota Republican Gov. Kristi Noem has issued her first veto of the 2023 session. She vetoed a proposal that would have allowed cities to hike taxes on temporary lodging to help fund events and attractions to draw tourists.

Proponents argued the hike would benefit such things as sports and livestock shows, and that out-of-state tourists would shoulder most of the costs.

But Noem and other opponents said the potential hikes could also harm the state’s rural residents who travel to cities for doctor appointments, education or recreation.

Republican Sen. Tim Reed of Brookings, who sponsored the bill, said hotels and campgrounds support the measure.

The bill barely cleared the Senate and so the votes are likely not there to override the veto.

March 3, 2023