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South Dakota could lose millions in Internet access taxes


Undated (KELO-AM) South Dakota Revenue Secretary Andy Gerlach says the state stands to lose some $9 million if legislation against Internet access taxes passed by the U-S House of Represenatives becomes law. Gerlach says local communities would lose about $4 million.

A moratorium against taxing access to the Internet was first enacted in 1998, but South Dakota and six other states that already had such taxes were allowed to keep them. This new legislation would extend the moratorium to the 7 grandfathered states.

Gerlach says that revenue from the access tax goes into the general fund so it could be used to fund education, criminal justice and social programs.

Gerlach says he has expressed his concerns to South Dakota's Congressional Delegation, but Senator John Thune (R), for one, praised the House vote. Thune is the lead Republican sponsor of the bill in the U-S Senate.