DELL RAPIDS, S.D. – Speaker of the House and Republican candidate for governor Jon Hansen is calling for South Dakota to implement a South Dakota Summer Gas Tax Holiday through a special session of the Legislature, arguing that rising fuel prices, instability, and persistent inflation are continuing to hammer South Dakota families, businesses, farmers, and truckers.
“President Donald Trump is calling for the suspension of the federal gas tax, and South Dakota should do the same thing. Other states are already implementing or considering gas tax holidays. South Dakota should lead, not lag behind or fail to act,” said Speaker Jon Hansen.
Right now, South Dakota’s state gas tax adds 28 cents per gallon to both gasoline and diesel fuel. Coupled with potential federal relief, a South Dakota Summer Gas Tax Holiday could save drivers nearly 50 cents per gallon on gasoline and more than 50 cents per gallon on diesel.
Hansen said that kind of relief would make a meaningful difference for working families, people on fixed incomes, farmers, ranchers, truckers, and small businesses already struggling with rising fuel costs and economic uncertainty.
The state can afford to act without jeopardizing roads or infrastructure funding.
Estimates show a summer gas tax holiday would save taxpayers approximately $50 million. Meanwhile, South Dakota’s “Future Fund,” originally created to support economic development, is currently sitting on more than $60 million in ready reserve dollars which can be used to completely fill any highway funding gap created as a result of the gas tax holiday.
“There is no better use for those reserve dollars than a gas tax holiday that helps South Dakota taxpayers and keeps our economy moving,” Hansen said.
Hansen noted there are two ways to call a special session to get the proposal passed: the Governor can call one directly, or two-thirds of both the House and Senate can petition to convene one.
“I hope the Governor will join me in putting South Dakota taxpayers first by calling a special session to pass a South Dakota Summer Gas Tax Holiday. If not, I will begin the process of petitioning legislators to call one ourselves,” said Speaker Hansen.
“Let’s put taxpayers first and deliver real relief at the pump. Let’s pass a South Dakota Summer Gas Tax Holiday.”
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