Governor approves extra city sales tax, cigar bars, more gambling tax revenue for Deadwood

South Dakota Republican Gov. Larry Rhoden signed three bills earlier this week that he said align with his “open for opportunity” economic development policy framework. The legislation includes shifting some gambling tax revenue from the state to a Black Hills city, permitting more cigar bars across the state, and allowing cities to temporarily increase their sales tax rate.

“I am committed to keeping our communities strong and South Dakota Open for Opportunity — and that is exactly what these bills do,” Rhoden said in a news release.

All three bills will become law on July 1.

Deadwood gambling revenue

Senate Bill 102 revises the distribution of Deadwood gambling tax revenues, shifting some revenue away from the state and to the city of Deadwood — the only place in the state, other than tribal land, where full casino-style gambling is allowed.

A majority of the revenue is distributed among the Deadwood historic preservation fund, state tourism fund, state Gaming Commission, state general fund, Lawrence County, statewide historical grant fund, and state gambling addiction program. Deadwood’s share from that portion of the money is capped at $6.8 million.

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