Noem, Sutton support tax cuts after online sales tax ruling

SIOUX FALLS, S.D. (AP) - South Dakota's two top governor candidates are talking tax cuts rather than new spending after a recent U.S. Supreme Court ruling that could yield millions of dollars in online sales taxes for the state.

Republican Kristi Noem's campaign says she backs a current law that requires a 2016 sales tax hike for teacher pay be scaled back if the state collects from out-of-state online retailers.

Under the law, the state's 4.5 percent rate is to be rolled back by one-tenth of a percent for every additional $20 million the state reaps, with a floor of 4 percent.

But Democratic candidate Billie Sutton says he would explore tax breaks such as lowering food or property taxes. Sutton says changing the existing rollback in law is "in the hands of the Legislature."

Constitutional Party candidate Terry LaFleur contacted KSFY News. He says he believes no-one should pay taxes on groceries and hygiene necessities ; things we need to survive on a day-to-day basis.

This story has been update to include comment from LaFleur. The Associated Press contributed to this story