South Dakota efforts to repeal the state sales and use taxes on coin transactions was accomplished swiftly.
?We?ve been working on it for eight months,? said Dick Phipps of Rapid City.
The effort was led by the Black Hills Coin Club. Phipps said it didn?t hurt that one of the club members is Gordon Pederson, a state representative.
?We?re a little bit fortunate,? Phipps said. He added that he had friends in Iowa and the effort was patterned after what was done there.
Phipps said April 2 that the governor had signed the bill three weeks ago, but a formal signing ceremony was held March 26. Joining Gov. M. Michael Rounds was Rep. Pederson, Phipps and Paul, Patricia and Brian Chabot.
The state sales tax repeal takes effect July 1. The state sales tax is 4 percent but there are add-ons. In Rapid City, Phipps said, the city tax is 2 percent and there is a 1 percent tourism tax. These levies also will no longer apply to coin transactions.
Under terms of the legislation, ?There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of coins, currency, or bullion. For the purposes of this section, the term, bullion, means any bar, ingot, or commemorative medallion of gold, silver, platinum, palladium, or a combination of these metals where the value of the metal depends on its content and not the form. For the purposes of this section, the terms, coins and currency, mean any coins or currency made of gold, silver, or other metal or paper which is or has been used as legal tender.?
