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Senate fails to pass bill creating set-aside from contractors' excise tax for Ellsworth-related grants
Summary
Senate Bill 16, which would have set aside contractors' excise tax collections for grants addressing local impacts of Ellsworth AFB expansion, failed to receive the two-thirds vote required on March 3.
Senate Bill 16, which would have set aside contractors' excise tax revenue tied to on-base projects into a fund for local mitigation and grants, failed to pass the Senate on March 3 when it did not reach the two-thirds threshold required for its appropriation structure.
Senator Howard moved an amendment (SB 16 GS) that limited the initial five-year diversion to $1,000,000 per year to the South Dakota Ellsworth Development Authority (rather than an immediate 2% ongoing diversion). Supporters argued the measure would help communities absorb road, school and service impacts tied to B-21-related construction; opponents said the contractors' excise tax is a major state revenue source and argued the carve-out would reduce general fund capacity and set an undesirable precedent.
On the roll call the clerk announced 14 yeas and 21 nays. Because the bill required a two-thirds affirmative vote for the appropriation/change, the president declared the bill lost.
