NFIB State Director Calls For Suspension of South Dakota’s Gas Tax

April 22, 2022 Last Edit: June 5, 2025

STATEMENT: Suspending Fuel Tax Would Help South Dakota Small Businesses

NFIB State Director Calls For Suspension of South Dakota’s Gas Tax

NFIB State Director Lindsey Riter-Rapp released the following statement today in response to soaring gas prices and its impact on small business. The leading organization representing small business in South Dakota urged lawmakers for an immediate suspension of the state gas tax arguing the economic situation posed by spiraling gas prices is dire. “While lawmakers had a successful session this year when it came to protecting small business owners from harmful legislation, they gaveled out before taking on an issue that many of our small business owners are struggling with – the rising cost of gas prices,” said NFIB State Director in South Dakota, Lindsey Riter-Rapp. “South Dakota’s small businesses were already negatively impacted by inflation, the struggle to hire workers and the fallout from the pandemic. The dramatic increase in gas prices could be the final nail in the coffin for some of our mom-and-pop shops.” According to the latest NFIB Small Business Optimism Index, 26 percent of small business owners nationwide said inflation is the single most important problem in operating their business, the highest reading since the third quarter of 1981. “Many of our small business owners rely on gas to run their business. When fuel prices go up, their costs go up and ultimately the entire economy suffers since small business owners are forced to raise the prices for their services. Reducing gas prices will ease the burden for everyone in the state,” said Riter-Rapp. While the entire U.S. economy is affected by this development, main street businesses may be the most severely affected. Suspending the $0.30 per gallon state tax on gasoline would reduce the cost of doing business in the state and help not only small business owners, but every consumer in South Dakota. NFIB is calling on the legislature to help small businesses recover during this critical time. As the most recent NFIB data shows, small businesses are still trying to get back on their feet after the COVID-19 pandemic. According to NFIB’s latest Small Business Covid-19 Survey:

About three-quarters (73%) of small business owners have increased their average selling prices due to supply chain disruptions and/or increased compensation due to staffing shortages.
Over half (51%) of small business owners reported supply chain disruptions had a significant impact on their business. Another 30% of owners reported it had a moderate impact and 14% reported a mild impact.
24% percent of owners are currently experiencing a significant staffing shortage and another 18% are currently experiencing a moderate shortage.

Topics:

Taxes

State:

South Dakota

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More