Newspaper, radio, TV station advocates urge South Dakota legislative panel to reject state advertising sales tax proposal, says tax would lead to reduction in advertising, lead to decline in business sales

Kendall Sinclair

PIERRE, South Dakota , August 25, 2011 (Associated Press) – Representatives of South Dakota newspapers and radio and television stations have urged a legislative panel to reject a proposal that would apply the state sales tax to advertising.

The Legislature's Sales Tax Review Committee is trying to identify additional goods and services that could be subject to the sales tax in an effort to increase state revenue.

One of the proposals would tax advertising to raise an estimated $7 million.

But Dave Bordewyk of the South Dakota Newspaper Association says a tax on advertising would lead to a reduction in advertising, which in turn would lead to a decline in business sales.

Bordewyk and Steve Willard of the South Dakota Broadcasters Association say no other states tax advertising because it is difficult to determine how to apply the tax.

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