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Opponents Push Back Against Transportation Funding Taxes

PIERRE, S.D. (AP) — Members of the oil and gas industry are contesting the size and longevity of tax increases included in a roughly $50 million proposal to fund roads and bridges.

The House State Affairs Committee on Wednesday reviewed a measure similar to Gov. Dennis Daugaard’s plan, which raises transportation funding through increases in fuel taxes, fees and other assessments.

Nathan Sanderson from the governor’s office says the proposal addresses a clear need and enjoys significant support.

But the South Dakota Petroleum and Propane Marketers Association says the annual fuel tax increases that stretch until 2030 included in the proposal would make South Dakota less competitive with surrounding states. The fuel tax increases proposed by the Senate would expire in 2023.

A House committee vote could come Friday.