The South Dakota Legislature has approved a bill that would withhold liquor licenses from tribes unless they ensure the state's tobacco tax is collected.

The bill requires all liquor license holders collect and submit city and state sales taxes, the unemployment insurance tax, tobacco taxes or any other state taxes. Supporters say it will make sure the tobacco tax is collected on the sale of cigarettes to non-Indians.

According to state attorney general Larry Long, four tribes are not collecting the tax. He said five tribes have signed tax compacts with the state.

The Senate voted 34-1 and the House voted 53-15 to pass SB98. The bill now goes to Gov. Mike Rounds (R) for his review.

Get the Story:
Liquor licenses could be withheld under bill (AP 3/1)

Relevant Links:
South Dakota Legislature - http://legis.state.sd.us

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