- Associated Press - Monday, May 23, 2016

PIERRE, S.D. (AP) - The South Dakota Department of Revenue is reminding residents and businesses that the state’s sales tax is set to go up next week.

The state’s sales and use tax rate will increase from 4 percent to 4.5 percent on June 1. It is the first permanent increase to the state’s sales tax rate in nearly half a century.

The increase is meant to help boost teacher pay in the state.

The increase is expected to raise about $107 million in the upcoming budget year, most of which will be put toward helping raise the state’s target average teacher salary to $48,500 per year.

About $36.5 million of the increase also will go to property tax relief, and about $3.2 million will go toward salaries at technical schools.



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