- Associated Press - Tuesday, January 13, 2015

PIERRE, S.D. (AP) - Key state Republicans had varied reactions to the roughly $50 million in tax hikes for road and bridge projects that Gov. Dennis Daugaard has proposed in his annual State of the State speech.

Daugaard highlighted the plan Tuesday as he addressed lawmakers on the first day of the 2015 legislative session. It would take a two-thirds vote of the Legislature to raise taxes.

A separate legislative plan calls for increasing revenue for transportation by $100 million through fuel and vehicle assessments.

Sen. Mike Vehle is the main sponsor. Vehle says he’s pleased Daugaard recognizes the state’s transportation needs, but called the governor’s plan “too frugal.”

Senate Majority Leader Tim Rave of Baltic says he’s had “reservations” about Vehle’s plan, especially a provision to tax fuel typically used in farm equipment.

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