PIERRE, S.D. (KELO) — One of the four ‘pillars of protection’ that Kristi Noem laid out during her first campaign for governor seven years ago was a promise to veto any tax increases.
That pledge however evidently doesn’t apply to her current proposals asking South Dakota lawmakers to increase licensing fees on a wide variety of professional and trade occupations, as well as inspection fees.
None of them were mentioned in her speech to the Legislature outlining her budget recommendations for the coming fiscal year that starts July 1.
Nor does it seem to apply to her current proposal to repeal the state sales-tax collection credit that lets businesses withhold roughly $7 million annually as compensation for remitting the taxes.
She did speak about taking away the allowance in her December 3 speech, suggesting that it’s no longer relevant. State law caps the credit at $840 per year.
“Over a decade ago, we encouraged businesses to electronically file sales taxes by providing a credit incentive. This collections process is now normal business practice, and this incentive is no longer necessary,” Noem told lawmakers.
All of this is coming to light as Noem, a Republican, prepares to resign from the governor’s office later this year, possibly before the legislative session ends on March 31, and long before the January 2026 end of her second term, so that she can become U.S. homeland security secretary in President-elect Trump’s new administration.
The 2025 legislative opens January 14 for its 38-day run. Here’s a summary of ten sets of requested fee and surcharge increases so far from the Noem administration that were among the 41 Senate bills and 16 House bills posted as of 4:30 p.m. CT Monday; click on a bill number in blue for details of each proposal.
SB3, sought by the state Department of Public Safety, calls for increasing fees for standard driver licenses and commercial driver licenses, as well as the commercial-license testing fee, reinstatement fees and license-inquiry fees. The bill was assigned to the Senate Transportation Committee for its first public hearing. A hearing date isn’t yet set. Potential financial effects of the potential increases weren’t yet publicly available.
SB24, sought by the state Plumbing Commission, whose members are governor appointed, calls for raising the maximum amount of plumbing permit fees charged when plumbing is installed at a single-family, multi-family or public site, as well as raising the maximum fee for additional inspections. The bill was assigned to the Senate Commerce and Energy Committee for its first public hearing. A hearing date isn’t yet publicly set. State budget documents show that inspection-certificates revenue which totaled $19,910 in fiscal 2023 and $22,125 in fiscal 2024 would rise to an estimated $96,300 in fiscal 2026, while inspection-fees revenue that totaled $358,125 in FY23 and $404,185 in FY24 would reach an estimated $674,460 in FY26.
SB27, sought by the state Cosmetology Commission, whose members are governor appointed, calls for raising the maximum amounts for licensing salons, booths, cosmetologists, nail technicians, estheticians, schools and students. The bill was assigned to the Senate Commerce and Energy Committee for its first public hearing. A hearing date isn’t yet set. State budget documents show that licensing fees revenue which totaled $309,899 in fiscal 2023 and $294,131 in fiscal 2024 would rise to an estimated $551,335 in fiscal 2026.
SB28, sought by the state Barber Examiners Board, whose members are governor appointed, calls for raising the maximum amounts for certifying barbers, licensing barbershops and inspecting barbershops and barber schools. The bill was assigned to the Senate Commerce and Energy Committee for its first public hearing. A hearing date isn’t yet publicly set. State budget documents show that license-fees revenue which totaled $24,635 in fiscal 2023 and $31,877 in fiscal 2024 would rise to an estimated $93,043 in fiscal 2026.
SB31, sought by the state Electrical Commission, whose members are governor appointed, calls for raising the maximum amounts for installation inspection fees. The bill was assigned to the Senate Commerce and Energy Committee for its first public hearing. A hearing date isn’t yet publicly set. State budget documents show that license fees brought in $226,499 in fiscal 2023 and $376,550 in 2024 and would rise to an estimated $626,480 in 2026, while revenue from inspection fees that totaled $1,437,410 in FY23 and $1,229,099 in FY24 would rise to an estimated $2,175,000 in FY26.
SB32, sought by the state Accountancy Board, whose members are governor appointed, calls for raising certification fees. The bill was assigned to the Senate Commerce and Energy Committee for its first public hearing. A hearing date isn’t yet publicly set. State budget documents show that renewal-fee revenue which totaled $211,675 in fiscal 2023 and $236,180 in fiscal 2024 would rise to an estimated $375,320 in fiscal 2026, while exam-fee revenue would go from $8,130 in FY23 and $8,430 in FY24 to an estimated $18,270 in FY26.
SB37, sought by the state Department of Public Safety, calls for making permanent a temporary increase in the 911 surcharge that most telephone customers pay. The Legislature last year increased the surcharge to $2 per month per line from $1.25; the increase was supposed to expire July 1, 2026. The 2024 official estimate, based on similar numbers of lines, was that increasing the surcharge to $2 would generate $19,952,342, or $7,481,503 more than was raised in 2023. The 2025 bill was assigned to the Senate Judiciary Committee for its first public hearing. A hearing date isn’t yet publicly set.
HB1013, sought by the state Department of Public Safety, calls for raising fees for inspecting weight scales, for testing, weighing and measuring devices used in the wholesale or retail sale of liquefied petroleum gas, and for inspecting and testing gasoline and diesel stationary fuel-pump meters and agricultural chemical or liquid fertilizer meters. The bill was assigned to the House Commerce and Energy Committee for its first public hearing. A hearing date isn’t yet set. Potential financial effects of the proposed increases weren’t yet publicly available.
HB1015, sought by the state Funeral Service Board, whose members are governor appointed, calls for raising the licensing fees for funeral establishments, crematory establishments, and funeral directors. The bill was assigned to the House Health and Human Services Committee for its first public hearing. A hearing date isn’t yet set. Potential financial effects of the proposed increases weren’t yet publicly available.
HB1016, sought by the state Pharmacy Board, whose members are governor appointed, calls for increasing the licensing fee for wholesale distributors and creating a new fee for transferring a pharmacy license. The bill was assigned to the House Health and Human Services Committee for its first public hearing. A hearing date isn’t yet set. Potential financial effects of the proposed increases weren’t yet publicly available.
