Ethanol tax targeted

A S.D. legislator wants to end tax break for ethanol.

The Associated Press

5/19/2008

PIERRE, S.D. — A member of a legislative study committee will push for an end to a 2-cent-per-gallon tax break for ethanol that's made in South Dakota.

State Sen. Jerry Apa of Lead failed to accomplish that task during the 2008 lawmaking session, but he plans to try again when legislators study highway needs and the revenues that finance that construction.

Apa says the ethanol industry has matured and no longer needs the tax break. He says the $4.6 million should instead be used for road repairs and construction.

Sen. Jim Peterson of Revillo opposes an end to the ethanol tax break. He says only a small amount of road revenue is lost.