South Dakota legislators unanimously approved a measure that would repeal the state tax on trucking services.

The state House voted 68-0 Feb. 11 in favor of the bill, which would revoke a 4 percent state tax on freight picked up and delivered within the state. Out-of-state haulers are permitted to load and transport freight outside the state or bring products in without the same charge, the Aberdeen News reported.

Prior to the House vote, state Rep. Larry Rhoden told lawmakers the tax, which brings in $3 million a year, is unfair. He said it has harmed the trucking sector in South Dakota by switching a lot of truck trade to firms in nearby states. He said many businesses near state borders are choosing to buy products in other states because they can avoid paying the delivery tax.

“It hurts business in the state,” said Rhoden, R-Union Center. “It’s chased a lot of trucks out of the state.”

HB1180 has been forwarded to the Senate for consideration.