Oct 11, 2024
SIOUX FALLS, S.D. (KELO) -- In just a few weeks South Dakota voters will decide on seven different measures and amendments on the ballot. Initiated Measure 28 would eliminate taxes on things that people consume, including groceries. A yes vote supports prohibiting the tax and no vote leaves current tax in place. One reason the amendment is receiving opposition is the wording of the measure. Business and Government leaders opposed to IM 28 gathered at the Ramkota today in hopes of reaching voters. "More than 60 organizations have signed on as opponents to IM 28 and more than 75 cities and towns have passed resolutions are in opposition to IM 28. And so we are encouraging South Dakota voters to get informed get educated and vote no on IM 28 this fall," said Nathan Sanderson of the South Dakota Retailers Association. How Call to Freedom is helping prevent sextortion in SF They say IM 28 is too confusing and leaves too many questions unanswered. They also say the measure could deprive local governments of critical funding."Its very unclear whether or not cities will be able to continue to collect sales tax and use tax based off of poor drafting of IM 28 and its conflict with SDCL 10-522," said Sam Nelson the General Counsel for the Municipal League. The co-founder of "Dakotans for Health" the group behind the tax break says that's not true. Rick Weiland points out the fiscal note on the ballot says the State could see a reduction in sales tax revenues of $123.9 million annually. "We have it on the actual law itself, municipalities can continue to collect the tax that's also on the fiscal note," said Weiland.There is also criticism that the legislature will have to fix any problems. The Attorney General's explanation does include the statement, "Judicial or legislative clarification of the measure will be necessary."However, Weiland doesn't think that will think that will be needed. "I would say there is nothing to fix, the intention is pretty clear." However, some state lawmakers like Tim Reed of Brookings are still concerned. "If this does pass and he expects the legislature to figure out what did the public really mean, what did the voters really want, did they want things for human consumption? Or do they just want a grocery tax we don't know, right because it's not clear in this bill," said Reed. Currently South Dakota and Mississippi are the only two states that apply the full state sales tax rate to groceries, while 11 other states pay a lower statewide sales tax for groceries.
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