Nov 06, 2024
SIOUX FALLS, S.D. (KELO) -- Initiated Measure 28 measure would have done away with the state's share of the sales tax on items for human consumption. Supporters say eliminating the tax on groceries is one of the best ways to help families that are struggling financially. South Dakota is one of two states that still taxes groceries at the full rate. However, the measure was rejected by around 70% of voters. Mayor Paul TenHaken, a vocal opponent, believes it failed because voters tend to reject things they don't fully understand. "This was a really confusing initiated measure, it wasn't written real well and that's where the confusion came in," TenHaken said. "You know these terms like human consumption and can municipalities still charge when it says we can but state law says we can't I think legislation has to be very clean, very tight, very bullet proof this was not that." It was estimated the state would have seen a reduction in sales tax revenue of $123.9 million a year. The measure's sponsor, Dakotans for Health co-founder Rick Weiland wasn't available Wednesday but did tell us he doesn't think the Legislature will take up the issue.Efforts to repeal the tax on groceries in South Dakota may be down for the count, at least for the near future now that both voters and lawmakers have rejected the idea. Gov. Kristi Noem supported a tax cut on groceries, but state lawmakers rejected her plan. They instead voted to lower the general sales tax rate from 4.5% to 4.2% during the 2024 legislative session. The tax cut expires in 2027.
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