PIERRE, S.D. (MITCHELLNOW) The opponents to Initiated Measure 28 (the repeal of the sales tax on food) say that the measure is written too broadly. They point to wording that says “anything sold for human consumption” will be exempt from sales taxes. Opponents point out that phrasing could include things like toothpaste and cigarettes which, while not eaten, are “consumed”.
The repeal of the sales tax on consumables could amount to $176 million and leave a gaping hole in the state budget of South Dakota. Opponents say that will lead to a cut in services, increases in other taxes or a state income tax – potentially all three. City leaders point out that sales and property taxes are their main means of revenue with cities having no control over the rates of those taxes so the impact would not only be felt at the state level but could also have serious local ramifications.
The sales tax repeal, as well a several other issues, will be decided by South Dakota voters at the general election on November 5, 2024.