Governor Noem’s push to repeal the sales tax on groceries remains alive this legislative session after the state Senate passed the bill on Monday. The original contents of HB 1094 were removed and replaced with the grocery sales tax repeal. The vote was 18 to 17. Supporters say removing the sales tax on food would save taxpayers about $104 million.
Also on Monday, the Senate passed a reduction in the state sales tax from 4.5% to 4.3%. Supporters of that measure say it would provide $69 million in tax relief over nearly all goods and services. Earlier in the session, the House rejected ending the sales tax on food but supported reducing the overall state sales tax from 4.5% to 4.2%.
There are three days left in the main run of this year’s legislative session for lawmakers to sort through the various tax cut proposals.
(Thanks to SDBA for contributing to this story)