PIERRE, S.D. (MITCHELLNOW) Senate President Pro Temp Lee Schoenbeck and Speaker of the House Hugh Bartels recently co-authored a letter to Initiated Measure 28 sponsor Rick Weiland demanding he stop stating that the state’s nonpartisan Legislative Research Council (LRC) authored and endorsed IM-28.
In the letter, Schoenbeck and Bartels state, “LRC did not recommend using that language. In fact, the LRC recommended something entirely different than the language you are sponsoring and that will be on the November ballot.”
“One important lesson South Dakotans can take away from the discussion about IM-28 is that words matter,” said Nathan Sanderson, Executive Director of the South Dakota Retailers Association. “South Dakota laws are carefully crafted to avoid unintended consequences, but IM-28 clearly has drafting errors that will cause major problems for our state. It’s critical to vote no on this irresponsible measure.”
Weiland has stated at public forums and in interviews that IM-28 uses the term “human consumption” because those were the instructions of the Legislative Research Council. On the Saturday, Oct. 5, 2024, episode on Inside KELOLAND, Weiland was asked why the measure uses the term “human consumption” rather than groceries. Weiland responded:
“Well, it was a recommendation that came from the LRC. We had eating and drinking on our first draft and they said that was too vague; that they thought it needed to be narrowed and they suggested human consumption.”
In a letter to Dakotans for Health on Dec. 22, 2022, LRC recommended revised language based on Dakotans for Health’s first draft of IM-28. The LRC recommended the measure state:
“The retail sale of any food or food ingredient for any purpose is exempt from any tax imposed by law. The exemption provided under this section does not apply to the taxing authority of a municipality. A municipality may tax the retail sale of any food or food ingredient, as provided under chapter 10-52.”
That same letter from LRC states, “Please ensure that neither your statements nor any advertising contain any suggestion of endorsement or approval by the Legislative Research Council.” The full letter is available on the Secretary of State’s website.
The unintended consequences of IM-28’s drafting errors are key reasons more than 60 organizations across South Dakota are opposed to IM-28. IM-28’s faulty language states:
“Notwithstanding any other provision of law, the state may not tax the sale of anything sold for human consumption, except alcoholic beverages and prepared food. Municipalities may continue to impose such taxes.”
“IM-28 is wrong for South Dakota,” said Rep. Tony Venhuizen, vice chair of the House Appropriations Committee. “Even if you believe the sponsors’ claims–and you shouldn’t–there is no plan to make up for the lost revenue. IM-28 will lead to massive budget cuts and it will hurt South Dakotans, not help them.”
The General Election is Tuesday, Nov. 5. Voters can vote absentee now at their local county auditor’s office. More information about IM-28 can be found online at nosdincometax.com.