SD House rejects Senate attempt to revive grocery sales tax repeal bill

PIERRE, S.D. (SDBA) – Without debate, the South Dakota House this morning rejected the Senate’s “hog house” of a bill to revive removing the sales tax off food.

The House rejected HB 1094 55 to 14 to both not concur and not appoint a conference committee.

The remaining sales tax cut before the legislature is HB 1137.

It left the House as a reduction in the state’s comprehensive sales tax from 4.5% to 4.2%.

The Senate amended it to 4.3%.

That changed the sales tax savings from $104 million to $69 million.

It would also “sunset”–end–on June 30, 2025, unless a future legislature extends the cut, expands it, or ends it.

Taking the 4.5% sales tax off groceries was a significant plank in Republican Gov. Kristi Noem’s 2022 election campaign.

Gov. Noem has hinted she would veto the budget if the grocery sales tax does not pass.