The backer of a ballot question to remove the state sales tax on items sold for human consumption says the group opposed to the idea is using fear to persuade voters.
With a recent sharp increase in the cost of food since 2019, backers of a ballot question to remove taxes on items consumed by people hope to alleviate some of that pressure. They say the campaign against their measure alleging it will lead to a state income tax is a scare tactic.
“Their fear-based campaign of hypotheticals is not a reason to vote against [Initiated Measure 28] when we’ve got people who are struggling in our state," said Rick Weiland, the primary sponsor of IM 28. "I think Gov. Noem saw that when she was running for reelection.”
In 2022, Noem campaigned on removing the state sales tax on food. State lawmakers rejected the idea, instead temporarily cutting the overall state sales tax by 0.3 percent.
Weiland said groups opposed to the measure say it’s poorly written because they don’t like what it does.
An LRC report from July says items possibly being defined as human consumption could add up to over $646 million. Weiland calls it a hypothetical, pointing to nearly $1.4 billion in state sales tax exemptions.
Critics of the measure say it will jeopardize the state’s low tax burden.
“The money’s going to come from somewhere," said Nathan Sanderson, with South Dakota Retailers and the group opposed to IM 28.
“If we can’t collect a sales tax, then the only two options are higher property taxes to make up for the reduction to K-12 education, or a state income tax,” Sanderson added.
Sanderson said the bulk of the state’s $1.4 billion tax exemptions are for agricultural inputs and health care.
Oct. 21 is the deadline to register to vote. Early voting is already underway. Election day is Nov. 5.
