Legislative leadership discuss defeat of Governor’s plan to cut food sales tax

Democratic legislative leaders say Republican Gov. Kristi Noem is to blame for failing to pass her campaign promise to take the sales tax off food.

The House Appropriations Committee defeated House Bill 10-75 on a vote of eight-to-one on Tuesday, sending it to the 41st Legislative Day.

Democratic House Minority Leader Erin Healy said that the lack of gubernatorial news conferences to sell her plan to the public and her failure to engage legislators before the vote led to the defeat.

Republican leaders said it is because of Gov. Noem’s prudent budgeting and leadership that legislators can consider historic tax cuts, such as reducing the state sales tax from 4.5 to 4.2 percent.  Also, a governor being rebuffed by their party is not unusual.

Republican Senate President Pro Tem Lee Schoenbeck. 

Republican Senate Majority Leader Casey Crabtree of Madison said Republicans and the Governor have different methods to get to the same place.  Republicans hinted that the Senate might have other ideas about the best approach to cutting taxes. Those include a property tax reduction, a sales tax reduction, or an end or reduction of the sales tax on food. 

The Democratic and Republican leadership held their weekly news conferences on Thursday. 

February 24, 2023

(Thanks, Todd Epp, SDBA Legislative Reporter)