SD Senate Passes Another Sales Tax Reduction

The state Senate passed another sales tax reduction by a single vote Monday afternoon.

HB 1094 was “hog housed” and replaced with repealing the sales tax on groceries.

The vote was 18 to 17.

Earlier Monday, the Senate also passed a different sales tax reduction. Lowering the overall 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. 

Senator Herman Otten of Lennox led the hoghouse of HB 1094.

Senator Lee Schoenbeck of Watertown said they needed to look at another tax cut. 

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%. 

The Senate version that passed Monday makes the rate 4.3%

There are three days left in the main run of the legislature this week, to find a compromise between the various proposals.