State House Committee debates cutting sales tax on food

Debate begins in Pierre on cutting the state’s four-and-a-half percent sales tax on food.  The move has been attempted for years but now has the backing of Republican Governor Kristi Noem.  The House Taxation Committee on Thursday voted 12-1 to send House Bill 10-75 to the House Appropriations Committee with a “do pass” recommendation for further debate.

Jim Terwilliger with the state Bureau of Finance said the state can afford this tax cut.

Terwilliger said this growth is sustainable.

Nathan Sanderson with the South Dakota Retailers Association spoke against the cut. He said they’ve opposed repealing the food tax 27 times in the last 20-years.  He said this is not sustainable.

Representative Roger DeGroot of Brookings supplied the lone vote against the measure. He’s concerned with the long-term impact on education and said the state has other needs. This bill does not cut the local sales tax on food.

January 27, 2023

(Thanks, Brookings Radio)