State Senate Tax Committee passes .3% sales tax reduction to Appropriations Committee

A state Senate committee has favorably recommended reducing the state’s sales tax to the Senate Appropriations Committee from 4.5 to 4.2%, but with a catch.  

On a 6-to-0 vote, the Senate Taxation Committee sent the amended bill to eliminate the tax decrease on June 30th of 2025. 

First, amendment supporters said they think an initiated measure eliminating the state sales tax on groceries will pass in 2024.

Second, regardless if the initiated measure passes, they want to ensure the tax reduction on the broad group of goods and services is sustainable.

House Bill 1137’s sponsor, Republican Rep. Chris Karr, did not support the amendment in his testimony.

Republican Sen. Al Novstrup said it’s a hard decision.

Supporters said reducing point-three-percent in the overall state sales tax would save taxpayers about 104-million dollars annually.

The measure now goes to the Senate Appropriation Committee with a do-pass recommendation.

February 28, 2023

(Thanks, Todd Epp, SDBA Legislative Reporter)