No relief for grocery bills for South Dakotans

PIERRE, S.D. – By a vote of 8 to 1, the South Dakota House Appropriations Committee has defeated the proposed grocery sales tax repeal. The repeal of the 4.5% tax had been a cornerstone of Governor Kristi Noem’s reelection campaign.

HB 1075 has now been sent to the 41st legislative day. However, the measure could be resurrected by a legislative maneuver called a smoke-out. The full House can, by a two-thirds vote, require the committee to deliver the bill for consideration by the full body.

Before consideration of the Governor’s proposal, the committee passed a bill that would reduce the sales tax on nearly all goods from 4.5% to 4.2%. That bill, HB 1137, passed on an 8 to 1 vote and heads to the floor of the House. Republican Rep. Chris Karr from Sioux Falls, the sponsor, said it was a scalable way of reducing taxes. Both bills would reduce state sales tax revenue by $102 to $104 million.

The South Dakota Legislature has two primary proposed tax cuts to consider this session. One is the proposed grocery tax cut, that has now failed. The second is HB 1043, which would cut property taxes on owner-occupied single-family homes.

This is a developing story.

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