Debate begins on sales tax cut on South Dakota groceries (Audio)

January 26, 2023

PIERRE, S.D.–Debate has begun in Pierre on cutting South Dakota’s 4 1/2 percent state sales tax on groceries.

It became a centerpiece of Governor Noem’s most recent re-election campaign.

The House Tax Committee voted 12-to-1 this (Thursday) morning on a “do pass” recommendation, and sent it to the House Appropriations Committee for further debate.

Jim Terrwilliger with the South Dakota Bureau of Finance says this is a tax cut the state can afford…

Terwilliger says the growth is sustainable.

Nathan Sanderson with the South Dakota Retailers Association spoke against the tax cut, arguing it’s not sustainable…

The only “no” vote in committee came from Representative Roger DeGroot from Brookings. He’s concerned with the long-term impact on education, and says the state has other needs…

This bill does not cut the local sales tax on food.