Grocery tax for South Dakotans could cost the state money

While most of the revenue could be replaced, there is still a shortfall
Published: Nov. 10, 2022 at 6:11 PM MST
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RAPID CITY, S.D. (KEVN) - Repealing the grocery tax for South Dakotans could cost the state $119 million in revenue, but Gov. Kristi Noem said on Tuesday the state was able to offset that cost due to the recent tax revenue projections coming in $80 million over what was originally anticipated.

But a spokesperson with Dakotans for Health -- the group that submitted an initiated measure to repeal the tax -- says that they only want the food tax removed at the state level, not the city or county level. However, they say the petition description from the Attorney General’s Office doesn’t line up.

“The Attorney General’s Office and the LRC are housed in the same building and aren’t talking to each other, and that’s a problem; our intention was never to ... I wouldn’t even say our intention; our language was only directed at the state’s share of collecting sales tax, not the local government, not municipalities,” said Dakotans for Health co-founder Richard Weiland.

Weiland says that AG Mark Vargo’s description could create problems going forward.

If the measure is approved by the people of South Dakota, shoppers could see relief by July 1, 2025.