In September, Noem assured voters that if re-elected on November 8, she would repeal the grocery tax. At that time, a report from the Manage and media pool he quoted the gubernatorial candidate as saying, “What I hear from families is they can’t believe how much groceries cost.”
Furthermore, the “Republican governor blamed President Joe Biden, citing rising gas prices and inflation as a heavy blow to South Dakota families.”
The outlet also noted that state legislators have been trying to eliminate the sales tax on food for several years. During the most recent legislative session, several Republicans joined Democrats in fighting to repeal the food tax, but the motion ultimately lost in the Senate, 22-9.
The Associated Press also chimed in, sharing that Noem called his proposal “the biggest tax cut in South Dakota history.”
Now, however, there is already talk in the state that Noem will not keep his promise during the 2023 legislative session. If this happens and the matter comes to a vote, there is likely to be a big divide among voters.
In a new article, administer and notes, “there is already controversy over the wording of a proposed ballot measure and its potential impact on tax revenue.”
Dakotans for Health, a grassroots nonprofit, submitted proposals in July 2022 for both an initiated measure and a constitutional amendment that would prevent the state from taxing “anything sold for human eating or drinking, except alcoholic beverages, tobacco or prepared food. .”
The Legislative Research Council, a nonpartisan group that provides legal guidance for proposed ballot measures, filed a tax memo in October 2022 estimating a $119.1 million loss in annual revenue if South Dakota completely eliminates its income tax. food 4.5%. The LRC also stated that “municipalities could continue to tax anything sold for food or drink.”
The current controversy stems largely from the fact that the LRC’s language differs from the official explanation of the ballot released by Attorney General Mark Vargo on November 9. This specifically states that the measure “prohibits the state or municipalities from collecting tax on the sales or use of anything.” sold to eat or drink by humans.”
Adding language about municipalities to the amendment means that large cities like Sioux Falls and Rapid City would not be able to set their own tax on grocery items. So far, this has not been proposed by the Noem or Dakotans For Health administration.
Most municipalities collect 2% on groceries in addition to the current state tax rate.
Former Democratic Senate candidate Rick Weiland told Keloland: “Basically, the left hand didn’t know what the right hand was doing in the state capital.
He continued: “We have an explanation on the ballot that says one thing and a fiscal note that says another.”
At this time, it is unclear if Governor Noem will repeal the tax during the 2023 legislative session. If he does, the wording of the potential ballot measure will become a moot point.
What do you think about the South Dakota grocery tax controversy?
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