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Gov. Noem’s plan to repeal food tax killed in committee Wednesday

(South Dakota Broadcasters Association) A legislative panel this morning (Tuesday) kills Republican Gov. Kristi Noem’s plan to reduce the state sales tax on food from 4.5% to 0%.

The House Appropriations Committee defeated the bill 8 to 1, sending it to the 41st legislative day.

Gov. Noem spoke in favor of HB 1075, her groceries tax cut measure. 

She said her proposal would help every South Dakotan, particularly those on fixed or low incomes.

Before consideration of the Governor’s proposal, the committee passed a bill that would reduce the sales tax on nearly all goods and services from 4.5 to 4.2%.

Republican Rep. Chris Karr from Sioux Falls, the sponsor, said it was a scalable way of reducing taxes.

That bill, HB 1137, passed on an 8 to 1 vote and heads to the floor of the House.

Both bills would reduce state sales tax revenue by $102 to $104 million. 

The committee will also consider HB 1043, which would cut property taxes on owner-occupied single-family homes. 

This is a developing story. 

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