A South Dakota campaign supporting an initiative that would ban the state sales and use tax on groceries submitted signatures to the secretary of state’s office on April 24, 2024. According to Rick Weiland, the co-founder of TakeItBack, the campaign supporting the initiative, about 25,000 signatures were submitted. For the measure to make the ballot on Nov. 5, 2024, 17,509 valid signatures are required.
The measure would prohibit state sales taxes on anything sold for human consumption but specifies that it would not prohibit taxes on alcoholic beverages or prepared food, which is defined as food that is sold heated or with utensils. It would also not prohibit municipalities from establishing additional taxes on groceries.
Currently, South Dakota and Mississippi are the only two states that have a full state sales tax rate on groceries. South Dakota has a 4.2% sales and use tax on groceries, and allows for cities to establish an additional 2% sales tax. Previously, the state sales tax was 4.5%, but the state legislature reduced the state sales tax from 4.5% to 4.2% for four years in 2023.
Weiland said that the measure would address food insecurity in the state. “Removing the state’s sales tax on groceries is a crucial step towards addressing food insecurity and promoting economic fairness in our state,” he said.
The measure was endorsed by the South Dakota State Federation of Labor AFL-CIO. The president of the organization, B.J. Motley, speaking in support of the measure, said, “Our low-income working families are struggling, with some spending up to 30% of their household income to feed their families. This inequality is unacceptable, and we stand ready to partner with TakeItBack to address this pressing issue.”
Opponents of the initiative include Senate President Pro Tempore Lee Schoenbeck (R). Sioux Falls Mayor Paul TenHaken (R) also spoke in opposition to the measure, saying, “If this ballot measure is approved in the upcoming fall election, our community would see a substantial reduction in sales tax revenue. That would profoundly impact the services we can deliver to the public.”
If the initiative is approved for the ballot, it will join two other measures currently on the Nov. 5, 2024, South Dakota ballot. The current measures certified for the ballot are:
- A constitutional amendment that would change male pronouns in the constitution to gender-neutral terms or titles.
- A constitutional amendment that would provide that the state may impose work requirements on eligible individuals to receive Medicaid benefits.
