SD: Group says it's filing petition signatures to put grocery tax repeal on ballot
South Dakota and Mississippi are the only states that have a full state sales tax rate on groceries, but that could change in November.
Circulators of a petition to repeal the state sales tax on groceries said they planned to turn in enough signatures Wednesday to the South Dakota Secretary of State’s Office to place the measure on the Nov. 5 ballot. The office must still verify that enough of the signatures are from registered South Dakota voters.
The ballot initiative would repeal the state sales tax on anything sold for human consumption, except alcoholic beverages and prepared food. It does not prohibit cities from taxing groceries. Currently, the state has a 4.2% sales and use tax, and cities can tack on an additional 2% tax.
The state sales tax rate was 4.5% before state legislators reduced it during the 2023 legislative session. Legislators included a sunset clause to make the tax reduction expire in 2027, in part out of caution in case voters approve the grocery tax repeal. The reduction in the sales tax rate was estimated to cost the state more than $100 million in annual revenue, and the grocery tax repeal would cost an estimated $124 million in annual revenue.
https://southdakotasearchlight.com/2024/04/24/grocery-food-sales-tax-petitions-filed-ballot-measure-south-dakota/
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