PIERRE, S.D. (SDBA) – Without debate, the South Dakota House Tuesday rejects the Senate’s “hog house” of a bill to revive removing the sales tax off food.
The House rejected HB 1094 55 to 14 to both not concur and not appoint a conference committee.
The remaining sales tax cut before the legislature is HB 1137.
It left the House as a reduction in the state’s comprehensive sales tax from 4.5% to 4.2%.
The Senate amended it to 4.3%.
That changed the sales tax savings from $104 million to $69 million.
It would also “sunset”–end–on June 30, 2025, unless a future legislature extends the cut, expands it, or ends it.
Taking the 4.5% sales tax off groceries was a significant plank in Republican Gov. Kristi Noem’s 2022 election campaign.
Gov. Noem has hinted she would veto the budget if the grocery sales tax does not pass.
Whether HB 1137 comes up on today’s House calendar depends on behind-the-scenes negotiations.
Another proposal, HB1141 which would allow a rebate on property taxes was killed Tuesday by the South Dakota House of a 65-5 vote.
Three days are left in the legislative session, with the main run ending Thursday.
Veto Day is set for March 27.