PIERRE, S.D.(DRGNews)- The Pierre City Commission has approved the town’s 2025 budget at just over $60 million. And, like municipal governments across South Dakota, they’re closely watching what happens with Initiated Measure 28 on the November 5, 2024, general election ballot.

Supporters say IM28 would eliminate the State of South Dakota’s portion of the sales tax charged on most things sold for human consumption, thus helping lower income people make their dollars go further. They say municipalities tax stream won’t be affected. However, opponents of IM28 say the wording of the measure is vague so there’s a chance municipalities could be impacted. They also say the unclear verbiage could result in the removal of the sales tax on things such as tobacco, alcohol and candy.

Pierre Mayor Steve Harding says the town has two primary sources of revenue– sales tax and utility rates. He says based on their understanding of what happens if IM28 is approved, the town could no longer charge a sales tax on items people consume.

Harding says if voters pass IM28, the budget passed this week will be “unworkable” because of the sales tax revenue stream will be cut off.

Local government entities across South Dakota have taken a formal stance on IM28 and Harding says Pierre will be doing that as well.

Pierre’s other source of income is utility rates which fund operations, maintenance and improvements in each of their respective utilities. The town’s 2025 budget implements a 3% rate increase for electric, water and wastewater.