ABERDEEN, S.D.(Press Release) – The Aberdeen Area Chamber of Commerce Board of Directors voted last week to oppose Initiated Measure 28. This is the Consumable Tax Measure which will be on the November ballot. IM28 would prohibit a state sales tax on anything sold for human consumption, except alcoholic beverages or prepared food.
In August, the Chamber Board of Directors was invited to a presentation by Nathan Sanderson, Executive Director of the South Dakota Retailers Association on Initiated Measure 28. After this meeting and additional research into the impacts this could have locally and statewide, the Chamber Board of Directors voted to join the growing coalition opposing this measure. Following are some key points that were considered:
- IM-28 would lead to funding cuts to essential government services or new tax increases. It would eliminate sales taxes on many items other than food, cutting up to $646 million each year and forcing cuts to schools, hospitals, nursing homes, and law enforcement.
- IM-28 would prohibit taxes on “anything sold for human consumption,” except alcohol and prepared food. This poor wording would eliminate taxes on tobacco, vaping products, marijuana, toothpaste, aspirin, toilet paper, and many other products.
- IM-28 would prevent cities and towns from collecting sales taxes on consumable items, leaving Aberdeen with a $2.1 million hole in the city’s budget. This could cause the city to potentially reduce and/or eliminate funding for essential services and programs such as libraries, roads, pools, and parks.
The Chamber felt that this poorly thought-out measure would ultimately end up hurting Aberdeen and South Dakotans who rely on these necessary services the most, which is why they have opposed to IM28. To learn more about IM 28, go to: https://sdsos.gov/elections-voting/upcoming-elections/general-information/2024/2024-ballot-questions.aspx. To see the list of local and state-wide organizations that are part of the coalition, go to https://nosdincometax.com/.
For more information, contact the Chamber at 605-225-2860 or email info@aberdeen-chamber.com.