Chair of Appropriation Committee not commited to repeal of grocery tax

YANKTON, S.D.(WNAX)- One of the big questions waiting for South Dakota legislators will be Governor Kristi Noem’s proposal to cut the sales tax on groceries, which would reduce ongoing state revenues by over one hundred million dollars a year.

Senator Jean Hunhoff of Yankton, Chair of the Appropriations Committee, isn’t prepared to commit yet.

Hunhoff says the state economy is still supported by hundreds of millions of federal pandemic dollars.

Hunhoff says there are concerns growing costs will overtake the expected increase in other sales taxes.

Final budget details won’t be worked out until the final days of the session in March.