HB1075 clears the House Taxation Committee

PIERRE, S.D.(KJJQ)- Debate begins in Pierre on cutting the state’s 4.5 percent sales tax on food. The move has been attempted for years but now has the backing of Republican Governor Kristi Noem.

The House Taxation Committee Thursday voted 12-1 to send HB1075 to the House Appropriations Committee with a “do pass” recommendation for further debate.

Jim Terwilliger with the Bureau of Finance says the state can afford this tax cut.

Terwilliger says this growth is sustainable.

Nathan Sanderson of the South Dakota Retailers Association spoke against the cut. He says they’ve opposed repealing the food tax 27 times in the last 20-years. He says this is not sustainable.

Representative Roger DeGroot of Brookings supplied the lone vote against the measure. He’s concerned with the long-term impact on education and says the state has other needs.

This bill does not cut the local sales tax on food.