Senate Taxation Committee passes SJR510

PIERRE, S.D. (SDBA) — Voters could see a legislative-endorsed measure on the November ballot that would end the sales tax on food.

The Senate Taxation Committee voted 4 to 2 Friday to send SJR510 to the Senate.

However, the committee also defeated a similar bill that would have the legislature and governor enact removing the 4.2% sales tax on food.

While most of the Republicans on the committee expressed dislike of the resolution to put the tax repeal on the ballot, they said SJR510 was better drafted than another possible citizen-initiated measure that could go on the 2024 ballot.

They also noted that the passed resolution would not take the local 2% sales tax off food, while the citizen-proposed measure would.

The sponsor of both measures, Democratic Sen. Reynold Nesiba from Sioux Falls.

Noem proposed a bill last session that would have removed the state sales tax on food.

Presentation Sister Lynn Marie Welbig spoke in favor of both measures.

South Dakota Retailers Association executive director Nathan Sanderson opposed both measures.

Last year, supporters testified that removing the sales tax would remove about $104 million from state revenues.

The committee voted 5 to 2 to send SB164 to the 41st day, effectively killing it.

After an attempt to do the same failed 3 to 3 on SJR510, the committee voted 4 to 2 to send SJR510 to the Senate.