South Dakota residents will decide on November’s ballot whether to eliminate the 4.5% sales tax on groceries through Initiated Measure 28.
Advocates of the measure, such as Rick Weiland of Dakotans for Health, argue that removing this tax would ease the financial burden on the state’s most vulnerable, including 106,000 food-insecure individuals.
Critics, like Nathan Sanderson of the State Retailers Association, caution that the repeal could result in over $100 million in lost revenue, possibly affecting funding for critical sectors like education and healthcare.
There is also debate over the potential impact on non-grocery items like tobacco, though supporters dismiss these concerns as exaggerated.
South Dakota is one of only two states, along with Mississippi, that still fully taxes grocery items.