PIERRE, S.D. (SDBA) — Senators kill a resolution Monday that would have placed the repeal of the state sales tax on food on the 2024 ballot.
The measure failed on a 5 to 27 vote.
Democratic Sen. Reynold Nesiba from Sioux Falls, the resolution’s sponsor, said the measure was based on Republican Gov. Kristi Noem’s attempt last year to repeal the sales tax on food.
Nesiba said this version of the repeal was better than an initiated measure that is circulating. He said it was revenue neutral, as it would have increased the sales and other taxes to 4.5% from 4.2%.
Last session, the legislature rejected Noem’s removal of the sales tax on food and instead implemented the 0.3% decrease in the overall sales tax.
Republican Sen. John Wiik (wick) from Big Stone City supported Noem’s bill last session. However, he said the state had already provided the most significant tax decrease in history last year.
Wiik also said the Governor’s measure failed in the House last year and would face a similar fate this year.
The Senate debated the measure for about five minutes.
