food sales tax

Gov. Kristi Noem speaks at the Calvin Coolidge Foundation conference at the Library of Congress on Feb. 17, 2023, in Washington, D.C. (Anna Moneymaker/Getty Images)

Legislative Roundup: Noem says no three times, but leaves big questions unanswered

BY: and - March 10, 2023

Gov. Kristi Noem has not vetoed the Legislature’s “historic” sales tax cut this week – which lawmakers passed Thursday in spite of her opposition – but she did flex her veto power. Noem issued her first veto on March 2, using a cattle “VETO” brand on a bill that would have allowed local business improvement […]

Members of the state House of Representatives stand and applaud after a $104 million tax cut bill passed with unanimous support on March 9, 2023, at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

Lawmakers approve temporary sales tax cut worth an estimated $104 million in first year

BY: - March 9, 2023

PIERRE — With just hours left in the last regular day of business in the 2023 legislative session, lawmakers compromised to approve what some described as the largest tax cut in South Dakota history. The plan would reduce the state sales tax from 4.5% to 4.2% for four years, saving taxpayers and costing the state […]

From left, Senate Majority Leader Casey Crabtree, R-Madison, and Senate Majority Whip Ryan Maher, R-Isabel, participate in a conference committee meeting on tax-relief legislation March 8, 2023, at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

House and Senate deadlocked on tax relief deal with time running out

BY: - March 8, 2023

PIERRE — Lawmakers have just one regular day of business left in the 2023 legislative session to pass a tax cut for South Dakotans – and they still haven’t reached a deal. Five options to reduce the state sales tax remain in the mix among leaders in the Senate and House of Representatives, ranging from […]

From left, Rep. Kirk Chaffee, Rep. Taylor Rehfeldt, two legislative staffers, and Rep. Will Mortenson take part in a conference committee March 7, 2023, on a property tax rebate bill alongside Sens. Casey Crabtree, Reynold Nesiba and Lee Schoenbeck (not pictured). (Makenzie Huber/South Dakota Searchlight)

Lawmakers focus on general sales tax reduction, defeating other tax cuts

BY: - March 7, 2023

PIERRE — Gov. Kristi Noem’s grocery tax repeal bill lived for only 17 hours after it was revived Monday. The House rejected the bill Tuesday morning. An hour later, legislative leaders from the House and Senate killed the property tax rebate program the Senate revived last week, with a suggestion to take a closer look […]

Gov. Kristi Noem speaks to reporters March 6, 2023, at the Capitol in Pierre about her revived grocery tax repeal bill. (Makenzie Huber/South Dakota Searchlight)

Senate revives Noem’s grocery tax repeal in session’s final week

BY: - March 6, 2023

PIERRE – The House and Senate are playing tug-of-war on tax cuts, with three days left before legislators leave the Capitol. After the House of Representatives whittled numerous tax cut proposals down to just one earlier this session, the Senate has revived two major competing proposals – including the Gov. Kristi Noem-backed elimination of the […]

Legislators in the Senate Chamber during the 2023 legislative session at the Capitol in Pierre. (Joshua Haiar/South Dakota Searchlight)

Senate passes property tax credits, setting up final-week scramble over tax relief

BY: - March 2, 2023

The state Senate complicated the Legislature’s tax-relief debate Thursday by approving legislation that would provide homeowners with an annual tax credit payment. The Senate passed a bill 31-2 that would send $425 to South Dakota homeowners each year as a way to relieve their property tax burden. The annual cost to the state’s general fund […]

Gov. Kristi Noem attends an event Oct. 12, 2022, at a Sioux Falls grocery store. (John Hult/SD Searchlight)

Noem threatens to pull budget support if lawmakers don’t pass her food-tax repeal

BY: - March 1, 2023

SIOUX FALLS — A final showdown is looming between Gov. Kristi Noem and the Legislature over tax cuts.  During an unrelated bill-signing ceremony Wednesday in Sioux Falls, Noem responded to questions from the media and suggested she would not approve a state budget that does not include her proposed repeal of the states sales tax […]

State Sen. Jim Stalzer, R-Sioux Falls, speaks on the Senate floor during the 2023 legislative session at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

$104 million tax cut plan amended to end in two years

BY: - February 27, 2023

The last major tax cut bill still alive in the Legislature would now only last two years, based on an amendment that the Senate Taxation Committee passed Monday morning. House Bill 1137 plans to reduce South Dakota’s state sales and use tax rate from 4.5% to 4.2%, about a $104 million tax break. The cut […]

Gov. Kristi Noem testifies in support of a bill that would have eliminated the state sales tax on groceries in front of the House Committee on Appropriations on Feb. 21, 2023, at the Capitol in Pierre. (Joshua Haiar/South Dakota Searchlight)

Committee rejects Noem-backed grocery tax cut bill, moves forward with general tax cut

BY: - February 21, 2023

Gov. Kristi Noem’s re-election campaign promise to eliminate the state sales tax on groceries died Tuesday morning in the House Committee on Appropriations, but the committee approved a bill to reduce state sales taxes across the board. The projected $102 million grocery tax repeal was rejected by an 8-1 vote. The committee also rejected a […]

From left, House Assistant Majority Leader Taylor Rehfeldt, Sioux Falls; House Majority Leader Will Mortenson, Pierre; Senate Majority Leader Casey Crabtree, Madison; and Senate Assistant Majority Leader Michael Diedrich, Rapid City, conduct a Republican leadership press conference during the 2023 legislative session at the Capitol in Pierre. (Joshua Haiar/South Dakota Searchlight)

Some Republicans look to ‘take care of our house’ before cutting taxes

BY: - February 18, 2023

PIERRE — Gov. Kristi Noem announced in her budget address two months ago that 2023 was the “right time” to cut taxes and eliminate the sales tax on food in South Dakota. Several legislators echoed that sentiment, flooding the agenda shortly after the 2023 legislative session began with more tax cut bills. But some legislators […]

Derek Johnson, state economist with the governor’s Bureau of Finance and Management, and LRC Chief Fiscal Analyst Jeff Mehlhaff (left to right) present to the Revenue Projection Subcommittee Tuesday evening in Pierre. (Makenzie Huber, South Dakota Searchlight)

Legislative roundup: Flush with cash

BY: - February 17, 2023

This week in Pierre was a reminder that despite tense debates over cattle branding, elections, and vaccines, the business of state government – and the work of lawmakers – is tied tightly to the state budget. Competing revenue estimates landed at the Capitol on Tuesday during the day and into the evening, with our own […]

Rep. Erin Healy, D-Sioux Falls, testifies at the Capitol in Pierre in support of HB 1159, which would exempt feminine hygiene products from the state sales tax. The bill was sent to the 41st day by the House Committee on Appropriations, which means the bill is dead unless enough legislators decide to revive it. (Makenzie Huber, South Dakota Searchlight)

House committee kills three tax cut bills

BY: - February 15, 2023

PIERRE – The House Committee on Appropriations killed three of the tax cut bills introduced to the Legislature this session. The bills included one that would exempt feminine hygiene products, such as tampons, from the state sales tax; one that would exempt burial and cremation services from the state sales tax; and one that would […]