South Dakota governor’s grocery tax repeal hits GOP pushback

PIERRE, S.D. (AP) — South Dakota lawmakers are considering a number of tax cuts this year.

Gov. Kristi Noem has promised to repeal the grocery tax as part of her reelection campaign. But many of the governor’s fellow Republicans have been resistant to that idea.

Republican lawmakers are proposing alternative tax cuts, such as scaling back the sales and property taxes.

House Speaker Hugh Bartels said that when he has discussed the grocery tax repeal with the governor’s staff, his message has been that constituents are not calling for it. “I’m waiting until the budgeting process is done,” he said, adding “You’ve got to weigh the option of unfunded programs and tax cuts.”

Some lawmakers fear too many tax cuts could leave the state under-funded. A recent report from the state’s legislative research office shows that South Dakota’s revenue growth has been driven by inflation and federal stimulus funds rather than organic economic growth.


January 19, 2023