South Dakota Senate revives food tax cut

The state Senate passes a bill to eliminate the sales tax on food by a single vote Monday.

HB 1094 had been an unrelated bill that was changed — or “hog housed” — and replaced with the repeal of the sales tax on groceries.

The vote was 18-17.

Supporters say removing the sales tax on food would save taxpayers about $104 million.

The Senate yesterday also passed a reduction in the overall sales tax from 4.5% to 4.3%. The House killed the food tax cut and passed a bill cutting the overall sales tax to 4.2%.

There is still much to finalize before the main run of the session ends Thursday.

March 7, 2023