In South Dakota, an initiative to prohibit sales and use taxes on groceries was certified for the Nov. 5, 2024, ballot.
On May 13, the secretary of state’s office verified that the campaign behind the initiative, TakeItBack, submitted enough valid signatures to qualify for the ballot. On April 24, the campaign submitted about 25,000 signatures, needing 17,509 valid signatures to qualify for the ballot. The secretary of state’s office said they validated more than 85% of the submitted signatures. The measure will be referred to as Initiated Measure 28.
The measure would prohibit state sales taxes on anything sold for human consumption but specifies that it would not prohibit taxes on alcoholic beverages or prepared food, which is defined as food that is sold heated or with utensils. It would also not prohibit municipalities from establishing additional taxes on groceries.
Currently, South Dakota and Mississippi are the only two states that apply the full state sales tax rate to groceries. South Dakota has a 4.2% sales and use tax on groceries and allows cities to establish an additional 2% sales tax. Previously, the state sales tax was 4.5%, but the state legislature reduced it from 4.5% to 4.2% for four years in 2023.
Rick Weiland, co-founder of TakeItBack, said that the measure would address food insecurity in the state. “Removing the state’s sales tax on groceries is a crucial step towards addressing food insecurity and promoting economic fairness in our state,” he said.
The measure was endorsed by the South Dakota State Federation of Labor AFL-CIO. The organization’s president, B.J. Motley, spoke in support of the measure: “Our low-income working families are struggling, with some spending up to 30% of their household income to feed their families. This inequality is unacceptable, and we stand ready to partner with TakeItBack to address this pressing issue.”
Opponents of the initiative include Senate President Pro Tempore Lee Schoenbeck (R). Sioux Falls Mayor Paul TenHaken (R) also spoke in opposition to the measure, saying, “If this ballot measure is approved in the upcoming fall election, our community would see a substantial reduction in sales tax revenue. That would profoundly impact the services we can deliver to the public.”
Three other campaigns in South Dakota recently submitted signatures for initiatives to qualify for the 2024 ballot. These initiatives relate to recreational marijuana legalization, establishing top-two open primary elections, and establishing a state constitutional right to abortion.
There are currently two other measures currently on the Nov. 5, 2024, South Dakota ballot. The current measures certified for the ballot are:
- A constitutional amendment that would change male pronouns in the constitution to gender-neutral terms or titles.
- A constitutional amendment that would provide that the state may impose work requirements on eligible individuals to receive Medicaid benefits.