South Dakota Senate Bill SJR510

South Dakota 2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/25/24
• Report Pass: 2/2/24
• Report Pass: 2/5/24

Caption

To refer to the voters the question of whether this state should lower the state sales and use tax rate on food to zero percent, and to increase certain gross receipts tax rates, excise tax rates, and use tax rates.

Impact

The bill also introduces increases in certain gross receipts tax rates and excise tax rates to offset the revenue loss resulting from the elimination of the sales tax on food. By shifting the tax structure in this manner, the resolution is set to create a more progressive taxation system that may alleviate some economic pressures on lower-income households while raising concerns about the impact on state revenues and public services that rely on tax contributions.

Summary

SJR510 is a Senate Joint Resolution from South Dakota that proposes to submit to the voters a significant change in the state tax structure. Specifically, it seeks to lower the sales and use tax rate on food to zero percent, a move intended to reduce the financial burden on residents when purchasing groceries. This initiative aligns with ongoing discussions nationwide regarding tax reforms focused on essential goods and living costs, aiming to enhance affordability for families in the state.

Contention

Notable points of contention surrounding SJR510 involve the potential financial implications for the state's budget, as critics express concern about the sustainability of funding for essential services if the projected revenue from excise taxes does not adequately compensate for the loss from food sales taxes. This worry suggests a divisive landscape where advocates for public welfare and supporters of tax reform must navigate the balance between supporting vulnerable populations and maintaining economic stability within the state.