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SD Governor Kristi Noem Proposes Sales Tax Cut on Groceries

SD Governor Kristi Noem Proposes Sales Tax Cut on Groceries

Governor Kristi Noem Photo: WNAX


As part of her reelection campaign, South Dakota Governor Kristi Noem is proposing to eliminate the state sales tax on groceries.

Noem says individuals and families are struggling and she blames the current economic conditions on The Biden Administration..

Noem, who may be interested in running for President in 2024, says cutting the sales tax on groceries is one way to help “protect our people from a disastrous White House.”..

If legislation eliminating the sales tax on groceries is passed by the state legislature, Noem says it would be “the largest tax cut in South Dakota history…

Noem says elimination of the grocery sales tax would reduce the tax burden on South Dakotans by $100 million. But, she didn’t lay out any plans for how the state may recoup the money or how many jobs and what services would have to be cut because of the reduction in sales tax revenue.

South Dakota’s budget surplus for the 2022 fiscal year was $115.5 million. Sales taxes grew by 12%. The state’s rainy-day fund grew to $422.6 million, 20.5% of the state’s budget.

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