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HB 1075: Repeal Food Tax!

We have the Governor’s food-tax repeal proposal.

Governor Kristi Noem has given her new party leaders Representative Mary Fitzgerald and Senator John Wiik the pleasure of prime-sponsoring House Bill 1075, the Republicans’ adoption of the long-standing Democratic proposal to repeal South Dakota’s unusual tax on groceries. The Republicans have gracioulsy allowed one Democratic legislator to sign on as a co-sponsor, Senator Reynold Nesiba, who has long advocated exactly this sensible and moral policy reform.

HB 1075 would set the sales tax on food and food ingredients to 0%. It adds cigarettes, cannabis, and cannabis products to alcoholic beverages, tobacco products, and prepared foods as items not included in the definition of “food” and “food ingredients” for tax purposes.

Interestingly, HB 1075 carries no emergency clause. While things like new firefighter maintenance shops in Rapid City and Hot Springs and a political propaganda center at Black Hills State are considered urgent projects that cannot wait, cutting your grocery bill by a few percentage points and fulfilling the Governor’s core campaign promise can wait until July 1.

HB 1075 has not yet been assigned its first hearing date.

29 Comments

  1. Nick Nemec

    Not including an emergency clause is actually a good strategy if you want the measure to pass. An emergency clause increases the number to votes to pass from 1/2 of the members elect to 2/3 of the members elect. If this tax change is going to be a battle for every vote it makes no sense to place higher hurdles in the path to a fairer tax system. The citizens have already waited years for this tax reform, waiting another three or four months is not onerous.

  2. grudznick

    Mr. Nemec is wiser in the ways of the legislatures than some. Mr. H secretly wants the law bill to fail so the money can be used for frivolous salary increases.

  3. Nix

    We have the Governors food tax repeal
    proposal.
    That is not hers.
    It was stolen from Democrats.
    And it wasn’t a core campaign promise of hers , again stolen ideas formerly apposed are not yours.
    Stolen, just like the land she lives on.
    At least it gives Larry something to do.
    Photo ops at Hy-Vee.

  4. Nix

    Opposed.

  5. Richard Schriever

    Define “prepared” food. Are rotisserie chickens prepared? How about after they’ve gone unsold and are turned into chicken salad? A custom birthday cake, is that prepared – ready-to-eat food? The hungry want to know.

  6. John

    It begs an amendment to bar counties and municipalities from applying sales tax to food.

  7. WillyNilly

    About prepared food… I know that the elderly often rely on prepared foods. For an elderly person, a rotisserie chicken from the store can make many meals. Same as a Chinese meal. It can be had at a reasonable price for the elderly light eater. An elderly person may no longer be able to make cookies or a pie so a package of prepared pastry can be a real treat. It may not be what Mama made or Honey made, but it satisfies. The food may be a convenience food for some but for others it’s not all about convenience, it’s about health and well-being. When a spouse dies after a long marriage it is difficult for the survivor to learn to cook for one, or to cook at all. Prepared foods are still food though it may be made in an offsite location.

  8. Vi Kingman

    Grudz. What pay increases?

  9. Bob Newland

    There you go again, Vi, addressing grudznutz as if it were something worth paying attention to.

  10. e platypus onion

    How many “prepared food” items are purchasable with SNAP cards? Out of curiosity.

  11. All Mammal

    Mr. Schriever- I have peers who know the ins and outs of the EBT system, which may also apply to the food tax guidelines. According to the state’s current practices:
    Rotisserie chicken is considered prepared if it is bought heated. Papa Murphy’s Take N’ Bake pizza is not prepared. Entire cakes are not prepared only IF the cake is NOT pre-sliced. (Cutting the cake at home is considered preparing) Convenience store fountain pop is not prepared IF you do not insert the straw before purchase. I believe you can buy all the Oreos, chewing gum and Mt. Dew since you open the plastic package at home?

    Willy Nilly- I feel you. It is just as difficult to go from cooking for a large family all your life to eating alone. Not wanting to let any good chuck go to waste, cooking for self goes out the window and ready-made swill is the norm. Can’t go wrong with a bowl of graham crackers and milk…. the main adjustment is simply eating solo dolo. I have considered drawing a face on the wall before …

  12. P. Aitch

    I have considered drawing a face on the wall before … – You’re en fuego today, All Mammal

  13. Richard Schriever

    So, if the rotisserie chicken is warm, although in an enclosed package that needs to be opened at home, it is “prepared”. But if it doesn’t sell warm (a dozen or more every couple of hours are so fated at a Costco) and allowed to cool, then removed from the initial packaging, stripped from the bone, mixed with some mayo and relishes and placed in a different container and wrapped, then chilled in a cooler – it is NOT “prepared”? Because the packaging needs to be opened at home? Wow.

  14. ABC

    I bought Muscle Milk and it was taxed in a small town there, at a C store.

    I bought one in Minneapolis , it was not taxed,
    .
    July 1st , get all the money you save (6.5%) and put in savings account and THEN,
    Start your revolutionary good business for all people!

  15. Arlo Blundt

    One reason the bill is dead on arrival is the endless, circular, prepared food argument. Another is John’s point about municipal sales taxes, which are essential to the operation of many smaller communities with limited taxable property income. The immediate 0% proposal is probably “a bridge too far”without a three year phase in period. The Party seems committed to put forward the Governor’s campaign promise, but, they will probably now stampede to get away from it. My bet is it dies of neglect.

  16. scott

    IMO this proposal is something designed to make Noem look good in the national media as she pursues a national political career. SD did not just turn itself around and all of a sudden becoming awash in cash. SD budget looks good today because of the major influx of federal aid and Covid monies. We have many issues in SD to deal with like the aging prison systems, lack of teachers and healthcare workers, lack of decent housing, lack of workers and on and on. If the food tax is repealed, how are we going to fund fixes for these kinds of issues to keep SD sustainable? Burring our heads in the sand and saying everything will be OK may work for 2 to 3 years, but when Noem leaves office, we will have hell to pay, and a major tax increase will be needed. It would be great not to tax food, but in the end SD government needs money to provide the services that are needed. I know it is fun to pick on government, but without government where would we be? Transportation, public safety, recreation, education, courts, water systems, sanitary systems, etc. are all examples of programs we all want and need.

  17. Scott, she’ll have to get it passed first, and I’m not hearing her own party get in line to cheer for straight-up repeal.

  18. Matthew k

    Scott you forgot the 12 million dollar gun range that all of SD wants and needs

  19. All Mammal

    No- The chicken stays in original package. Once it is removed from the heat lamps or warmers and refrigerated, it switches to eligible. At least that’s what mattered when I did the billing for the Child and Adult Care Food Program. Although, the CACFP is federal and EBT is state, they may be similar. To qualify for EBT and be sold as a salad, the chicken package’s FDA Daily Nutritional Value label must name the list of ingredients at the time of packaging. If you turn the chicken into salad, the container needs to say mayo, mustard etc…..As long as the rotisserie chicken isn’t kept warm and has accurate food labels- Its Good

  20. JO

    Since medicinal marijuana is taxed why not legalize recreational marijuana. That will more than make up the funds if food is not taxed. Just as was mentioned, the Minnesota mind set that is not totally under control of the GOP. Actual intelligent voters and State government representatives and senators live in Minnesota and pay their teachers a decent salary. Grudz seems as though you’re proud of competition with Mississippi as paying teachers not enough to live on.

  21. Richard Schriever

    So, leftovers are not “prepared”. Got it.

  22. All Mammal

    Sure. Or look up your question for a more accurate answer.

    I wonder why implementing a church tax never gets brought. Poom! Tax food for what?! Poom! Poom! Skiddy ka ka ka!

  23. DS

    PENNINGTON COUNTY PROPERTY TAX HIDDEN INCREASES

    LEAVE IT TO PENNINGTON COUNTY EQULIZATION TO DREAM UP NEW WAYS TO INCREASE OUR PROPERTY TAX. LAST YEAR THEY INCREASED EVALUATIONS BY SOME 20% BECAUSE A BUNCH OF NOEM ANTI-MASK CASH RICH OUT-OF-STATERS DROVE UP MARKET VALUE. OF COURSE WHEN WE ATTEMPT TO APPEAL THE INCREASE, THEY CLAIM THAT WOULD NOT NECESSARILY INCREASE THE FINAL TAX BILL. BUT TRUTH BE TOLD NOW THAT WE GET OUR ‘TAXES DUE’ STATEMEVT. INCLUDED IN OUR INCREASES IS A NEW RULE THAT DIS-ALLOWS THE OWNER OCCUPIED TAX DISCOUNT ON YOUR DETACHED GARAGE, YOUR HOBBY SHOP, YOUR STORAGE SHEDS AND ANY OTHER OUTBUILDINGS.WORD IS NEXT YEAR THEY PLAN ON DOING THE SAME WITH YOUR LAND VALUE BY RULING THAAT ONLY THE DIRT UNDER YOUR HOUSE IS ELIGBLE FOR THE OWNER OCCUPIED CLASSIFICATION.
    TO ADD ISULT TO INJORY, RAPID VALLEY WATER AND SEWER TOOK IT UPON IT’S TAXING AUTHORITY TO ANNEX US INTO THEIR DISTRICT EVEN THOUGH WE HAVE RAPID CITY WATER SERVICE AN COMPLY WITH PENNINGTON COUNTY PUMP AND INSPECT SEPTIC REQUIREMENTS. TURNS OUT THE PROPOSED FOOD SALES TAX REPEAL IS ALLREADY MORE THAN REPLACED BY THESE PROPERTY TAX INCREASES.

  24. e platypus onion

    What yer magat nayboors to the east and south of you are doing for SNAP recipients…,

    The Des Moines Area Religious Council (DMARC), an interfaith group that operates the largest food pantry network in Iowa, noted in a statement earlier this week that if the bill passes, “Iowans could no longer use their SNAP benefits to purchase meat, nuts, and seeds; flour, butter, cooking oil, soup, canned fruits, and vegetables; frozen prepared foods, snack foods, herbs, spices—not even salt or pepper.”

    “This is a punitive policy that will do nothing to improve the health and nutrition of Iowans, but rather be a detriment,” the group said.

    Plenty oif cafo waste for them to eat, though. These magats aren’;t kristian and they aren’t even human. Neither are the magats that throttle Duhkota. Send them to HELL!

  25. All Mammal

    Philanthropists and volunteers are what keeps the whole thing together. It is sad the state puts more and more pressure on that kindness. What e platypus onion said about the stipulation put on Iowa’s food tax is vile. Sonsabeaches will whet their insatiable greed with growing people’s hunger? To hell with them!

  26. bearcreekbat

    When I read about the fears that repealing the sales tax on food might result in some other replacement taxes, such as an increase in property tax on outbuildings, detached garages, hobby shops, storage sheds, etc, or possibily even a progressive income tax, it sort of reminds me of this tune by Weird Al Yankovic:

    https://www.youtube.com/watch?v=bwvlbJ0h35A

  27. e platypus onion

    https://www.rawstory.com/food-stamps/ Not trying to hijack this thread, but, there are a few things you need to look out for. ALEC is not the only magat bill mill out there.

    “Only two groups support the bill,” Dorman added. “One is the Florida-based Opportunity Solutions Project, which sends its minions across the country to cut holes in the social safety net and oppose policies such as Medicaid expansion. The group is part of a web of conservative think tanks and bill mills bankrolled by rich donors who think if you just make poor people hungry and sick enough, they’ll utilize their bootstraps.”

    The other group is the right-wing Iowans for Tax Relief

    This S###STORM is likely headed your way.

  28. e platypus onion

    The group is part of a web of conservative think tanks and bill mills bankrolled by rich donors who think if you just make poor people hungry and sick enough, they’ll utilize their bootstraps.”

    Grudzilla, are you a wholly owned subsidiary of the this group of wealthy magats? Boostraps? Sounds like the garbage you spew regularly about poor people.

  29. e platypus onion

    It turns out iowa sinator Grassley’s grandson, just sworn in for his 8th term in the iowa house of repugnants leading the charge to take entitlements away from the poor. However, in the past 2 decades, members of Grassley’s entitled family including both politicians have collected around 1.7 million in entitled farm subsidies. Sounds like Noem’s entitled to the entitlements family.

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