As a part of the November 2024 election in South Dakota, a citizen-initiated ballot measure (Measure 28) will ask voters whether to eliminate the state’s 4.2% sales and use tax on most food items. The proposed change would still allow sales tax on alcoholic beverages and prepared food. It would also allow local governments to continue to charge tax on food. If passed, the change would be effective July 2025. This would be a radical shift for South Dakota which is notorious in the world of sales tax for having an exceptionally broad tax base.
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