Prices may be going up, but here in South Dakota, grocery taxes are coming down. In 2022, Governor Kristi Noem signed a bill into law that lowered our state grocery taxes from 4.5% to 4.2%.

This year petitioners across the state hope to eliminate grocery taxes completely with an initiated measure.

Here’s the short version of the details:

1. Dakotans for Health submitted paperwork to the Secretary of State to add an amendment to the state constitution.
   • The proposed amendment reads: “The state may not tax the sale of anything sold for human consumption, except alcoholic beverages and prepared food. Municipalities may continue to impose such taxes.”
2. People are now collecting signatures to get this amendment on the ballot in November 2024.
   • 17,508 signatures are required for the amendment to be voted on in November.
   • The signatures are due first Tuesday in May, Tuesday May 7th this year. 
3. If the amendment is added to the ballot in November, a “Yes” vote will eliminate the 4.2% sales tax collected by the State of South Dakota on groceries.
4. If passed, the amendment allows cities to continue to tax groceries. It might be added to the ballot during city elections.

That might not sound like much, but taxes make a huge difference on the city budget level. In Brandon, grocery taxes amount to $500,000 in our city budget.

Take a look at what your grocery sales tax dollars help support right here in Brandon:

• Law Enforcement salaries, equipment and training
• City Maintenance needs like snowplows, public works equipment, and road repairs
• City Parks and Recreation needs like general park improvements, public restrooms in parks, and updated playground equipment
• City Facilities like the Brandon Golf Course, the City Pool, and equipment to record City Council meetings