FOR IMMEDIATE RELEASE

February 28, 2023

Contact: Ian Fury

Gov. Noem: “Temporary tax cut will hurt our families and businesses”

PIERRE, S.D. – Today, Governor Kristi Noem asked legislators to support a permanent tax cut. Governor Noem thanked the people of South Dakota for turning challenges into opportunities – and she advocated for the tax cut that the people of South Dakota overwhelmingly want: the grocery sales tax cut. You can watch Governor Noem’s video here.

“I want to help every single person who lives here in our great state. [The grocery sales tax cut] is the fairest tax cut for all people,” Governor Noem said in the video. “It doesn’t decide who gets a tax cut and who doesn’t – because everyone who lives here eats: the single mom trying to put food on the table, the senior citizens living on fixed incomes, the family where both parents have to work to make ends meet with rising record inflation nationwide. Overwhelmingly, the people of South Dakota want this tax eliminated.”

Eliminating the grocery sales tax is overwhelmingly supported by the people of South Dakota. A recent poll found that 58% of South Dakotans prefer this tax cut to other options. But last week, the House of Representatives opted to instead reduce the overall sales tax rate by 30 cents for every $100 spent.

“If the legislature pursues a temporary tax cut and instead embraces a spending spree, it will hurt our families and our businesses,” continued Governor Noem.

Yesterday, the Senate Tax Committee put a 2-year sunset on that tax cut because they know that the people will support repealing the sales tax on groceries in the near future. Legislators should be giving the people of South Dakota what they want now instead of thinking they know better how to spend someone else’s money.

“As we go into the last two week of legislative session, my hope is that policy makers remember they work for the people and will be accountable to the people,” continued Governor Noem. “They will present me a budget soon, and I will decide if it is worthy of my signature or not. I have proved in the past that I am willing to make hard decisions – and I will again, especially if it is something that respects our Constitution and the will of the people.”

South Dakota can afford eliminating the sales tax on groceries because of our permanent economic growth. Our businesses are growing and expanding quicker than ever before, incomes are going up faster here than in almost any state, we have the lowest unemployment rate in South Dakota history, and our population is growing at 5 times the national average.

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