Tax & Accounting Blog

South Dakota Considering Tax Rate on Groceries

Indirect Tax, ONESOURCE, Sales and Use Tax February 15, 2012

South Dakota Representatives have proposed HB 1214, which should it become law, would reduce the 4% rate state residents pay on items at the grocery store down to 3.5%.  Cities across South Dakota have local rates on groceries ranging between 1% and 2% on top of the 4% state rate.  However, even if the bill were to pass both houses and get the governor’s approval, a condition is that the state would need to see a 6% bump in tax revenue the year before.  HB 1214 aims to reduce the rate on October 1st.

Source: http://www.keloland.com/News/NewsDetail6375.cfm?Id=127033