South DaCola

HB 1255 Passes Committee (ending the food tax)

UPDATE: More Games

After such a nice victory in Taxation Committee this morning, a move led by Rep.Faehn in the House this afternoon has now sent HB1255 to Appropriations Committee on Monday morning for its next vote, rather than the full House. So here we go. Your contacts were  wonderful to the last committee. Let’s convince this one too! The people need this tax shift.

If you need any further inspiration, read this from Matt Gassen, Director of Community Food Banks of SD (which distributes food to over 500 agencies in SD)
“No other tax so directly takes food off the family table as the current 4% state tax on food items. To shift the tax off food as proposed in HB 1255 could be one of the single most significant pieces of legislation to impact the hungry of South Dakota in a long time. With the continuing increase in the numbers of individuals (78,000 statewide) seeking emergency food assistance a recent study shows that 32% choose between buying groceries and paying for utilities or heating fuel, 29% choose between food and rent/mortgages and 32% choose between food and gas for their cars. The passage of this bill would make the family budget go farther and increase the amount of food that their grocery dollars would buy. It could also help to ease the strain on emergency feeding programs who are struggling to find enough food to help all those in need.”

Next to house floor – needs 2/3 vote

HB1255 is a revenue-neutral tax shift. The state comes out even with the shift from the 4% state portion of food tax to  3/10% on non-food sales. It is revenue-neutral for the state, but middle- and lower-income people will be better able to afford their basic needs. Better than refund programs. The benefit comes right at the grocery store, to reduce hunger, and improve health and family financial stability.

What about the argument that taxing food provides the state a “stable source of revenue”? This is a line of reasoning from a time when the economy was better, and the worry was  that when times get tough, at least there would be revenue coming from grocery purchases. Well, times are tough. This is the down time. Making a revenue-neutral tax shift when the economy is down would take the worry out of taking tax off food. This is the time to make the shift. The issue will continue until the tax comes off food, so legislators would be wise to do it now. (Does this make sense? There should be a more concise way to explain it.)

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