I never believed Noem truly wanted this tax cut and was probably secretly giddy it failed. I would be shocked if ANY tax cut is approved this legislative session. Playing the Devil’s advocate, why would those who control the coffers want to eliminate a reliable revenue source?
If I were a legislator the prudent thing to do would have been a step reduction in the food tax (eliminating 1.5% this year and 1 penny the following three years and on the 5th year eliminate the municipal food tax portion).
I personally support the property tax cut. While they contend it will only save taxpayers around $300 a year it is around a $800 savings each year in Sioux Falls (that is the approximate take of the SFSD for a $100K valuation). The food tax cut would only save me about $150 a year. As for helping the poor with a food tax cut that is a false flag (an overall sales tax reduction would have a bigger impact). Since most legitimately poor in our state receive food from food banks, FREE school lunches, WIC, churches and SNAP they pay NO taxes on food so why not give them real savings by reducing the overall sales taxes on anything purchased (especially on cigs and beer their biggest staples š I also think there should have been legislation to eliminate sales taxes on gas and electricity (something renters and homeowners both pay). As I said from the beginning, I donāt think our legislature has the courage to cut taxes. As my stepdad used to say, āGutless Wondersā.
Given real estate appreciation, itās not really a property tax cut. Thereās tax on food because thereās no state income tax. Minnesota has no tax on food. Itās not that far to Worthington. Try a quarterly trip there for non-perishable food. Also, no tax in MN on clothing. Try a spring and fall trip to Mall of America. Itās a good get away with gas paid for from tax savings.
Minnesota. Thereās democrats there.
SD’s keeps it’s ITEP “terrible 10” status–with the 4th most regressive state and local tax system in the US.
With no income tax, SD is reverse Robin Hood state, where the bottom 20% pay 11.2% of their income
in state and local taxes–while the top 1% pays only 2.5%.
https://itep.org/whopays/south-dakota/
https://itep.org/whopays/
Personally, I think it failed because Noem is fundamentally a weak leader. She’s an above average politician, but a weak leader. I also think she, as the first woman governor, has had to deal with some definite misogyny in Pierre which leads to many of her ideas failing.
There is also a point often made, that as long as earned income tax credits exist, that the food tax is a none issue. But I say as long as the rich can have TIFs, then why can’t the middle class on down have some additional tax breaks, too? #TrickleDownPierre
AND, while we are talking about Noem. Wasn’t it Noem who claimed, just two years, that the two new Democratic Senators from Georgia were “communists”? AND, wasn’t it Tulsi Gabbard, a “Democrat”, who campaigned for Noem last fall? But now, just this past Monday, Gabbard was spotted speaking at a pro-Russia rally in DC, where people in the crowd had old Soviet flags waving…. So what gives here Governor Noem? #Hammer&SicklePierre
( and Woodstock adds: “This is the last time I’m going to say this, but we should have ran Dua against her”…. “But oh no, no no no, the Democratic establishment around here was determined to instead run a James Corden tribute candidate, go figure”…. š )
Failing to pass the tax cut on food shows just how out of touch our legislature is.
I just went to Hy-Vee and bought $50 dollars of food, and did not pay more than $3.50 in sales tax on my purchase. I do not understand the argument how a sales tax restricts anyone from buying food.
You can go to Worthington, MN to buy food all day long, however, if your nieghbors or the state find out about it, you will get a tax bill cause it is “YOU” who owe the tax when the food or any such property is delivered to your Residential Address, the tax is due upon delivery, not the purchase.
That means you must report the transaction by the 20th of the Month, while remitting payment by the 30th of each month.
IF you qualify for a “tax exemption” from the tax, you are able to request to obtain the tax exemption.
IF your income falls below 150% of the Poverty Line, then you qualify to obtain a “Tax Credit or Refund”.
The South Dakota Sales Tax and Property Tax is progressively managed to allow for people who qualify, to obtain a Tax Refund or Credit towards their next Return.
The Tax is paid by ALL CITIZENS, while those who qualify can apply for, request a Credit or Refund upon filing their “return”.
By going outside the State to buy food, clothing, any such property or service does NOT escape you from owing the tax, this was the purpose of the Use Tax – catch all those Citizens who claim a residency in S.D, who avoid paying sales tax at S.D Retailers, to report such transactions each month.
All goods and services you buy this month, you have until the 20th of Next Month to File a Return, and you got until the 30th of Next Month to remit payment. And if you qualify for a “Tax Credit” due to paying to much tax in a Foreign State, you are allowed to take a Credit’ in S.D; if you qualify for a Refund cause your income falls below a specific threshold, you are allowed to take a “Refund”.
The South Dakota Sales Tax is Progressive in Nature.
The use tax is the personal property tax of our time. They used to call the ppt the “liar’s tax”.
I can understand why we make a millionaire apply for a TIF, but why bother the average Joe with a sales tax rebate form? Let’s keep it simple by getting rid of the tax on food.
I’m sorry, but I can’t resist: Maybe Santos should be made to pay a liar’s tax…..
In the comments above, MLZ might have been referring to some other state that has a “Tax Credit or Refund” for people below 150% of the poverty line. Not here.
South Dakota’s “Sales Tax and Property Tax Refund Program” is an extremely small program for a little help only to senior citizens and people with disabilities. Its upper income limit is being raised this year to 110% of poverty line. Statewide, only 1022 individuals received this benefit last year .