This explainer presents both sides based on the measure's text. It does not recommend a vote.
Plain English Summary
Amendment F would eliminate the state sales tax that South Dakota currently charges on food purchases. This would make groceries and other food items less expensive for consumers by removing the state portion of sales tax when people buy food.
If YES
Food purchases would become less expensive for all consumers as the state sales tax on food would be eliminated
confidence: high
Lower-income families would see greater relief since they spend a higher percentage of their income on food
confidence: high
State tax revenue would decrease, potentially affecting funding for government services and programs
confidence: high
South Dakota would join other states that do not tax food purchases
confidence: medium
If NO
The current state sales tax on food purchases would remain in place
confidence: high
State tax revenue from food sales would continue to fund government services and programs
confidence: high
Food costs would remain at current levels with existing tax structure
confidence: high
The state would maintain its current tax policy approach regarding essential goods
confidence: medium
Financial impact
The state would lose sales tax revenue from food purchases, requiring alternative funding sources for current programs or potential reduction in government services. Consumers would save money on food purchases.
TL;DR
Amendment F would eliminate South Dakota's state sales tax on food, making groceries cheaper but reducing state revenue.
Limitations
Based on measure title only — full text analysis may reveal additional details
Arguments For and Against
Arguments For
Supporters argue that taxing groceries is regressive and disproportionately harms low-income families who spend a larger share of income on food.— Yes on F campaign
Arguments Against
Opponents argue that repealing the food sales tax would reduce state revenue by over $100 million annually, potentially forcing cuts to education and other services.— South Dakota Municipal League