Calculate your food tax

In nearly every town in South Dakota,
your food tax equals the cost of your food for
3 weeks out of a year.

How many weeks worth of food for your family?
Multiply your total sales tax rate (state + city rates) by 52 weeks.
The result tells you how many weeks worth of food out of a year is equal to your food tax.

If you multiply this result by your weekly grocery spending, you can get a dollar figure.

Examples:
1. If you live in Salem, your total sales tax rate is .06 (.o4 state + .02 city)
Your family's food tax: .06 x 52 = 3.12 weeks. Your family's food tax is the equivalent of over three weeks worth of food per year.

2. If you live in Mission, your food tax is .0575 x 52 = 2.99 weeks, over weeks worth of food out of a year.
If your family buys $150 groceries a week, then your annual food tax is $448.
Don't know your city's sales tax rate?
You can find it at http://www.state.sd.us/drr2/businesstax/municipaltax/municipaltax.htm

Note:
Before 2004, South Dakota cities had a lower tax rate for groceries. No longer. Cities are now required to have the same sales tax rate on everything. This change resulted in South Dakotans paying an increase of millions each year in food tax.

Other state have not allowed their food tax to increase. Look on this website for info on the other states. In the section called "more info", see the options at the top of the page and click on "other states".

NOTE: Although current tax rules do not allow cities to tax food at a lower rate than non-food, the state could use a lower tax rate for groceries. This means South Dakota could phase out the state's portion of the food tax, or end it all at once. Unfortunately, South Dakota has not yet made this move.



updated 1/15/09