Ending the Food Tax in the Cities

It is not only the state. South Dakota cities tax food too, up to 2%.

Can the food tax be ended without hurting city revenues?

YES. The state could cover the city food tax revenue.
The state could end both state and city food tax at the same time, and food would finally be exempted totally from sales tax in South Dakota.

An additional approximate1/2% on non-food sales would raise enough to cover state revenue and also that of the cities and tribes. Re-imbursing local governments was the approach taken by Wyoming. .

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Bonuses for cities:

1. Positive effects of not taxing food. Healthier, more productive people. Better learning in schools.

2. More local shopping. Near the state borders, fewer people will go across the border to shop in neighboring states where food is not taxed.

3. Cities will no longer have to contribute millions of city revenue assessed by the state for the ineffective refund program.