There are many stresses that take a toll on disposable income...
"Then, when struggling families go to buy their food with what money
they do have for food, the sales tax displaces approximately 6% of their
food. No other tax so directly takes food off people's tables."
From "A Report to the Churches" from the Community Food Bank of South Dakota
In nearly every town in South Dakota,
the food tax is now equivalent to
more than three weeks worth of food out of a year.
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Did you know? One-half percent more tax on non-food would be enough to cover what the state would lose if it stopped taxing food AND the city revenue lost too AND tribal food tax revenue as well. It could end the whole food tax.
In the 2009 state legislature, Senate Bill 199 would have ended the onerous food tax - a bi-partisan, revenue-neutral proposal. The bill was voted down by the Senate at the tail end of "cross-over day", when we think most legislators had not really had a chance to learn about the proposal or discuss it. And clearly, ending the food tax was not a high enough priority for them.
Urge all legislators to learn about this fiscally-responsible, family-friendly proposal to end the food tax. This is sorely needed with prices so high on food and so many people experiencing tough times.
The legislature's cutting down the refund program was a cruel act at this time. It would not have been so bad if the legislature had used the money to reduce the food tax, rather than just to balance the budget. Cutting the food tax itself is what is needed. That would be the time to cut the ineffective refund program.
How does 2009's Senate Bill 199 work?
It totally removes sales tax, both state and city portions, from food normally used for a family's meals.
It keeps sales tax on non-food grocery items as well as on pop, candy, and prepared food (restaurant, deli, or take-out).
It shifts an additional 1/2% onto non-food purchases, making SB199 revenue neutral. This 1/2% provides enough or replacement revenue for the state, cities, and tribes, so they would not lose any money they now rely on from sales tax.
By leaving the current sales tax on pop & candy, it wisely provides a revenue cushion in the event that non-food sales slump with the economy.
Why now is a good time?
1. Food prices have never been so high.
2. Already, according to Kids Count Data Center (2007), 41% of South Dakota children live in low-income families.
3.The economy is declining, meaning increasing numbers are struggling with family grocery bills.
4. Most states do not tax food, and none of South Dakota's neighbor states do so.
2/4/09
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The poll tax was ended because no one should
have to pay a tax before they can vote. Now it is time to end the food tax. No one should have to pay a tax before they can eat. |
This section has more information on various financial topics related to the food tax. See the listing across the top and click on them.