RAPID CITY, S.D. (KOTA) – With the November election looming closer, one item on the ballot has some people in Sturgis and South Dakota in general concerned.

An analysis conducted by the South Dakota Municipal League estimates cities and towns including Sturgis would lose at least more than $51 million in sales tax revenue annually if the grocery tax repeal passes.

The repeal or Initiated Measure-28 would remove a 4.2% state sales tax on human consumption sales, except for alcoholic beverages or prepared food.

A spokesperson for the City of Sturgis says the city council voted to oppose IM 28 5-2.

If the measure passes, she says the city would lose more than $700,000 in sales tax revenue.

”With us facing some budget challenges that would really just add to, you know, the top of that with more challenges with losing that kind of sales tax money,” said the Director of Communications for the City of Sturgis Deb Holland.

The official sponsor for IM-28 says the bill would be beneficial for South Dakotans if it passes in November.

”It’s going to take the tax off of food, the state’s tax off of food and save the taxpayers $123.9 million,” said the Co-Founder of Dakotans for Health, Rick Weiland.

He adds the proposed language in the bill says towns and cities could still collect taxes on food.

In addition, he says the passing of the bill would not impact a local government’s ability to collect sales taxes on food.

See a spelling or grammatical error in our story? Please click here to report it.

Do you have a photo or video of a breaking news story? Send it to us here with a brief description.

Copyright 2024 KOTA. All rights reserved.