South Dakota's sales tax on food purchases will gradually decrease over four years and then be eliminated entirely. Starting July 1, 2021, the tax rate on food drops from 4.5% to 4%, then steps down each year to 3%, 2%, and 1%, before reaching 0% on July 1, 2025. After that date, groceries and food items will no longer be subject to state sales tax.
Taxation Deferred to the 41st legislative day Passed, YEAS 7, NAYS 0. S.J. 1
Taxation Scheduled for hearing S.J. 1
First read in Senate and referred to Senate Taxation S.J. 115
Troy Heinert
Prime sponsor · Sen.
D
Cosponsors
Taxation — Deferred to the 41st legislative day