Gov. Kristi Noem's tax cut on groceries passes first hurdle

Measure would be the largest tax cut in state history

Jim Terwilliger, the commissioner of the Bureau of Finance and Management, defended Gov. Kristi Noem’s food tax cut proposal before the House Taxation Committee on Jan. 26, 2023. (Jonathan Ellis/The Dakota Scout)

PIERRE – The opening salvo in what is expected to be a protracted fight over taxes was made in a small, stuffy room overflowing with people and opinions on Thursday.

Gov. Kristi Noem’s legislative ambassadors, Rep. Mary Fitzgerald and Sen. John Wiik, introduced legislation to cut the state sales tax on groceries, a key campaign pledge the governor made to voters last fall. The measure would save taxpayers about $102 million a year.

“I am proud to introduce to you today the largest tax break in South Dakota history,” Fitzgerald told lawmakers on the House Taxation Committee, where the bill landed for its first hearing.

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