Nathan Sanderson, executive director of the South Dakota Retailers Association, speaks at a press conference July 9, 2024, in Sioux Falls. Sanderson is the treasurer of a committee opposing Initiated Measure 28. (Joshua Haiar/South Dakota Searchlight)
Twenty-five South Dakota companies and organizations have contributed money to defeat a tax-repeal measure on the Nov. 5 ballot, while the supporting group’s fundraising is difficult to analyze because of the group’s dual focus on the tax measure and an abortion-rights amendment.
Initiated Measure 28 would remove the 4.2% state sales tax on anything sold for “human consumption,” excluding alcohol and prepared food. Supporters intend the measure to repeal state sales taxes on groceries. Opponents say the measure is poorly written and would apply to a broader array of goods and services.
The opponent committee, South Dakotans Against a State Income Tax , raised over $200,000 since its formation in June and spent about $90,000, according to new campaign finance reports. The committee’s name comes from the claim by some Initiated Measure 28 opponents that sales tax revenue losses from the measure could eventually lead to an income tax.