Rapid City passes resolution opposing Grocery Tax Repeal

RAPID CITY, S.D. (KOTA) - With the November election approaching fast, Rapid City council members want to ensure the Grocery Tax Repeal measure doesn't become a reality in the city and all of South Dakota.

The city held a Legal and Finance Committee meeting Wednesday, with committee members passing a resolution which opposes Initiated Measure 28, or the Grocery Tax repeal.

If the measure passed, It would remove a 4.2% state sales tax on anything for human consumption, except for alcoholic beverages or prepared food.

The City Attorney, Joel Landeen, feels the wording "human consumption" in the legislation is not clearly defined.

In addition, if the measure passed, it could lead to Rapid City approximately losing more than six million dollars in revenue.

"We'd have to look at cutting services, projects, delaying projects. Also, probably look at staff cuts, would be something that would [be] needed to make up the deficit," Landeen said.

Landeen added it would be problematic if the city's two percent grocery sales tax were repealed, as sales tax is one of Rapid City's largest revenue sources.