Coalition Opposes Tax Elimination Measure, Citing Potential Cuts to Services | Local News

KXLG – Watertown, SD A growing coalition of organizations, including the Watertown Area Chamber of Commerce, is raising concerns about the potential consequences of Initiated Measure 28 (IM-28), which will appear on the November 5th ballot.

The number of groups opposing the measure has risen to 50.

IM-28 proposes eliminating state and local taxes on “anything sold for human consumption,” including a wide range of items beyond groceries. This includes tobacco, CBD products, mouthwash, vaping supplies, toothpaste, marijuana, beverages, and more. While it excludes alcohol and prepared food, opponents estimate it would create a significant budget hole.

The coalition, led by the South Dakota Retailers Association and South Dakotans Against A State Income Tax, warns that IM-28 could lead to a loss of up to $646 million annually in state revenue. Additionally, local government budgets could be hit hard, with an estimated loss of $51.5 million.

Nathan Sanderson, Executive Director of the South Dakota Retailers Association, expressed concerns about the impact on essential services. “Every South Dakotan will feel the negative impacts of IM-28,” he stated, “whether it is new tax increases or cuts to essential government programs like education, healthcare, or public safety.”

The coalition fears that significant revenue loss could force the state to implement new taxes, potentially including an income tax. They believe this would be a more significant burden on residents than the current system.

Membership includes chambers of commerce, economic development organizations, labor unions, professional associations, educational groups, and agricultural organizations.

According to Sanderson, this may be the largest coalition ever assembled to oppose a ballot measure in South Dakota history. They believe IM-28 will be detrimental to the state and its residents.

Citizens and organizations seeking more information about IM-28 and the coalition’s opposition can visit

www.nosdincometax.com.

Coalition members include:

1. Aberdeen Area Chamber of Commerce
2. Aberdeen Development Corporation
3. AFSCME Local 3968
4. Associated General Contractors of South Dakota
5. Associated School Boards of South Dakota
6. Brandon Valley Area Chamber of Commerce
7. Brookings Area Chamber of Commerce
8. Brookings Economic Development Corporation
9. Chamberlain-Oacoma Area Chamber of Commerce
10. Cannabis Industry Association of South Dakota
11. Coalition for Responsible Taxation
12. CONPAC
13. Dakota Credit Union Association
14. DeSmet Development Corporation
15. Destination Marketing Professionals of SD
16. Elevate Rapid City
17. Greater Sioux Falls Chamber of Commerce
18. Huron Chamber of Commerce & Visitors Bureau
19. Mitchell Area Chamber of Commerce
20. Mitchell Area Development Corporation
21. Mitchell Professional Firefighters Local 4166
22. Pierre Economic Development Corporation
23. Sioux Falls Development Foundation
24. Sioux Falls Firefighters Local 814
25. Sioux Metro Growth Alliance
26. Sisseton Area Chamber of Commerce
27. SD Agribusiness Association
28. SD Association of Cooperatives
29. SD Association of Conservation Districts
30. SD Association of County Commissioners
31. SD Bankers Association
32. SD Biotech Association
33. SD Cattlemen’s Association
34. SD Chamber of Commerce & Industry
35. SD Council of Community Behavioral Health
36. SD Economic Development Professionals Association
37. SD Education Association
38. SD Farm Bureau
39. SD Home Builders Association
40. SD Hotel & Lodging Association
41. SD Licensed Beverage Dealers & Gaming Association
42. SD Municipal League
43. SD Music & Vending Association
44. SD Petroleum & Propane Marketers Association
45. SD Pork Producers
46. SD Retailers Association
47. SD Soybean Association
48. South Dakotans Against A State Income Tax
49. Southeast SD Tourism Association
50. Watertown Area Chamber of Commerce