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:
- Aberdeen Area Chamber of Commerce
- Aberdeen Development Corporation
- AFSCME Local 3968
- Associated General Contractors of South Dakota
- Associated School Boards of South Dakota
- Brandon Valley Area Chamber of Commerce
- Brookings Area Chamber of Commerce
- Brookings Economic Development Corporation
- Chamberlain-Oacoma Area Chamber of Commerce
- Cannabis Industry Association of South Dakota
- Coalition for Responsible Taxation
- CONPAC
- Dakota Credit Union Association
- DeSmet Development Corporation
- Destination Marketing Professionals of SD
- Elevate Rapid City
- Greater Sioux Falls Chamber of Commerce
- Huron Chamber of Commerce & Visitors Bureau
- Mitchell Area Chamber of Commerce
- Mitchell Area Development Corporation
- Mitchell Professional Firefighters Local 4166
- Pierre Economic Development Corporation
- Sioux Falls Development Foundation
- Sioux Falls Firefighters Local 814
- Sioux Metro Growth Alliance
- Sisseton Area Chamber of Commerce
- SD Agribusiness Association
- SD Association of Cooperatives
- SD Association of Conservation Districts
- SD Association of County Commissioners
- SD Bankers Association
- SD Biotech Association
- SD Cattlemen’s Association
- SD Chamber of Commerce & Industry
- SD Council of Community Behavioral Health
- SD Economic Development Professionals Association
- SD Education Association
- SD Farm Bureau
- SD Home Builders Association
- SD Hotel & Lodging Association
- SD Licensed Beverage Dealers & Gaming Association
- SD Municipal League
- SD Music & Vending Association
- SD Petroleum & Propane Marketers Association
- SD Pork Producers
- SD Retailers Association
- SD Soybean Association
- South Dakotans Against A State Income Tax
- Southeast SD Tourism Association
- Watertown Area Chamber of Commerce
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