Initiated Measure 28 brings up concerns on tobacco tax

RAPID CITY, S.D. (KEVN) - Ballot Measure IM 28 deals with a potential repeal of the state sales tax on anything for human consumption which could include tobacco.

South Dakota could become the only state to stop taxing tobacco products.

Opponents of IM 28 are concerned that by passing the measure the state will be forced to implement income taxes to make up for the cut to funding.

Nathan Sanderson, the executive director of the South Dakota Retailers Association, warns that we could see funding cuts across the board.

He says the way the measure is worded it could include more than groceries.

”Tobacco for example would be included in that, and we would be the only state in the country that would not have a tobacco tax so absolutely the language in IM 28 is not drafted properly,” Sanderson said.

The sponsor of the measure, Rick Weiland, said the vague wording of the bill came from the suggestion of the state and that there was no intention to repeal taxes on tobacco products.

”When we went through the process and submitted our language to the legislative research council, they review it and they make recommendations we initially went in and said eating and drinking, okay, they said that was too vague. that we should use words like ingestion or consumption. we thought that was a valid, constructive recommendation. So we took it. Now we’re being attacked for it but this came from our state government,” Weiland said.

If IM 28 is passed, the state legislature can adjust the law if they see fit.

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