The Brookings Area Chamber of Commerce Board of Directors believes it’s important to voice our collective concerns regarding Initiated Measure 28 (IM 28), the proposal to eliminate the state sales tax on “anything sold for human consumption.” While we wholeheartedly support reducing the financial burden on South Dakota families, the current draft of IM 28 leaves too much room for error and could result in unintended consequences.

Firstly, the vagueness of IM 28 is deeply troubling. The measure, as it stands, lacks clarity on several crucial points. Key issues, such as the definition of "consumable" and whether municipalities will retain the ability to tax, remain unresolved even with the election just three months away. For a policy with such far-reaching implications, the language must be precise and unambiguous. Unfortunately, IM 28 falls short in this regard, creating uncertainty for both consumers and businesses. 

Secondly, and even more concerning, is the potential loophole that could allow items beyond food, such as tobacco and other products, to be excluded from taxation. According to a recent study conducted by the Legislative Research Council, if IM 28 passes in its current form, our state budget is projected to face a $646 million loss, while, according to the South Dakota Municipal League, the City of Brookings would face a $1.6M loss. To put this figure into perspective, the state’s budget for education in 2025 is $715 million. We believe IM 28 could lead to significant cuts in essential services like education and healthcare. The language of IM 28 is not explicit enough to ensure that certain goods, including tobacco, remain appropriately taxed. 

We want to be clear: we are not opposed to the idea of reducing taxes. However, IM 28, as currently written, is not the right approach. Before we rush into adopting this measure, it’s crucial that the language is refined to close these gaps and ensure that the policy is implemented effectively and fairly. 

Our community and state deserve a well-thought-out plan that truly benefits everyone. Let’s work towards a better solution—one that is clear, targeted, and doesn’t risk the financial stability of South Dakota. 

Join us in defeating Initiated Measure 28 – vote “No,” on IM 28 on Election Day (November 5, 2024). 

Sincerely, 

The Brookings Area Chamber of Commerce Board of Directors