Initiated Measure 28 has failed at the ballot box. It would have removed the state’s tax on grocery items, and potentially other purchasable consumables.
The proposal failed on a wide margin, with many attributing concerns to the wording of the measure in front of voters.
Nathan Sanderson is the executive director of the state Retailors Association, one of the most prominent voices opposing IM 28.
“This is a great outcome obviously," Sanderson said. "We believed from the beginning that IM 28 was poorly drafted and would have negative consequences for South Dakota. I think the results from the election are showing South Dakota citizens agreed with that. I definitely think that was a product of people digging into what the measure actually does. The measure did not use the language that would have done what the sponsors had proposed to do.”
In the text of the measure, the plan would have banned taxing items sold for quote “human consumption.” Opponents said this would extend the tax ban well beyond grocery items, including items like tobacco.
Sanderson estimated the bill would have come at a net cost of over $100 million to the state.
At the end of the night, he attributes the campaigns success to the dozens of groups and municipalities cooperating to battle the bill.
“We had just a tremendous coalition from across the state, 68 different organizations were opposed, around 80 cities or towns passed resolution of opposition," Sanderson said. "We had a lot of really good grassroots support. The polling we saw early indicated two-thirds of South Dakotans would vote for such a measure, but I have said multiple times that I thought the poll asked the wrong question.”
Sanderson says he doesn’t believe the conversation surrounding the grocery tax is over but says there could instead be efforts to lower the rate in the near future.
Gov. Kristi Noem praised the defeat of IM 28 on social media – saying South Dakotans quote “made a wise decision to defend fiscal responsibility.”
Organizers of the group backing the measure have not responded to request for comment.