Give refund plan a chance by the Rapid City Journal Several new laws passed by the state Legislature became effective July 1, but the one many observers will be looking closely at is the governor�s food sales tax refund. Beginning July 1, eligible families are able to apply for a refund of sales taxes paid on food purchases each quarter. Gov. Mike Rounds proposed the tax refund plan in order to stave off an effort to repeal the sales tax on food for everyone, which he said would cost the state $60 million.
Meanwhile, on June 17 the Secretary of State�s Office confirmed that enough signatures had been gathered to put the food sales tax repeal on the Nov. 2 ballot. The state Democratic Party pushed for the repeal, arguing that taxing food is unfair and hurts poor families most of all.
We agree that sales taxes are regressive and that sales taxes on food in particular hit poor families more than wealthier families.
But Gov. Rounds� tax refund plan answers the most effective argument in favor of repealing the food tax by returning the taxes paid on food purchases to those most harmed by the tax � the poor.
Let�s give the governor�s tax refund plan a chance to work ?