Education, business leaders join 'Vote No on 1' campaign School Administrators of South Dakota and the South Dakota Chapter of the National Federation of Independent Business joined the Taxpayers for Common Sense coalition, the effort to defeat Initiative No. 1.
Initiative No. 1 would remove food from the sales tax base of South Dakota reducing revenue to the state by $40 million and taking nearly $20 million from local governments.
"It is obvious that other taxes will have to be increased if you take 8 percent of the sales taxes from the state budget," said NFIB spokesperson Bob Riter. "Our members and businesses across the state pay taxes on supplies, professional services and material used to produce things. A tax increase of 10 to 15 percent in local sales taxes, or an increase in property taxes will put pressure on small businesses that are just now recovering from the challenges of the past two years."
Adding the voice of education administrators was Christie Johnson, Executive Director of School Administrators of South Dakota.
"Schools understand the need to help low-income families, which is why so many schools offer breakfast and all of them offer lunch available free to these families," she said.
She also expressed concern about education funding, saying, "schools struggle for any dollars we can get and were very appreciative of the Governor's recent budgets that had money for schools above inflation. Initiative No. 1 will take twice that amount away from the state � this is a real threat."
These groups join nearly 40 other business, government and education associations plus 27 city councils that have passed resolutions opposing Initiative No. 1.