The bill proposes to exempt from state sales tax the gross receipts from the sale of any food that is grown, raised, or otherwise produced in South Dakota. This exemption is contingent upon the food being prominently labeled to indicate its origin within the state.

To implement this change, a new section will be added to chapter 10-45 of the state law, specifically stating that these sales are exempt from the computation of the tax imposed by the chapter. This legislative action aims to support local agriculture and encourage the consumption of locally produced food.