The proposed bill aims to exempt food that is grown, raised, or produced within South Dakota from state sales tax. A new section will be added to chapter 10-45, specifically stating that the gross receipts from the sale of such food will not be subject to the tax provisions of this chapter, as long as the food is prominently labeled to indicate its state of origin.

This legislative change is intended to support local agriculture by making locally produced food more affordable for consumers, thereby encouraging the purchase of South Dakota-grown products. The requirement for prominent labeling ensures that consumers are aware of the origin of the food they are purchasing.