The bill proposes to exempt from state sales tax any food that is grown, raised, or otherwise produced within South Dakota. 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, as long as the food is prominently labeled to indicate its origin from the state.

This legislative change aims 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 source of their food, promoting transparency and supporting local farmers.