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 imposed by this chapter, as long as the food is prominently labeled to indicate its origin from the state.

This legislative change is intended to support local agriculture and encourage consumers to purchase locally produced food by making it more financially accessible. The requirement for prominent labeling ensures that consumers are aware of the source of their food, promoting transparency and supporting local farmers.