Economic Assistance

Sales Tax on Food Refund Program

Frequently Asked Questions

How much will I receive?

A national food plan is used to determine the monthly cost of food a family needs to purchase for a healthy, nutritious diet. Amounts vary based on household size. Benefits are paid quarterly, which means you will receive three months of benefits in one payment.

The sales tax amount on any food stamp benefit you have received in the three months prior to the application month is deducted from the monthly amount before the sales tax refund payment is calculated.

How will I receive my refund?

You will receive your sales tax on food refund benefits in an electronic account. After your benefits have been approved, a plastic debit card, called the South Dakota EBT card, will be sent to you along with instructions on using it. The card may be used in most grocery stores anywhere in South Dakota and in most other states.

How can I use my benefits?

You can use your benefits to buy almost any food item. You cannot buy hot foods such as deli items or food that will be eaten in the store, alcohol which includes beer or wine, pet food, soap, paper products, household supplies, vitamins or drugs. (The food purchases allowed are the same as in the Supplemental Nutrition Assistance Program.)

If you are buying a combination of items such as food and paper goods, only the eligible food items will be paid from your South Dakota EBT card. You will need to pay cash for all other items.

How do I continue my benefits?

Three months after you have received your first benefit, you will receive a report form in the mail. The form is simple to complete and asks for any changes in your household size and income for that three-month period. If you are receiving SNAP (formerly known as food stamps) benefits at the time your report form is received, you will no longer be eligible for the Sales Tax on Food Refund Program.

Once you have completed your report form, mail it to:

  • South Dakota Department of Social Services,
    Sales Tax on Food Refund Program,
    700 Governors Drive,
    Pierre, SD 57501-2291
  • Or fax your completed form to (605) 773-7183.
  • If you do not send in the form, eligibility for the program will stop and you will need to reapply to receive further benefits.

What if I am receiving SNAP (food stamp) benefits?

If you are receiving SNAP benefits at the time you apply for the Sales Tax on Food Refund program, you will not be eligible for the Sales Tax on Food Refund program.

Who can I contact for more information?

For more information about the Sales Tax on Food Refund Program or assistance filling out your application, you can contact our office by calling (605) 773-4105 or toll-free at 1-866-674-0543 or email at SalesTaxOnFoodRefund@state.sd.us.