SOUTH DAKOTA – Opponents of a property tax relief law passed by the South Dakota legislature this year want the issue on the November ballot.

A coalition called South Dakotans for Fair Taxes is launching a ballot question proposal to ask voters if they support the law. Senate Bill 245 will transfer money from the state’s scheduled sales tax increase, set to take effect next year, into a fund for property tax relief.

Ned Horsted, chair of the group and a Republican candidate for South Dakota House District 6, called it an unjust wealth transfer benefiting upper-income homeowners.

“About two-thirds of South Dakotans own their homes,” Horsted pointed out. “There’s an entire third of the population that’s going to pay more at the grocery store, pay more for anything that they do.”

The sales tax cut enacted by the state legislature three years ago ends on June 30, 2027, when the sales tax will increase from 4.2% to 4.5%. The law would use an anticipated $110 million in revenue from the increase for property tax relief. Supporters, including Gov. Larry Rhoden, said it is part of the biggest property tax cut in the state’s history.

The law would not benefit rental homes, multifamily dwellings or agricultural land. Horsted acknowledged because of inflation and surging home prices, people on both sides of the issue need tax relief but he does not think the new law is the way to do it. He added if the petition makes the ballot and voters pass it, it could put pressure on legislators to change the law.

“All that this would do is refer this particular law and whether or not this is the solution,” Horsted explained. “Let’s remember, this is a permanent change to South Dakota’s tax infrastructure.”

Bread for the World South Dakota, the South Dakota AFL-CIO and Dakota Rural Action are all backing the petition. They have until June 28 to get at least 17,500 signatures to qualify for the November ballot.