A sample ballot is on display for voters during the Nov. 5, 2024, general election in Sioux Falls, South Dakota. (Photo by Makenzie Huber/South Dakota Searchlight)
The South Dakota Attorney General’s office released a proposed explanation Friday for a potential citizen-initiated ballot question that would repeal property taxes and replace them with a retail transaction tax.
The sponsor of the measure is Abolish Property Taxes SD, a statewide ballot question committee formed by former legislator Julie Frye-Mueller, Matt Smith and Mike Mueller. They’re seeking to place a state constitutional amendment on the ballot in the November 2026 general election.
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Attorney General Marty Jackley is required to provide a fair and neutral explanation of the measure.
His Friday news release said the measure would repeal South Dakota’s property tax system set forth in the state constitution and replace it with a tax on each retail transaction. For each retail transaction of $15 or more, a flat tax of $1.50 would be assessed. For each retail transaction less than $15, a 10% tax would be assessed.
The transaction taxes would be added on top of current sales taxes, which include the state 4.2% sales tax, up to 2% city sales taxes, and up to 1% additional city taxes on alcohol, restaurants, event admissions and lodging.
The public has 10 days, until Oct. 27, to provide written comment on the explanation. The final explanation is due to the Secretary of State’s Office on Nov. 5.
The sponsors will have to circulate petitions and gather at least 35,017 signatures from registered South Dakota voters to qualify the measure for the ballot.
How to comment
Comments on the proposed explanation (but not the merits of the proposed ballot question itself) may be submitted by mail or hand-delivered to:
Office of the Attorney General
Ballot Comment
1302 S.D. E. Hwy. 1889, Suite #1
Pierre, SD 57501
Comments may also be emailed to ATGballotcomments@state.sd.us. Comments should be clearly expressed in the body of the email. The Attorney General’s Office will not open attachments, in an effort to prevent malware or other digital threats. Please include your name and contact information when submitting your comment. The title of the comment must be included in the subject line of the email.
The deadline is Oct. 27.
Octo 17 2025 Ballot Int. Const. Measure Retail Transaction Tax