Group fails to gather enough petition signatures to put new South Dakota tax law on the ballot

Opponents of a new law that uses a higher state sales tax rate to fund property tax reductions for homeowners said Friday they did not collect enough petition signatures to put the measure on the Nov. 3 ballot.

South Dakotans for Fair Taxes needed 17,508 signatures from registered South Dakota voters to refer the law. A press release from the group announcing its failure to reach that threshold did not say how many signatures were gathered. The law will take effect Wednesday.

The state sales tax rate is scheduled to return from 4.2% to 4.5% in July 2027, when a temporary rate reduction expires. The new law will capture the revenue from the increase and use it to reduce property taxes imposed by school districts. 

South Dakotans for Fair Taxes said the law unfairly requires renters to pay a higher sales tax while limiting tax relief to homeowners. Ned Horsted chairs the group.

“The cost of living crisis is hitting all South Dakotans,” he said in a statement, adding that the law “disproportionately benefits those with the most expensive homes and is paid for by the rest of us at checkout, including groceries for our families.”

The group’s coalition included Bread for the World South Dakota, the South Dakota AFL-CIO, and Dakota Rural Action.