South Dakotans need real relief - not a tax shift

South Dakotans for Fair Taxes aims to ensure tax policies distribute the tax burden fairly within our communities.

We oppose SB 245, and are gathering 17,500+ signatures to refer it to the November 2026 ballot so that all South Dakotans can have a vote.

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FOR IMMEDIATE RELEASE: April 29, 2026

Citizen Groups Reject Unfair Tax Shift, Launch Referendum

SB 245 offers property tax relief on the backs of working families

Today South Dakotans for Fair Taxes, a coalition of citizen groups including Bread for the World SD, South Dakota AFL-CIO, and Dakota Rural Action launched a campaign to refer Senate Bill 245 to the voters on the November ballot. SB 245 would draw an estimated $110 million of revenue from a scheduled sales tax increase from 4.2% to 4.5% in 2027 into a relief fund for homeowner property taxes. The coalition is calling the bill, ostensibly billed as property tax relief in the last days of the 2026 legislative session, a permanent wealth transfer from the state’s working families to the most affluent homeowners. 

“I think SB 245 is the most despicable bill that passed this year's legislature. It's a blatant transfer of wealth from the lower incomes to the higher incomes. High-end homes get the lion’s share of the benefit. I don’t think it's right to ask renters to pay taxes for homeowners," said Cathy Brechtelsbauer, volunteer with Bread for the World, SD Chapter. 

The bill only provides tax relief to owner-occupied homes, ignoring the over 30% of South Dakota residents who rent. Rental homes and multi-family dwellings are not eligible for relief, meaning that renters’ burdens will only increase as they are faced with higher sales taxes. South Dakota renters already spend 35% or more of their income on rent, and the increased sales tax burden will further squeeze their budgets.  

"Whether you're a union worker in Watertown or an unorganized restaurant server, everyone pays the same sales tax hike. But only homeowners get relief, and the richest get the most. That’s not relief—it's a tax shift that leaves working people struggling while subsidizing the wealthy. South Dakotans for Fair Taxes demands a vote to stop this unfair transfer." Matt Edzards, SD Federation of Labor, AFL-CIO Executive Board member and National Association of Letter Carriers Branch 491 Shop Steward.

Owners of modest homes may not even receive much net benefit after figuring in the cost of paying higher sales taxes. Additionally, agricultural land is not eligible for any relief, and family farmers will get saddled with paying higher taxes on already expensive inputs and equipment. 

A poll conducted earlier this month by the Chiesman Center for Democracy and South Dakota News Watch reported that nearly half of voters opposed swapping higher sales taxes for property tax relief, and that more voters opposed the policy than supported it. 

“Dakota Rural Action has long fought against projects and unfair policies that benefit the few at the expense of everybody else. Skyrocketing property taxes are absolutely an issue that must be addressed in our state, but having working and middle class people pay for tax relief on million dollar mansions doesn't address the real cost of living crisis hitting our communities. We believe South Dakota voters deserve a choice in this matter.” said Ned Horsted, chair of South Dakotans for Fair Taxes and Dakota Rural Action board member.

South Dakotans for Fair Taxes chair is Ned Horsted, who is a member of Dakota Rural Action’s Board of Directors. The Secretary is Matt Edzards, an executive board member of the SD Federation of Labor, AFL-CIO and Shop Steward for the National Association of Letter Carriers Branch 491. Other groups who would like to join this effort to ensure that South Dakota’s tax policies are fair for all are encouraged to contact info@sd4fairtaxes.org. 

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