Draft Explanation Released For Proposed 2026 Initiated Constitutional Amendment to Repeal Property Taxes

FOR IMMEDIATE RELEASE:  Friday, October 17, 2025

Contact: Tony Mangan, Communications Director, 605-773-6878

PIERRE, S.D. – At the request of the sponsor, an explanation for a proposed initiated Constitutional Amendment that would repeal property taxes in South Dakota and replace them with a “retail transaction” tax, which would be on the 2026 general election ballot if approved, has been submitted for public review by the South Dakota Attorney General’s Office. 

Attorney General Marty Jackley takes no position on any such proposal for purposes of the ballot explanation. He has provided a fair and neutral explanation on the initiated Constitutional Amendment to help assist the voters as required by state law. The sponsor of the proposed initiated Constitutional Amendment is Abolish Property Taxes SD, a Statewide Ballot Question Committee formed by Julie Frye-Mueller, Matt Smith, and Mike Mueller.

This proposed initiated Constitutional Amendment repeals South Dakota’s property tax scheme set forth in the Constitution and replaces it with a tax “on each retail transaction.”  For each “retail transaction” of $15 or more, a flat tax of $1.50 is assessed.  For each “retail transaction” less than $15, a 10% tax is assessed.

The ballot explanation can be found here.

State law requires the Attorney General draft a title and explanation for each initiated measure, initiated constitutional amendment, constitutional amendment proposed by the Legislature, or referred measure that may appear on an election ballot. The Attorney General's explanation is meant to be an "objective, clear, and simple summary" intended to "educate the voters of the purpose and effect of the proposed" measure, as well as identify the "legal consequences" of each measure.

Once the Attorney General has filed and posted the draft explanation, the public has 10 days to provide written comment. The explanation was filed October 17, 2025, and the deadline for comments on this explanation is October 27, 2025 at the close of business in Pierre, South Dakota. The final explanation is due to the Secretary of State on November 5, 2025.

The initiated Constitutional Amendment would require 35,017 valid petition signatures to qualify for the 2026 general election ballot.

To file written comments regarding the language, not the merits on the proposed draft Attorney General’s explanation, please use one of the following methods below. Copies of all received comments will be posted on this website. 

Comments may be submitted via mail, or through hand delivery, to the Attorney General’s Office at: 

Office of the Attorney General
Ballot Comment
1302 S.D. E. Hwy. 1889, Suite #1
Pierre, SD 57501

Comments that are hand delivered must be received by the close of business in Pierre, South Dakota, by October 27, 2025. 

Comments may also be emailed to ATGballotcomments@state.sd.us by October 27, 2025. 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.

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