Referendum! Three Groups Launch Petition Drive to Stop SB 245 Sales-Tax Hike for Property Tax Breaks

Last updated on 2026-05-01

Some voters really aren’t keen on paying for property tax relief by raising sales tax. Some voters are so unkeen on that regressive move that they announced a petition drive to refer Senate Bill 245 to a public vote in November:

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 [Dakota Rural Action, press release, 2026.04.29].

You know how I love a good referendum. I’ll have more to say about the political implications of this petition drive shortly.

But right now, nuts and bolts for the referrers: anyone who wants to participate in this petition drive, stop SB 245 from taking effect on July 1, and put this tax swap to a vote on November 3 needs to get busy:

• Circulators must collect at least 17,508 signatures from registered South Dakota voters and submit them to the Secretary of State before 5 p.m. Central on Monday, June 29.
• That’s 61 days from now. Assume there’s no time to collect on June 29, because sponsors will be busy boxing and hauling all the petition sheets to Pierre. That leaves 60 days to circulate.
• Assume an 80% validity rate: the minimum safe signature target is roughly 22,000.
• 22,000 signatures in 60 days: that’s 370 signatures per day.
• One volunteer collecting two signatures a day, every day, from now until Sunday, June 28, could collect 120 signatures.
• 200 volunteers collecting signatures at that rate could collect 24,000 signatures by the deadline.
• Any South Dakota resident at least 18 years old can circulate a petition. Circulators do not have to be registered voters.
• Any person registered to vote in South Dakota may sign a statewide referendum petition.
• Signers must fill six boxes on a referendum petition:
  1. Signature
  2. Printed name
  3. Address at which signer is registered to vote, not residence address (that’s a recent change: see SDCL 2-1-1).
  4. City/town at which signer is registered to vote.
  5. Date of signing.
  6. County in which signer is registered to vote.
• Circulators must witness every signature—i.e, if you’re circulating, you have to have your eyes on the signer and the signature as it happens.
• Circulators must provide every signer (not everyone they talk to, just people who actually put their names and info on the petition) with a circulator handout [per SDCL 2-1-3.1] containing the following information*:
  1. Title of the referred law
  2. Name, phone number, and email address of each petition sponsor
  3. Statement of whether the circulator is volunteering or paid
  4. For paid circulators only, the amount of pay they are receiving.
• When circulators are done circulating a petition sheet, they must take the sheet to a notary public; provide their own name, residence address, city, and state (SD, obviously); sign the circulator’s oath; and get the notary’s seal and signature.

Time’s a-wastin’! Contact the coalition via the email address at the end of their announcement, get a petition, and go get signatures!

*SDCL 2-1-3.The Secretary of State’s guidance on “How to Refer a State Law” says the circulator handout must also contain “A fiscal note (if applicable).” However, (1) no fiscal note was prepared during Session for SB 245, and even if a fiscal note had been prepared, (2) SDCL 2-1-3.1 does not mention any fiscal note:

The petition circulator shall provide to each person who signs the petition a circulator handout containing the title of the referred law; the name, phone number, and email address of each petition sponsor; a statement whether the petition circulator is a volunteer or paid circulator and, if a paid circulator, the amount the circulator is being paid. The secretary of state must approve the circulator handout for each referred law before the petition is circulated [SDCL 2-1-3.1, excerpt pertaining to circulator handout, amended 2025].

2025 SB 91 struck the fiscal note requirement from circulator handouts for all referred measures and initiatives.