South Dakota Attorney General Marty Jackley has released the final ballot explanation for a proposed initiated Constitutional Amendment that would repeal property taxes in the state and replace them with a new “retail transaction” tax. If sponsors collect 35,017 valid petition signatures, the measure would appear on the 2026 general election ballot.
Attorney General Jackley emphasized that he takes no position on the proposal. In accordance with state law, his office provided a fair and neutral explanation to assist voters in understanding the measure.
The proposed amendment is sponsored by Abolish Property Taxes SD, a statewide ballot question committee formed by Julie Frye-Mueller, Matt Smith, and Mike Mueller.
Under the proposal, South Dakota’s current property tax system, as established in the state Constitution, would be repealed. In its place, a tax would be levied on retail transactions:
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For purchases of $15 or more, a flat $1.50 tax would apply.
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For purchases under $15, a 10% tax would be applied.
The Attorney General’s final explanation was issued after reviewing public feedback during the 10-day comment period on the draft explanation, which received 229 comments from residents and stakeholders.
The final ballot explanation is intended to clearly outline the potential impact and mechanics of the proposed amendment so voters can make an informed decision in the 2026 election.