Codington County Voters to Decide 0.5% Sales Tax for Property Tax Relief on November Ballot
- Steve Jurrens
- 2 minutes ago
- 3 min read
Northeast Radio SD News – Watertown, SD - The debate over a proposed local tax shift is officially heading to the ballot box. During the Tuesday meeting, Codington County Commissioners formally noted that a citizen-led petition to refer Ordinance No. 83 has been successfully filed and verified. As a result, the measure will appear before voters on the upcoming November 3, 2026, General Election ballot.
Ordinance 83, originally adopted by the Board of County Commissioners on July 21, 2026, seeks to establish a 0.5% county gross receipts tax and corresponding use tax. The tax was made possible by the passage of Senate Bill 96 during the 2026 state legislative session (codified as SDCL 10-52B), which granted counties the authority to levy such taxes specifically to fund property tax relief.
How the Tax and Relief Structure Would Work
If approved by voters, the 0.5% tax would be applied to the gross receipts of businesses within Codington County already subject to the state’s retail occupational sales and service tax, as well as on the privilege of use, storage, and consumption of qualifying items purchased after January 1, 2027.
During the meeting, Commission Chairman Troy VanDusen read the official State’s Attorney’s explanation that will appear on the ballot to ensure the public understands the mechanics of the ordinance.
By law, all revenue generated from the new tax must be deposited directly into a dedicated county property tax reduction fund.
· Primary Relief: The fund’s primary purpose is to provide a credit against property taxes for properties classified as owner-occupied. This credit must be applied in an equal percentage to all qualifying owner-occupied properties.
· Surplus Relief: If the fund generates more money than is necessary to replace 100% of the county taxes on owner-occupied properties, the remaining surplus must then be used to provide an equal percentage credit against property taxes on agricultural and nonagricultural properties.
To manage the program, the county is permitted to use up to 2% of the deposited money during the fund’s first year, and up to $20,000 in each subsequent year for administrative costs. The fund is strictly prohibited from being used for any other purpose.
The Ballot Options
Voters heading to the polls on November 3 will face a simple choice:
· A “YES” vote approves Ordinance No. 83, allowing the 0.5% sales and use tax to take effect on the date permitted by state law.
· A “NO” vote disapproves the ordinance, meaning the tax would not take effect, and the proposed property tax reduction fund would not be created. A no vote does not repeal any existing county ordinances.
A Nod to the Democratic Process
Following his reading of the ballot language, Chairman VanDusen paused to acknowledge the citizens who organized the referendum effort.
“I would like to just take a moment to thank the people that took the initiative to seek signatures on that and get it on the ballot,” VanDusen stated. “That’s fine. That’s great. That’s our process. That’s how we do things. And so we appreciate them doing that.”
